Q3 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$120.15Last close (Nov 16, 2023)
Post-Earnings Price$127.12Open (Nov 17, 2023)
Price Change
$6.97(+5.80%)
- Ross Stores experienced broad-based performance across geographies and income demographics, with traffic being the primary driver of a comparable store sales gain of 5%. This indicates strong customer engagement and appeal across different regions and income levels.
- Footwear was one of the best-performing categories, with shoes performing well across all types. This highlights the company's strong product assortment and ability to meet customer demand in key categories.
- dd's DISCOUNTS showed improved sales trends during the quarter, performing in line with Ross, as customers responded to the broad assortment of values offered, and easing inflation helped their customers. This demonstrates the company's strength across different store formats and potential for continued growth.
- Management maintained a cautious outlook for Q4, citing macroeconomic volatility, a promotional retail environment, geopolitical uncertainties, and tough sales comparisons, indicating potential headwinds for the company's performance. ,
- Key merchandise categories like apparel and home are underperforming, with both trailing the chain average, suggesting challenges in these important areas. ,
- Margin benefits from lower ocean freight costs are expected to moderate in Q4, potentially limiting further margin expansion; additionally, higher incentive compensation is increasing costs, offsetting some of the benefits from lower freight expenses. , ,