Q4 2025 Ross Stores Inc Earnings Call Transcript
Key Points
- Ross Stores Inc (ROST) reported a 12% increase in total sales for the fourth quarter, surpassing expectations.
- Comparable store sales grew by 9%, driven by an increase in transactions and customer engagement.
- The company successfully expanded its store base, adding 80 new Ross Dress for Less stores and 10 DD's Discount stores in 2025.
- Ross Stores Inc (ROST) saw broad-based strength across all merchandise categories, with shoes and cosmetics performing particularly well.
- The company announced a new two-year, $2.55 billion stock repurchase authorization, reflecting a 21% increase over the previous program.
- Operating margin for the fourth quarter was slightly down at 12.3% compared to 12.4% last year, excluding a one-time benefit.
- The company faced a 1% point erosion in comparable store sales due to weather-related disruptions.
- Higher incentive costs were noted, impacting the overall cost structure.
- Ross Stores Inc (ROST) anticipates higher distribution center costs and unfavorable timing of packaway-related expenses in the first quarter of 2026.
- The company is projecting a decrease in operating margin for the first quarter of 2026 due to increased costs.
Good afternoon and welcome to the Raw store's 4th quarter and fiscal 2025 earnings release conference call. The call will begin with prepared comments by management followed by a question-and-answer session. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad.
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 2024 Form 10k and fiscal 2025 Form 10Qs and 8ks on file with the SEC.
And now I'd like to turn the call over to Jim Conroy, Chief Executive Officer.
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