Ross Stores, Inc. (NASDAQ: ROST) has reported its second quarter earnings for the 13 weeks ended August 3, 2024. The company's earnings per share for this period were $1.59, representing a significant increase from the earnings per share of $1.32 for the same period in 2023. Net income also saw a substantial rise, reaching $527 million in 2024, compared to $446 million in 2023.
Total sales for the 2024 second quarter increased by 7% to $5.3 billion, up from $4.9 billion for the same period in 2023. Comparable store sales were up 4% compared to last year.
For the six months ended August 3, 2024, Ross Stores reported earnings per share of $3.05 on net income of $1.0 billion. This marks a noticeable increase from the earnings per share of $2.41 on net earnings of $818 million in the first half of 2023. Sales for the first six months of 2024 grew to $10.1 billion, up from $9.4 billion in the prior year. Comparable store sales for the first half of 2024 were up 3%.
Barbara Rentler, Chief Executive Officer, highlighted that second quarter sales and earnings were above expectations, with operating margin increasing by 115 basis points to 12.5% compared to the prior year period. The company's improved profitability relative to last year was attributed to higher sales and lower distribution and incentive costs, partially offset by lower merchandise margins.
During the second quarter of fiscal 2024, a total of 1.8 million shares of common stock were repurchased for an aggregate price of $262 million. The company remains on track to buy back a total of $1.05 billion in common stock during fiscal 2024.
Looking ahead, Ross Stores provided updated guidance for the second half and fiscal year 2024. The company is planning comparable sales growth of 2% to 3% for both the third and fourth quarters. Based on these sales projections, earnings per share for the third quarter are projected to be $1.35 to $1.41, and $1.60 to $1.67 for the fourth quarter. For the 52 weeks ending February 1, 2025, the company expects earnings per share to be in the range of $6.00 to $6.13, compared to $5.56 in the previous year.
Ms. Rentler emphasized the company's focus on providing quality branded bargains to maximize prospects for ongoing market share gains, particularly in light of the continued pressures faced by off-price customers from high costs on necessities.
Ross Stores, Inc. will host a conference call on Thursday, August 22, 2024, to provide additional details concerning its second quarter results and management’s outlook for the second half and fiscal year 2024. Following these announcements, the company's shares moved -0.9%, and are now trading at a price of $152.52. For more information, read the company's full 8-K submission here.
