Ross Stores, Inc: Leading Off-Price Retailer

Ross Stores, Inc. operates as an off-price retailer of first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family. The company delivers outstanding values on a wide array of quality name brand fashions for the family and the home in convenient and easy-to-shop stores. It remains confident in its prospects for market share gains over the long term.

Company overview

• The company launched its off-price business over four decades ago based on the premise that everyone always loves a bargain.
• Since then, it has responded to customers’ wants and needs by consistently delivering outstanding values on a wide array of quality name brand fashions for the family and the home in convenient and easy-to-shop stores.
• It accomplishes this through its two off-price apparel and home fashion chains, Ross Dress for Less and dd’s DISCOUNTS.

Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 company headquartered in Dublin, California. As of the end of fiscal 2024, it operated 1,831 Ross Dress for Less locations in 43 states, the District of Columbia, and Guam, and 355 dd’s DISCOUNTS stores in 22 states. The company supports these stores through its headquarters, buying offices, and its network of distribution centers and warehouses.

The company’s commitment to providing branded bargains throughout its stores has driven solid growth in both sales and earnings in fiscal 2024 as customers responded positively to the improved quality of assortments. It ended the year with 77 net new stores, representing 67 net new Ross Dress for Less and 10 dd’s DISCOUNTS.

Business segments and revenue breakup %

Ross Stores, Inc. has one reportable segment, as the two operating segments, Ross and dd’s DISCOUNTS, share similar economic and other qualitative characteristics.

• Ross Dress for Less: This segment offers name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department store and specialty store regular prices every day. It is the largest off-price apparel and home fashion chain in the U.S. with 1,831 stores in 43 states, the District of Columbia, and Guam.
• dd’s DISCOUNTS: This segment features a more moderately-priced assortment of name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. It operates 355 locations in 22 states.

The operational scope of each segment includes only activities related to off-price retailing in stores throughout the United States and its territories. The measure of profit or loss for the reportable segment is operating income, defined as earnings before interest and taxes.

No revenue contribution percentage is disclosed for individual segments, as the company reports as one segment. Consolidated sales for fiscal 2024 were $21,129,219,000.

The segments are supported by a network of distribution centers, warehouses, and cross-dock facilities. Distribution expenses include the cost of operating these facilities.

History and evolution

Ross Stores, Inc. launched its off-price business over four decades ago based on the premise that everyone always loves a bargain. The first Ross Dress for Less locations opened in 1982. Today, Ross is the largest off-price apparel and home fashion chain in the U.S. with 1,831 stores in 43 states, the District of Columbia, and Guam. It launched dd’s DISCOUNTS in 2004, and it now operates 355 locations in 22 states.

• The company has responded to customers’ wants and needs by consistently delivering outstanding values on a wide array of quality name brand fashions.
• It accomplishes this through two off-price apparel and home fashion chains.

In 2024, it added 77 net new stores, including 67 net new Ross Dress for Less and 10 dd’s DISCOUNTS. It ended the year with a total of 2,186 stores.

The company has demonstrated its commitment to treating the environment with respect and supporting the communities where it serves. It has worked hard to drive out waste and inefficiency from its operations, which also serves to reduce its carbon footprint.

• It continued to elevate its sustainability ambitions to increase transparency and help create a sustainable future for all, while also delivering value to its customers.
• Last year, it continued to demonstrate its commitment to transparency by again participating in the Carbon Disclosure Project Climate Change Questionnaire. It also published its 2023 Corporate Social Responsibility Report, which includes its ongoing Corporate Social Responsibility accomplishments. In the report, it shares the progress it made towards its greenhouse gas emissions target and towards reaching net-zero greenhouse gas emissions by 2050 or sooner. It is continuing to explore strategies to reduce emissions while also creating business value. To learn more about its efforts, it refers to its website, www.rossstores.com.

Moving forward, it will continue to authorize programs to help Associates connect with one another and support its ongoing diversity, equity, and inclusion efforts. These programs include employee resource groups (known at Ross as “Community Networks”) which enable thousands of Associates to participate across the entire organization to connect on its ongoing DE&I efforts. It also continued its efforts to attract diverse talent across the organization.

