Ross Stores, Inc. Q4 FY2025 earnings call

Jim Conroy thanked associates for their dedication. Quarterly results showed accelerated business momentum with 12% sales growth, 9% comparable store sales growth driven by transactions. Merchandising had strong assortments, marketing campaign was successful, store and supply chain improvements contributed to growth. Store expansion plan included 110 new locations in 2026.

Fourth quarter total sales grew 12% to $6.6 billion. Comparable store sales grew 9%. Full year total sales increased 8% to $22.8 billion. Comparable store sales grew 5%. Ross Dress for Less added 80 new stores, DeeDees discount stores added 10. Inventory was up 8% with Packaway representing 37% of total inventory.

First quarter comparable store sales projected 7% - 8%, earnings per share $1.60 - $1.67. Full year 2026 same store sales forecast 3% - 4%, earnings per share $7.02 - $7.36. Plan to open 110 new locations including 85 Ross and 25 DeeDees.

Forward-looking statements subject to risks and uncertainties that could cause actual results to differ, including macro environment, tariffs, and competitive factors.

Q: Matthew Boss asked about inflection to 8% traffic-led comps and 7-8% comp guide.

A: Jim and Michael discussed broad-based improvement in merchandise categories and regions.

Q: Paul Ledgeway asked about merchandise margin improvement and 1Q flow-through.

A: Michael explained drivers of margin improvement and headwinds in 1Q.

Q: Lorraine Hutchinson asked about key factors driving ladies' business acceleration.

A: Jim talked about brand strategy and outlook.

Q: Chuck Grom asked about marketing strategy evolution.

A: Jim and Michael discussed marketing results and potential spend.

Q: Brooke Roach asked about customer demographic shifts and earnings algorithm.

A: Jim and Michael answered on customer demographics and earnings algorithm.

Q: Michael Benetti asked about first quarter comp and margins.

A: Michael explained factors impacting first quarter margins.

Q: Mark Altschwager asked about new store productivity.

A: Jim and Michael discussed new store productivity factors.

Q: Simeon Siegel asked about AUR and capital expenditure.

A: Jim and Michael answered on AUR and capital allocation.

Q: Ike Borichow asked about consumer shopping changes.

A: Jim answered on consumer base composition.

Q: Dana Telsey asked about DeeDees expansion.

A: Jim and Michael discussed DeeDees strategies.

Q: Marnie Shapiro asked about DeeDees trends.

A: Jim answered on DeeDees trends.

Q: Anisha Sherman asked about comp sustainability.

A: Jim discussed comp sustainability views.

Q: Jay Sol asked about market share.

A: Jim talked about market share shift from mainstream retail.

Q: Christina Katai asked about branded strategy and customer stickiness.

A: Jim discussed branded strategy and customer behavior.

Q: John Carden asked about marketing and store investment.

A: Jim answered on marketing and store investment approach.