Ross Stores comparable sales gained in its fourth quarter, but earnings came up short year over year while still beating a Wall Street estimate.
Ross earnings per share were $1.79 versus $1.82 per share for the year-prior quarter with net earnings at $586.8 million versus $609.7 million in the year-before quarter.
An analyst consensus estimate from Zacks Investment Research called for earnings per diluted share of $1.65 and revenue of $5.95 billion.
Sales were $5.91 billion versus $6.02 billion in the year-prior period, with comparable sales gaining 3%. Operating income was $731 million versus $744.1 million in the year-earlier period, the company reported.
For the full fiscal year, earnings per share were $6.32 versus $5.56, and net earnings were at $2.09 billion versus $1.87 billion in the year before.
Sales were $21.13 billion versus $20.38 billion in the year prior, the company maintained. Operating income was $2.59 billion versus $2.31 billion in the year earlier.
Fourth-quarter and full-year Ross results included a one-time benefit to earnings, equivalent to 14 cents per share, related to the sale of a pack-away facility. In addition, sales and earnings results for the 2023 fourth quarter and fiscal year included $308 million in sales and a 20 cents in earnings per share benefit from a 53rd week.
Jim Conroy, Ross Stores CEO, said, “Fourth-quarter sales and earnings results were at the high end of our expectations. Sales benefited from customers’ positive responses to our improved assortments of quality branded bargains throughout our stores during the critical holiday selling season. Fourth quarter operating margin of 12.4% was flat to last year. The benefit from the previously mentioned pack-away facility sale was offset by planned declines in merchandise margin and unfavorable timing of pack-away-related costs. The sale of the facility contributed about 105 basis points to this year’s fourth quarter operating margin while the 53rd week benefited the prior year’s period by about 80 basis points.”
