Ross Stores, Inc. has recently released its 10-Q report, providing an in-depth look into the company's financial performance and operations. Ross Stores, Inc. operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. As of May 4, 2024, the company had 1,775 Ross Dress for Less stores and 352 dd's DISCOUNTS stores in 43 states, the District of Columbia, and Guam. The company's stores primarily offer apparel, accessories, footwear, and home fashions at discounted prices.
In the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, Ross Stores, Inc. highlights its ongoing focus on offering customers the best branded values possible throughout its stores, despite ongoing macroeconomic and geopolitical uncertainties and prolonged inflationary pressures. The company is also carefully managing expenses and inventory while monitoring market share trends for the off-price industry.
In terms of financial results, Ross Stores, Inc. reported sales of $4.858 billion for the three-month period ended May 4, 2024, representing an 8.1% increase compared to the same period in the previous year. Comparable store sales grew by 13% during the same period. The cost of goods sold as a percentage of sales decreased approximately 140 basis points, primarily due to lower distribution costs and lower buying costs. Selling, general and administrative expenses as a percentage of sales decreased by 65 basis points, primarily due to higher sales and lower incentive compensation expense.
The company opened 18 new stores in the first quarter of fiscal 2024 and expects to open a total of approximately 90 new stores this year. Additionally, Ross Stores, Inc. repurchased 1.9 million shares of common stock for $262.5 million during the three-month period ended May 4, 2024, under its new two-year stock repurchase program.
As of May 4, 2024, the company had approximately $4.7 billion of unrestricted cash balances, primarily invested in overnight money market funds in U.S. treasury and government instruments across a highly diversified set of banks and financial institutions. Ross Stores, Inc. also has a $1.3 billion senior unsecured revolving credit facility, with no borrowings or standby letters of credit outstanding as of May 4, 2024.
As a result of these announcements, the company's shares have moved -0.1% on the market, and are now trading at a price of $144.39. For more information, read the company's full 10-Q submission here.
