Ross Stores Reports 9% Sales Increase in 10-K for Fiscal 2023

Ross Stores, Inc. has recently released its 10-K report, providing a comprehensive insight into the company's financial performance and operations. As an off-price retail apparel and home fashion store operator, Ross Stores, Inc. operates under the brand names Ross Dress for Less and dd's DISCOUNTS, catering to middle-income and moderate-income households in the United States. The company was incorporated in 1957 and is headquartered in Dublin, California.

In the 10-K report, Ross Stores, Inc. reported a 9.0% increase in sales for fiscal 2023, reaching $20.4 billion compared to $18.7 billion in fiscal 2022. Comparable store sales also grew by 5% in fiscal 2023. The company's long-term strategy includes opening additional stores, with a plan to open approximately 90 new stores in 2024. The total number of stores at the end of fiscal 2023 was 2,109, marking a 5% increase from the previous year.

The sales mix for fiscal 2023 was primarily driven by home accents and bed and bath products, which accounted for 26% of sales, followed by ladies' apparel at 23%, and men's apparel at 15%. The cost of goods sold increased by $0.9 billion in fiscal 2023, primarily due to the comparable store sales increase and higher sales from new store openings. However, the cost of goods sold as a percentage of sales decreased by approximately 195 basis points from fiscal 2022, mainly due to improved merchandise margin.

Selling, general and administrative expenses ("SG&A") increased by $508.4 million in fiscal 2023, primarily due to higher incentive compensation expense and store wages. The company expects lower incentive compensation expense in fiscal 2024, which is anticipated to return to target levels.

In terms of financial condition, Ross Stores, Inc. reported net cash provided by operating activities of $2.5 billion in fiscal 2023, driven by net earnings excluding non-cash expenses for depreciation, amortization, and stock-based compensation. The company also invested $762.8 million in fiscal 2023 for capital expenditures, including the construction of new stores, distribution centers, and information technology projects.

The financing activities of Ross Stores, Inc. included stock repurchases under its stock repurchase programs and dividend payments. The company's Board of Directors approved a new two-year program to repurchase up to $2.1 billion of the company’s common stock through fiscal 2025.

As a result of these announcements, the company's shares have moved -0.9% on the market, and are now trading at a price of $143.78. If you want to know more, read the company's complete 10-K report here.

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