In 2024, it maintained its commitment to Associate development with digital and in-person learning and engagement opportunities. Other ongoing initiatives included delivering competitive wages and benefits in each of its geographic markets, offering internships, as well as continuing education opportunities for hundreds of its Associates and their dependents.

Products and services with revenue breakup %

Ross Stores, Inc. offers name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department store and specialty store regular prices every day. dd’s DISCOUNTS features a more moderately-priced assortment at savings of 20% to 70% off moderate department and discount store regular prices every day.

The merchandise mix for fiscal 2024 is as follows:

• Home Accents and Bed and Bath: 26%
• Ladies: 22%
• Men’s: 16%
• Accessories, Lingerie, Fine Jewelry, and Cosmetics: 15%
• Shoes: 12%
• Children’s: 9%

No revenue contribution percentage is disclosed for individual products, as the company reports consolidated sales. Consolidated sales for fiscal 2024 were $21,129,219,000, for fiscal 2023 $20,376,941,000, and for fiscal 2022 $18,695,829,000.

The company offers products through its stores, with services focused on providing branded bargains. It offers assortments that were positively received by its shoppers during the year. Given the ongoing improved performance of dd’s in its newer markets, it expects to begin rebuilding its pipeline for expanded growth in the near future.

• Home Accents and Bed and Bath: This category includes items such as tableware, bedding, and bath products.
• Ladies: Apparel for women.
• Men’s: Apparel for men.
• Accessories, Lingerie, Fine Jewelry, and Cosmetics: Includes accessories, lingerie, fine jewelry, and cosmetics.
• Shoes: Footwear for the family.
• Children’s: Apparel and accessories for children.

The company offers these products at everyday low prices, with careful execution of its off-price strategies, and a consistent focus on offering quality branded bargains.

Brand portfolio with revenue %

The company’s brand portfolio consists of two main brands: Ross Dress for Less and dd’s DISCOUNTS.

• Ross Dress for Less: Positioning as the largest off-price apparel and home fashion chain in the U.S., offering savings of 20% to 60% off regular prices.
• dd’s DISCOUNTS: Positioning as a more moderately-priced assortment, offering savings of 20% to 70% off regular prices.

No revenue contribution percentage is disclosed for individual brands, as the company reports as one segment. Consolidated sales for fiscal 2024 were $21,129,219,000.

Ross Dress for Less is the core brand, with 1,831 stores, while dd’s DISCOUNTS has 355 stores. The company remains confident in its prospects for market share gains over the long term with these brands.

• Examples of brand positioning: Ross Dress for Less focuses on quality name brand fashions for the family and home.
• dd’s DISCOUNTS offers similar categories but at more moderate price points.

The brands are supported by consistent delivery of outstanding values.

Geographical presence and region-wise revenue %

Ross Stores, Inc. operates in the United States, with Ross Dress for Less in 43 states, the District of Columbia, Guam, and Puerto Rico, and dd’s DISCOUNTS in 22 states.

• Ross Dress for Less: 1,831 stores in 43 states, the District of Columbia, and Guam.
• dd’s DISCOUNTS: 355 stores in 22 states.

The company has a concentration of store locations in California, Texas, and Florida; together those states include almost 50% of its stores. More than half of its distribution center and warehouse capacity, approximately 22% of its stores, and its corporate headquarters are located in California.

In 2024, it opened 67 net new Ross Dress for Less across the country, including in the newer markets of Michigan, Minnesota, New York, and Pennsylvania while also increasing its presence in the Sunbelt states. dd’s DISCOUNTS store growth included a net addition of 10 new locations as it mainly expanded its footprint in the core markets of California, Florida, and Texas.

The company ended the year with 1,831 Ross Dress for Less and 355 dd’s DISCOUNTS, consisting of 1,381 Ross and 355 dd’s stores in 43 states, the District of Columbia, and Guam.

No region-wise revenue breakdown is disclosed. Consolidated sales for fiscal 2024 were $21,129,219,000.

