Wed, Sep 11, 10:01 AM (101 days ago)
Ross Stores, Inc. reported strong financial results for the second quarter ending August 3, 2024, with sales reaching $5,288 million, a 7.1% increase from the previous year. Net earnings for the quarter rose to $527 million, translating to diluted earnings per share of $1.59, up from $1.32. The gross profit margin improved, with cost of goods sold decreasing as a percentage of sales, driven by lower distribution and buying costs. The company opened 24 new stores in the quarter, contributing to a total of 2,148 locations. Cash flow from operations was robust at $961 million, although down from $1,116 million in the prior year due to higher incentive compensation payments. Investing activities amounted to $334 million, primarily for capital expenditures, while financing activities included significant stock repurchases totaling $525 million. Looking ahead, Ross Stores faces challenges from economic pressures on its customer base and plans to manage inventory and expenses carefully. The company maintains a strong liquidity position with $4.7 billion in cash and no outstanding borrowings under its credit facility, positioning it well for future growth despite market uncertainties.