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Ross Stores Reports Second Quarter Earnings
DUBLIN, CA — Ross Stores reported earnings per share for the 13 weeks ended August 2, 2025 of $1.56 on net income of $508 million.
Included in this year’s second quarter earnings is an approximate $0.11 per share negative impact from tariff-related costs. These results compare to earnings per share of $1.59 on net income of $527 million for the 13 weeks ended August 3, 2024. Total sales for the 2025 second quarter increased 5% to $5.5 billion, up from $5.3 billion for the same period in 2024, with comparable store sales up 2% versus last year.
For the six months ended August 2, 2025, earnings per share were $3.03 on net income of $987 million. These results compare to earnings per share of $3.05 on net earnings of $1.0 billion in the first half of 2024. Sales for the first six months of 2025 grew to $10.5 billion, up from $10.1 billion in the prior year. Comparable store sales for the first half of 2025 were up 1%.
Jim Conroy, Chief Executive Officer, commented, “We are encouraged by the sequential improvement in sales trends relative to the first quarter. During the second quarter, sales in May were strong and softened in June, before rebounding sharply in July. We were pleased to see the improved trend at the end of the quarter, particularly with the early sales performance related to the back-to-school selling season. We ended the period with second quarter sales in line with our expectations, while earnings modestly exceeded the high end of our guidance range, mainly due to lower-than-expected tariff-related costs. Operating margin for the quarter decreased 95 basis points to 11.5% compared to the prior year, primarily reflecting tariff-related costs.”
Fiscal 2025 Guidance
Looking ahead, Mr. Conroy commented, “We are encouraged by the tone of the business in the second quarter and feel we are well positioned as we begin the third quarter. However, given the uncertainty associated with the macroeconomic environment, we will maintain a somewhat cautious approach to planning our business for the balance of the year.”
Mr. Conroy continued, “For both the third and fourth quarters, we are planning comparable store sales growth of up 2% to 3%. If the second half of 2025 performs in line with these sales projections, earnings per share for the third quarter are projected to be $1.31 to $1.37 versus $1.48 last year, and $1.74 to $1.81 for the fourth quarter compared to $1.79 in 2024. These guidance ranges include an approximate $0.07 to $0.08 and $0.04 to $0.06 per share cost impact from the announced tariffs for the third and fourth quarters, respectively.”
Mr. Conroy added, “Based on our first half results and second half guidance, earnings per share for the 52 weeks ending January 31, 2026 are now planned to be in the range of $6.08 to $6.21 versus $6.32 last year. For fiscal 2025, we anticipate approximately $0.22 to $0.25 per share impact from announced trade policies. As a reminder, last year’s fourth quarter and full year’s results included a one-time benefit to earnings, equivalent to approximately $0.14 per share, related to the sale of a packaway facility.”
Mr. Conroy concluded, “We expect the current uncertainty in the macro and geopolitical environments to persist through the remainder of the year. In addition, we anticipate pricing across retail will move higher as we progress through the year, which will lead consumers to seek more value this Fall season. As a result, we remain intensely focused on delivering high-quality, branded merchandise at compelling price points to reinforce our value proposition and strengthen our competitive position to capture market share.”
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Ross Stores, Inc. |
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Condensed Consolidated Statements of Earnings |
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Three Months Ended |
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Six Months Ended |
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($000, except stores and per share data, unaudited) |
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August 2, 2025 |
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August 3, 2024 |
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August 2, 2025 |
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August 3, 2024 |
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Sales |
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$ |
5,529,152 |
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$ |
5,287,519 |
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$ |
10,514,123 |
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$ |
10,145,586 |
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Costs and Expenses |
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Cost of goods sold |
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4,002,167 |
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3,791,929 |
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7,583,533 |
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7,282,601 |
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Selling, general and administrative |
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888,711 |
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836,357 |
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1,685,846 |
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1,612,639 |
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Operating income |
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638,274 |
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659,233 |
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1,244,744 |
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1,250,346 |
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Interest income, net |
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(32,346 |
) |
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(43,350 |
) |
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(66,755 |
) |
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(89,300 |
) |
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Earnings before taxes |
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670,620 |
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702,583 |
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1,311,499 |
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1,339,646 |
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Provision for taxes on earnings |
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162,625 |
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175,435 |
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324,255 |
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324,508 |
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Net earnings |
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$ |
507,995 |
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$ |
527,148 |
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$ |
987,244 |
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$ |
1,015,138 |
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Earnings per share |
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Basic |
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$ |
1.57 |
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$ |
1.60 |
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$ |
3.05 |
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$ |
3.07 |
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Diluted |
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$ |
1.56 |
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$ |
1.59 |
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$ |
3.03 |
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$ |
3.05 |
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Weighted-average shares outstanding (000) |
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Basic |
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323,000 |
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329,392 |
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323,938 |
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330,325 |
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Diluted |
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324,796 |
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331,511 |
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325,909 |
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332,620 |
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Store count at end of period |
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2,233 |
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2,148 |
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2,233 |
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2,148 |
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Ross Stores, Inc. |
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Condensed Consolidated Balance Sheets |
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($000, unaudited) |
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August 2, 2025 |
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August 3, 2024 |
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Assets |
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Current Assets |
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Cash and cash equivalents |
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$ |
3,847,016 |
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$ |
4,668,137 |
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Accounts receivable |
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210,520 |
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181,918 |
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Merchandise inventory |
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2,608,485 |
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2,490,558 |
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Prepaid expenses and other |
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259,815 |
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254,370 |
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Total current assets |
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6,925,836 |
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7,594,983 |
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Property and equipment, net |
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3,906,340 |
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3,583,535 |
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Operating lease assets |
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3,374,582 |
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3,234,180 |
