Q1 2024 Ross Stores Inc Earnings Call Transcript
Key Points
- Total sales grew 8% to $4.9 billion, up from $4.5 billion last year.
- Comparable store sales rose 3%, driven by increased traffic.
- Earnings per share were $1.46, exceeding expectations.
- Operating margin improved to 12.2%, up 205 basis points from 10.1% in 2023.
- dd's DISCOUNTS sales trends outperformed Ross, indicating a favorable customer response to improved value offerings.
- Macroeconomic headwinds continue to pressure customers' discretionary spending.
- Merchandise margin declined by 15 basis points due to offering more sharply priced brands.
- Apparel business underperformed, particularly in ladies' apparel.
- Ongoing uncertainty in the macroeconomic and geopolitical environments, including prolonged inflation, continues to squeeze low to moderate income customers' purchasing power.
- Inventory levels increased, with total consolidated inventories up 10% versus last year.
Good afternoon, and welcome to the Ross Stores First Quarter 2024 Earnings Release Conference Call. The call will begin with prepared comments by management, followed by a question-and-answer session. (Operator Instructions)
Before we get started, on behalf of Ross Stores, I would like to note that the comments made on this call will contain forward-looking statements regarding expectations about future growth and financial results, including sales and earnings forecasts, new store openings and other matters that are based on the company's current forecast of aspects of its future business. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations. Risk factors are included in today's press release and the company's fiscal 2023 Form 10-K and fiscal 2024 Form 8-Ks on file with the SEC.
And now I'd like to turn the call over to Barbara Rentler, Chief Executive Officer.
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