The manufacturing, offices, and operational footprint include headquarters in Dublin, California, buying offices in New York, Los Angeles, and Boston, and a network of distribution centers and warehouses. The New York buying office is subject to a 99-year ground lease. The Los Angeles and Boston buying offices are leased with terms expiring in 2027 and 2026, respectively, and contain renewal provisions.

Distribution centers are located in various states, with investments in supply chain to support long-term growth. In 2024, it invested approximately $260 million in distribution and transportation.

• Examples of geographical expansion: Added stores in Michigan, Minnesota, New York, Pennsylvania, California, Florida, Texas.
• Operational footprint: Distribution centers in Buckeye, Arizona, and planning for next distribution centers.

Financial performance analysis

Ross Stores, Inc. reported solid growth in both sales and earnings in fiscal 2024 as customers responded positively to the improved quality of assortments throughout its stores. Fiscal 2024 revenues were $21.1 billion.

Consolidated performance for fiscal 2024 (52 weeks), fiscal 2023 (53 weeks), and fiscal 2022 (52 weeks):

• Sales: $21,129,219,000 in 2024, $20,376,941,000 in 2023, $18,695,829,000 in 2022.
• Cost of goods sold: $15,260,506,000 in 2024, $14,801,601,000 in 2023, $13,946,230,000 in 2022.
• Selling, general and administrative: $3,283,127,000 in 2024, $3,267,677,000 in 2023, $2,759,268,000 in 2022.
• Operating income: $2,585,586,000 in 2024, $2,307,663,000 in 2023, $1,990,331,000 in 2022.
• Interest (income) expense, net: $(171,568,000) in 2024, $(164,118,000) in 2023, $2,842,000 in 2022.
• Earnings before taxes: $2,757,154,000 in 2024, $2,471,781,000 in 2023, $1,987,489,000 in 2022.
• Provision for taxes on earnings: $666,424,000 in 2024, $597,261,000 in 2023, $475,448,000 in 2022.
• Net earnings: $2,090,730,000 in 2024, $1,874,520,000 in 2023, $1,512,041,000 in 2022.

Basic earnings per share: $6.36 in 2024, $5.59 in 2023, $4.40 in 2022.

Diluted earnings per share: $6.32 in 2024, $5.56 in 2023, $4.38 in 2022.

No standalone performance is disclosed, as the company reports consolidated.

Multi-year trend: Sales increased from $18,695,829,000 in 2022 to $20,376,941,000 in 2023 (9% increase), and to $21,129,219,000 in 2024 (4% increase from 2023). Net earnings increased from $1,512,041,000 in 2022 to $1,874,520,000 in 2023 (24% increase), and to $2,090,730,000 in 2024 (12% increase from 2023).

The increases in sales and net earnings reflect the company’s ability to deliver branded bargains and manage expenses effectively. Comparable store sales for fiscal 2024 rose 3% versus a strong 5% gain for the 52 weeks ended January 27, 2024. Fiscal 2024 earnings per share grew to $6.32 on net income of $2.1 billion, up from $5.56 per share on fiscal 2023 net income of $1.9 billion.

Profit and loss analysis

The consolidated statements of earnings show revenue growth driven by new store openings and comparable store sales increases.

