Ross Stores said sales for the 3 months ended May 3, 2025 increased $126.9 million, or 2.6%, compared to the prior year period, citing the opening of 78 net new stores between May 4, 2024 and May 3, 2025 as the primary driver. It said operating income as a percentage of sales was flat compared to the prior year period.

10-QQuarterly reportFiled Jun 11, 2025Period of report May 3, 2025Summary published (UTC) Oct 11, 2026

Key points

AI summary

Ross Stores said sales for the 3 months ended May 3, 2025 increased $126.9 million, or 2.6%, compared to the prior year period, citing the opening of 78 net new stores between May 4, 2024 and May 3, 2025 as the primary driver. It said operating income as a percentage of sales was flat compared to the prior year period.
The company said cost of goods sold as a percentage of sales for Q1 was relatively flat compared to the prior year period, with merchandise margin declining 45 basis points, which it attributed to higher ocean freight costs and the initial impact of tariffs. Ross Stores said it expects merchandise margin to decrease as a percentage of sales in Q2 due to the impact from announced tariffs, with operating income also expected to decline as a percentage of sales compared to the prior year.
The company said diluted earnings per share for the 3 months ended May 3, 2025 was $1.47, compared to $1.46 for the prior year period, an increase of $0.01. It attributed this to a 2% reduction in weighted-average diluted shares outstanding, which was partially offset by approximately a 1% decrease in net earnings. Ross Stores said its effective tax rate was approximately 25% compared to approximately 23% for the prior year period.
Ross Stores said net cash provided by operating activities for the 3 months ended May 3, 2025 was $410 million, and net cash used in investing activities was $207 million. Net cash used in financing activities was $1.1 billion, which the company cited as primarily resulting from the repayment at maturity of $700 million principal amount of 4.600% Senior Notes in April 2025, stock repurchases, and dividend payments.

Key figures

Quarter ended May 3, 2025

Revenue: $5.0B
Operating income: $606M
Net income: $479M
EPS: $1.47
Operating cash flow: $410M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Sales and Operating Income Margin for Quarter Ended May 3, 2025

Ross Stores said sales for the 3 months ended May 3, 2025 increased $126.9 million, or 2.6%, compared to the prior year period, citing the opening of 78 net new stores between May 4, 2024 and May 3, 2025 as the primary driver. It said operating income as a percentage of sales was flat compared to the prior year period.

Source · Based on the MD&A text of the filing

Cost of Goods Sold Margin and Merchandise Margin Outlook for Q1 and Q2

The company said cost of goods sold as a percentage of sales for Q1 was relatively flat compared to the prior year period, with merchandise margin declining 45 basis points, which it attributed to higher ocean freight costs and the initial impact of tariffs. Ross Stores said it expects merchandise margin to decrease as a percentage of sales in Q2 due to the impact from announced tariffs, with operating income also expected to decline as a percentage of sales compared to the prior year.

Source · Based on the MD&A text of the filing

Diluted Earnings Per Share and Effective Tax Rate

The company said diluted earnings per share for the 3 months ended May 3, 2025 was $1.47, compared to $1.46 for the prior year period, an increase of $0.01. It attributed this to a 2% reduction in weighted-average diluted shares outstanding, which was partially offset by approximately a 1% decrease in net earnings. Ross Stores said its effective tax rate was approximately 25% compared to approximately 23% for the prior year period.

Source · Based on the MD&A text of the filing

Operating Cash Flow, Senior Notes Repayment, and Stock Repurchases

Ross Stores said net cash provided by operating activities for the 3 months ended May 3, 2025 was $410 million, and net cash used in investing activities was $207 million. Net cash used in financing activities was $1.1 billion, which the company cited as primarily resulting from the repayment at maturity of $700 million principal amount of 4.600% Senior Notes in April 2025, stock repurchases, and dividend payments.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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