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Other long-term assets |
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288,761 |
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265,323 |
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Total assets |
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$ |
14,495,519 |
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$ |
14,678,021 |
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Liabilities and Stockholders’ Equity |
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Current Liabilities |
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Accounts payable |
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$ |
2,205,613 |
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$ |
2,217,227 |
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Accrued expenses and other |
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655,218 |
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639,703 |
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Current operating lease liabilities |
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716,162 |
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691,036 |
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Accrued payroll and benefits |
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315,893 |
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353,980 |
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Income taxes payable |
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— |
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23,266 |
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Current portion of long-term debt |
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499,122 |
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949,028 |
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Total current liabilities |
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4,392,008 |
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4,874,240 |
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Long-term debt |
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1,017,218 |
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1,513,826 |
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Non-current operating lease liabilities |
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2,835,481 |
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2,710,239 |
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Other long-term liabilities |
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279,258 |
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254,487 |
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Deferred income taxes |
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238,985 |
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194,697 |
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Commitments and contingencies |
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Stockholders’ Equity |
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5,732,569 |
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5,130,532 |
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Total liabilities and stockholders’ equity |
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$ |
14,495,519 |
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$ |
14,678,021 |
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Ross Stores, Inc. |
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Condensed Consolidated Statements of Cash Flows |
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Six Months Ended |
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($000, unaudited) |
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August 2, 2025 |
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August 3, 2024 |
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Cash Flows From Operating Activities |
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Net earnings |
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$ |
987,244 |
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$ |
1,015,138 |
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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Depreciation and amortization |
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242,337 |
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217,781 |
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Stock-based compensation |
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83,239 |
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78,468 |
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Deferred income taxes |
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51,945 |
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(1,541 |
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Change in assets and liabilities: |
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Merchandise inventory |
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(163,972 |
) |
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(298,338 |
) |
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Other current assets |
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(92,049 |
) |
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(81,363 |
) |
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Accounts payable |
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101,937 |
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271,582 |
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Other current liabilities |
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(83,135 |
) |
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(197,585 |
) |
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Income taxes |
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(54,139 |
) |
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(46,708 |
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Operating lease assets and liabilities, net |
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4,301 |
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6,962 |
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Other long-term, net |
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369 |
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(3,354 |
) |
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Net cash provided by operating activities |
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1,078,077 |
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961,042 |
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Cash Flows From Investing Activities |
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Additions to property and equipment |
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(409,105 |
) |
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(333,735 |
) |
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Net cash used in investing activities |
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(409,105 |
) |
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(333,735 |
) |
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Cash Flows From Financing Activities |
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Issuance of common stock related to stock plans |
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12,380 |
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12,418 |
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Treasury stock purchased |
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(64,420 |
) |
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(71,728 |
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Repurchase of common stock |
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(525,021 |
) |
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(524,979 |
) |
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Excise tax paid on repurchase of common stock |
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(9,443 |
) |
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— |
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Dividends paid |
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(265,637 |
) |
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(245,751 |
) |
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Payment of long-term debt |
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(700,000 |
) |
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— |
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Net cash used in financing activities |
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(1,552,141 |
) |
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(830,040 |
) |
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Net decrease in cash, cash equivalents, and restricted cash and cash equivalents |
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(883,169 |
) |
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(202,733 |
) |
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Cash, cash equivalents, and restricted cash and cash equivalents: |
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Beginning of period |
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4,796,462 |
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|
4,935,441 |
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End of period |
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$ |
3,913,293 |
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$ |
4,732,708 |
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Reconciliations: |
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Cash and cash equivalents |
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$ |
3,847,016 |
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$ |
4,668,137 |
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Restricted cash and cash equivalents included in prepaid expenses and other |
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|
17,232 |
|
|
|
14,851 |
|
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Restricted cash and cash equivalents included in other long-term assets |
|
|
49,045 |
|
|
|
49,720 |
|
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Total cash, cash equivalents, and restricted cash and cash equivalents: |
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$ |
3,913,293 |
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$ |
4,732,708 |
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Supplemental Cash Flow Disclosures |
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Interest paid |
|
$ |
35,939 |
|
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$ |
40,158 |
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Income taxes paid, net |
|
$ |
326,449 |
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|
$ |
372,756 |
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