• Revenue: $21,129,219,000 in 2024, up from $20,376,941,000 in 2023 and $18,695,829,000 in 2022. The 4% increase in 2024 connects to adding 77 net new stores and 3% comparable sales growth, indicating business performance from expanded footprint and customer response to assortments.
• Cost of goods sold: $15,260,506,000 in 2024, $14,801,601,000 in 2023, $13,946,230,000 in 2022. As a percentage of sales, 72.2% in 2024, 72.6% in 2023, 74.6% in 2022. The decrease in percentage reflects improved merchandise margins from lower markdowns and shortage, connecting to better inventory management.
• Selling, general and administrative: $3,283,127,000 in 2024, $3,267,677,000 in 2023, $2,759,268,000 in 2022. As a percentage of sales, 15.5% in 2024, 16.0% in 2023, 14.8% in 2022. The slight decrease in 2024 percentage shows expense leverage from sales growth, including a $61.6 million gain on sale of property.
• Operating profit: $2,585,586,000 in 2024, $2,307,663,000 in 2023, $1,990,331,000 in 2022. Operating margin 12.2% in 2024, 11.3% in 2023, 10.6% in 2022. The margin improvement in 2024 from 2023 by 90 basis points connects to higher merchandise margins and expense leverage.
• Interest (income) expense, net: $(171,568,000) in 2024, $(164,118,000) in 2023, $2,842,000 in 2022. The income in 2024 and 2023 reflects interest income of $234,955,000 and $238,207,000, respectively, from investments, minus interest expense.
• Net profit: $2,090,730,000 in 2024, $1,874,520,000 in 2023, $1,512,041,000 in 2022. Net margin 9.9% in 2024, 9.2% in 2023, 8.1% in 2022. The increase connects to operating profit growth.

Expense structure: Cost of goods sold includes merchandise costs, occupancy, distribution, freight, buying. Selling, general and administrative includes store payroll, other store expenses, advertising, other general and administrative.

Margin movements: Operating margin increased 90 basis points in 2024 from 2023 due to 40 basis points from the property sale gain, 30 basis points from lower incentive costs, and 20 basis points from leverage on higher sales.

No financial ratios like ROE or ROCE are disclosed.

Balance sheet analysis

The consolidated balance sheets show a strong position with cash and inventory growth.

• Total assets: $14,905,332,000 in 2024, $14,300,109,000 in 2023. Increase of $605,223,000 connects to higher cash, inventory, property.
• Current assets: $7,538,696,000 in 2024, $7,398,138,000 in 2023. Cash $4,730,744,000, inventory $2,444,513,000.
• Property and equipment, net: $3,792,403,000 in 2024, $3,531,901,000 in 2023. After depreciation $4,730,733,000.
• Operating lease assets: $3,294,858,000 in 2024, $3,126,841,000 in 2023.
• Total liabilities: $9,396,137,000 in 2024, $9,428,783,000 in 2023. Decrease from debt repayment.
• Current liabilities: $4,661,825,000 in 2024, $4,185,796,000 in 2023. Accounts payable $2,126,317,000, current debt $699,731,000.
• Long-term debt: $1,515,080,000 in 2024, $2,211,017,000 in 2023. After repaying $250,000,000.
• Non-current operating lease liabilities: $2,764,281,000 in 2024, $2,603,349,000 in 2023.
• Stockholders’ equity: $5,509,195,000 in 2024, $4,871,326,000 in 2023. Retained earnings $4,128,207,000.
• Common stock: 328,813,000 shares outstanding in 2024, par value $3,288,000.

Capital structure: Long-term debt $2,214,811,000 net, equity $5,509,195,000. Debt to equity ratio not disclosed, but strong equity base.

Net worth and reserves: Retained earnings $4,128,207,000 in 2024, up from $3,548,667,000, reflecting net earnings minus dividends and repurchases.

Debt and liquidity position: Cash $4,730,744,000, current ratio (current assets/current liabilities) 1.62 in 2024. $1.3 billion credit facility available, no borrowings. Strong liquidity from $2,356,988,000 operating cash flow.

Cash flow analysis

Cash flows show strong operating cash, used for investments, repurchases, dividends.

• Operating cash flow: $2,356,988,000 in 2024, $2,514,490,000 in 2023, $1,689,373,000 in 2022. Driven by net earnings $2,090,730,000 plus depreciation $446,788,000, minus inventory increase $252,293,000. The decrease in 2024 from 2023 connects to higher incentive payments.
• Investing cash flow: $(637,462,000) in 2024, $(762,812,000) in 2023, $(654,070,000) in 2022. Capital expenditures $720,104,000, offset by $82,642,000 from property sale in 2024.
• Financing cash flow: $(1,858,505,000) in 2024, $(1,428,478,000) in 2023, $(1,405,444,000) in 2022. Repurchases $1,049,979,000, dividends $488,721,000, debt repayment $250,000,000 in 2024.

Net change in cash: $(138,979,000) in 2024, ending cash $4,730,744,000.

No free cash flow is disclosed, but operating cash minus capex is $1,636,884,000 in 2024, indicating strong cash generation for shareholder returns.

The cash flows connect to business performance, with operating cash supporting growth and returns.

Board of directors and leadership team

The board of directors exercises general oversight of risk management activities, including the cybersecurity program. With respect to risks related to cybersecurity, the board of directors has delegated the primary oversight responsibility to the audit committee. The audit committee, along with management, reports to the full board of directors on these matters throughout the year.

The audit committee receives quarterly cybersecurity reports from management, including the chief information security officer.

Board composition:

• Michael Balmuth: Executive Chairman of the Board, Ross Stores, Inc.
• K. Gunnar Bjorklund: Former Chairman, Rev360 LLC.
• Michael J. Bush: Managing Member, B IV Investments, LLC.
• Edward G. Cannizzaro: Board Member, PG&E Corporation and Pacific Gas and Electric Company; Former Global Head, Quality, Risk, and Regulatory, KPMG International.
• James G. Conroy: Chief Executive Officer, Ross Stores, Inc.
• Sharon D. Garrett: Management Consultant; Former Board Member, Jerome’s Furniture and Scott’s Liquid Gold-Inc.
• Michael J. Hartshorn: Chief Operating Officer, Ross Stores, Inc.
• Stephen D. Milligan: Board Member, Autodesk, Inc.; Former Chief Executive Officer and Board Member, Western Digital Corporation.
• Patricia H. Mueller: Management Consultant; Former Board Member, Dave & Buster’s Entertainment, Inc.
• George P. Orban: Managing Partner, Orban Partners.
• Doniel N. Sutton: Chief People Officer, Pinterest, Inc.; Board Member, Morningstar, Inc.

Committees:

• Audit Committee: Edward G. Cannizzaro, Sharon D. Garrett, Stephen D. Milligan.
• Compensation Committee: K. Gunnar Bjorklund, Michael J. Bush, Patricia H. Mueller, Doniel N. Sutton.
• Nominating and Corporate Governance Committee: K. Gunnar Bjorklund, Michael J. Bush, Sharon D. Garrett, Patricia H. Mueller, George P. Orban, Doniel N. Sutton.

Lead Independent Director: K. Gunnar Bjorklund.

Executive leadership team:

• Michael Balmuth, 74: Executive Chairman.
• James G. Conroy, 55: Chief Executive Officer.
• Michael J. Hartshorn, 57: Group President, Chief Operating Officer.
• Michael Kobayashi, 60: President, Chief Capability Officer.
• Karen Fleming, 58: President, Chief Merchandising Officer – Ross Dress for Less.
• Karen Sykes, 64: President, Chief Merchandising Officer – dd’s DISCOUNTS.
• Stephen Brinkley, 52: President, Operations.
• Adam Orvos, 60: Executive Vice President, Chief Financial Officer.
• Michael Balmuth served as Executive Chairman since September 2023 and rejoined the Board of Directors at that time. Prior, Strategic Advisor from 2021 to 2023, Chairman of the Board and Senior Advisor from 2019 to 2021, Executive Chairman from 2014 to 2019.
• James G. Conroy joined as Chief Executive Officer – Elect in December 2024 and Chief Executive Officer since February 2025. Previously, President and Chief Executive Officer of Boot Barn Holdings, Inc. from 2012 to November 2024.
• Michael J. Hartshorn served as Group President and Chief Operating Officer since 2019 and a member of the Board of Directors since 2021.
• Michael Kobayashi served as President and Chief Capability Officer since 2022. He will leave his officer position on March 31, 2025, transitioning to an advisor role.
• Karen Fleming served as President and Chief Merchandising Officer – Ross Dress for Less since December 2024. Previously held roles at dd’s DISCOUNTS.
• Karen Sykes served as President and Chief Merchandising Officer – dd’s DISCOUNTS since December 2024. Previously at Ross Dress for Less.
• Stephen Brinkley served as President, Operations.
• Adam Orvos served as Executive Vice President, Chief Financial Officer.

Subsidiaries, associates, joint ventures and revenue %

Ross Stores, Inc. has the following wholly-owned subsidiaries:

• Ross Procurement Inc.: Ownership 100%, incorporated in Delaware on November 22, 2004.
• Ross Merchandising Inc.: Ownership 100%, incorporated in Delaware on January 12, 2004.
• Ross Dress For Less, Inc.: Ownership 100%, incorporated in Virginia on January 14, 2004.
• Retail Assurance Group, Inc.: Ownership 100%, incorporated in Hawaii on October 15, 1991.
• Ross Distribution Company, LLC: Ownership 100%, incorporated in Delaware on March 15, 2018.

No associates or joint ventures are disclosed. No revenue contribution is disclosed for subsidiaries, as the company reports consolidated. Consolidated sales $21,129,219,000 in 2024.

The subsidiaries support the company’s operations, including procurement, merchandising, retail assurance, and distribution.

• Examples: Ross Procurement Inc. handles procurement, Ross Distribution Company, LLC manages distribution.

Physical properties (offices, plants, factories, etc.)

Ross Stores, Inc. has physical properties including stores, distribution centers, warehouses, and offices.

• Stores: 1,831 Ross Dress for Less and 355 dd’s DISCOUNTS, total 2,186 stores.
• Distribution centers and warehouses: Network supporting stores, with more than half capacity in California. In 2024, invested $260 million in distribution and transportation. Sold a packaway warehouse for $82.6 million.
• Offices: Headquarters in Dublin, California. Buying offices in New York (ground lease), Los Angeles (lease to 2027), Boston (lease to 2026).

Property and equipment, net $3,792,403,000 in 2024, including land and buildings $1,493,496,000, fixtures and equipment $4,521,044,000, leasehold improvements $1,701,340,000, construction-in-progress $807,256,000.

List of physical properties:

• Headquarters: Dublin, California.
• Buying offices: New York, Los Angeles, Boston.
• Distribution centers: Buckeye, Arizona, and others in California, Texas, Florida, etc.
• Stores: Across 43 states for Ross, 22 states for dd’s.

The company has a concentration in California, with approximately 22% of stores and over half of distribution capacity there.

Segment-wise performance

The company has one reportable segment, with operating income $2,585,586,000 in 2024, $2,307,663,000 in 2023, $1,990,331,000 in 2022.

Year-on-year movements: Increase of $277,923,000 (12%) in 2024 from 2023, $317,332,000 (16%) in 2023 from 2022.

The performance connects to sales growth and margin improvements.

No separate segment financials, as aggregated.

Operational performance: Added 77 net new stores in 2024, comparable sales up 3%. dd’s DISCOUNTS showed improved performance in newer markets.

Founders

Details on founders are not explicitly disclosed in the sources. The Stuart Moldaw Scholarship Program supports communities and provides scholarships, indicating Stuart Moldaw’s association with the company.

Shareholding pattern

The company has 1,000,000,000 authorized common shares, par value $0.01. Issued and outstanding 328,813,000 shares in 2024, 335,172,000 in 2023.

No detailed promoters, institutional, public shareholding is disclosed.

Changes: Repurchased 7.3 million shares in 2024 for $1,050 million, 8.2 million in 2023 for $950 million, 10.3 million in 2022 for $950 million.

Treasury stock: 16.4 million shares in 2024, 15.8 million in 2023.

No changes in promoters or major shareholders disclosed.

Parent

Ross Stores, Inc. is a public company with no parent company.

Investments and capital expenditure plans

Capital expenditures $720 million in 2024, $763 million in 2023, $654 million in 2022.

Allocation in 2024:

• Distribution and transportation: $260 million.
• New stores: $193 million.
• Existing stores: $171 million.
• Information systems, corporate, and other: $96 million.

Planned capex $855 million in 2025 for new stores, supply chain, information systems, store improvements.

R&D spending not disclosed.

Strategic priorities: Investments in supply chain for long-term growth, including next distribution centers. Invested $720 million in capital projects in 2024, including $270 million in 2022 for distribution.

Ongoing investments in technology to increase efficiencies. Continued to plan for further investments over the next few years in its stores, supply chain, and merchandise processes to further increase efficiencies throughout its business.

Future strategy

Management-stated strategies focus on continuing to search for opportunities to drive the business and to carefully manage what it can control. It has a flexible business model that it believes better positions it to navigate uncertainty relative to other traditional retailers.

In addition, the volatile external environment may result in more opportunities for close-out merchandise which could set it up well to deliver even greater values on branded goods in the future. It will remain focused on the strong execution of its key initiatives to deliver the values that its customers expect from it.

Capacity expansion: Plans to open new stores and improve existing stores. Investments in supply chain to support long-term growth, including construction of next distribution centers.

Market focus: Expand in existing markets and enter new geographic markets. Continue expanding off-price model in current markets and new regions.

Technology and sustainability initiatives: Continue making technology investments to improve or replace information processes and systems. Continue to elevate sustainability ambitions to increase transparency and help create a sustainable future for all, while also delivering value to customers. Continued to demonstrate commitment to transparency by participating in the Carbon Disclosure Project Climate Change Questionnaire. Published 2023 Corporate Social Responsibility Report, sharing progress towards greenhouse gas emissions target and towards reaching net-zero greenhouse gas emissions by 2050 or sooner. Continuing to explore strategies to reduce emissions while also creating business value.

To maximize ability to capture profitable market share, continue to plan for further investments over the next few years in stores, supply chain, and merchandise processes. To support continuing operations, new store and distribution center growth plans, other capital investment plans, stock repurchase program, debt repayments, and quarterly dividends, maintain sufficient liquidity.

Competitive landscape

Competitors named in the report include other off-price retailers, traditional department stores, mass merchandisers, specialty stores, online and catalog businesses, and other local, regional, and national retailers.

From external sources, competitors include TJX Companies, Burlington Stores, Macy’s, Kohl’s, Target, Big Lots, Dillard’s, Urban Outfitters, Ollie’s Bargain Outlet, Grocery Outlet.

Market positioning: Largest off-price apparel and home fashion chain in the United States. Competitive pressures in the apparel and home-related merchandise retailing industry are high. The retail industry is highly competitive and the marketplace is fragmented.

The company is subject to impacts from competitors’ pricing, business strategies, and promotional activity.

Key strengths

Key strengths supported by disclosed data include consistent focus on offering quality branded bargains, remaining confident in prospects for market share gains over the long term.

• Solid growth in both sales and earnings in fiscal 2024 as customers responded positively to the improved quality of assortments.
• Added 77 net new stores in 2024.
• Generated $2.4 billion in operating cash flow in 2024.
• Ended 2024 with $4.7 billion in cash.
• $1.3 billion credit facility available, no borrowings.
• Repurchased $1.05 billion of stock in 2024.
• Increased quarterly dividend by 10% to $0.405 per share.

The off-price model provides advantages and flexibility in adjusting merchandise mix to changing consumer tastes.

Strong cash flows generated to support general operating activities, finance operations, make capital expenditures, manage debt levels, return value to stockholders through stock repurchases and dividends.

Key challenges and risks

Risks and challenges exactly as disclosed include macroeconomic and retail industry business risks, strategic risks, operational risks, compliance, regulatory, and legal risks.

• Macroeconomic and retail industry business risks: Subject to impacts from changes in the macroeconomic environment, financial and credit markets, geopolitical conditions, and government regulation or policy. Continuing inflation, tariff increases, potential supply chain disruptions, and other external events may have significant negative effects on costs, and on consumer confidence, shopping behavior, and spending, adversely affecting sales and profitability.
• Changes and uncertainty in U.S. trade or tax policy regarding apparel and home-related merchandise produced in other countries could adversely affect business.
• Competitive pressures in the apparel and home-related merchandise retailing industry are high.
• Unexpected changes in the level of consumer spending on or preferences for apparel and home-related merchandise could adversely affect.
• Adverse or unseasonable weather may affect shopping patterns and consumer demand for seasonal apparel and other merchandise, and may result in temporary store closures and disruptions in deliveries of merchandise to stores.
• May experience volatility in sales and earnings.
• Strategic risks: Depend on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of buyers to source and purchase merchandise to enable offering customers a wide assortment at competitive prices.
• Inability to continually attract, train, and retain associates with the retail talent necessary to execute off-price retail strategies, as well as labor shortages, increased turnover, or increased labor costs could adversely affect operating results.
• Need to obtain acceptable new store sites with favorable consumer demographics to achieve planned growth.
• To achieve growth, need to expand in existing markets and enter new geographic markets.
• Subject to risks associated with importing and selling merchandise produced in other countries.
• Ability to effectively advertise and market business could impact customer traffic and demand for merchandise.
• Operational risks: In order to achieve planned gross margins, must effectively manage inventories, markdowns, and inventory shortage.
• Information or data security breaches, including cyberattacks on transaction processing and computer information systems, could disrupt operations, result in theft or unauthorized disclosure of confidential and valuable business information or credit card and other customer information, and could adversely affect business, disrupt operations, damage reputation, increase costs, and create significant legal exposure.
• Disruptions in supply chain or in information systems could impact ability to process sales and to deliver product to stores in a timely and cost-effective manner.
• A disruption within logistics or supply chain network could adversely affect ability to timely and efficiently transport merchandise to stores or distribution centers.
• Damage to corporate reputation or brands could adversely affect sales and operating results.
• Compliance, regulatory, and legal risks: Consumer problems or legal issues involving the quality, safety, or authenticity of products sold could harm reputation, result in lost sales, and/or increase costs.
• An adverse outcome in various legal, regulatory, or tax matters could damage reputation or brand and increase costs.

Conclusion and strategic outlook

The data-backed outlook shows continued growth potential, with plans to open new stores, invest in supply chain, and maintain strong cash flows for shareholder returns. Long-term positioning based on disclosed strategy includes expanding the off-price model, focusing on quality branded bargains, and pursuing market share gains.

The company remains confident in its prospects for market share gains over the long term. It will continue to search for opportunities to drive the business and to carefully manage what it can control, with a flexible business model to navigate uncertainty.

What is Ross Stores, Inc.’s revenue for fiscal 2024?

Ross Stores, Inc. reported total sales of $21,129,219,000 for the 52 weeks ended February 1, 2025.

How many stores does Ross Stores, Inc. operate?

As of the end of fiscal 2024, Ross Stores, Inc. operates 2,186 stores, consisting of 1,831 Ross Dress for Less stores in 43 states, the District of Columbia, and Guam, and 355 dd’s DISCOUNTS stores in 22 states.

What is the merchandise mix for Ross Stores, Inc.?

The merchandise mix for fiscal 2024 is Home Accents and Bed and Bath at 26%, Ladies at 22%, Men’s at 16%, Accessories, Lingerie, Fine Jewelry, and Cosmetics at 15%, Shoes at 12%, and Children’s at 9%.

What was Ross Stores, Inc.’s net earnings in fiscal 2024?

Net earnings for fiscal 2024 were $2,090,730,000, with diluted earnings per share of $6.32.

What is Ross Stores, Inc.’s operating margin for fiscal 2024?

Operating margin for the 52 weeks ended February 1, 2025, was 12.2%.

Who is the CEO of Ross Stores, Inc.?

James G. Conroy is the Chief Executive Officer of Ross Stores, Inc.

What is Ross Stores, Inc.’s sustainability goal?

Ross Stores, Inc. has an ambition to reach net-zero greenhouse gas emissions by 2050 or sooner.

How much did Ross Stores, Inc. invest in capital projects in 2024?

The company invested approximately $720 million in capital projects during 2024, including $364 million for new locations and store enhancements and $356 million for distribution, information technology, and other projects.

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.