Ross Stores reported accelerated growth in Q4 FY2025, with sales and earnings significantly exceeding expectations due to strong customer engagement and improved in-store execution. The company ended the fiscal year with record sales and a robust comparable store sales increase, positioning it well for continued profitable growth in FY2026.
Total sales for the fourth quarter of fiscal 2025 grew 12% to $6.6 billion, with comparable store sales increasing a robust 9%.
positiveFourth quarter earnings per share of $2.00 was well above guidance of $1.77 to $1.85.
positiveFull year sales reached a record $22.8 billion, with comparable store sales growth of 5%.
positiveAnnounced a new two-year $2.55 billion stock repurchase authorization, a 21% increase over the prior program.
positiveIncreased quarterly cash dividend by 10% to $0.445 per share.
positiveMerchandise inventory increased to $2.63 billion from $2.44 billion YoY, a 7.6% increase outpacing sales growth.
attentionFull year earnings per share of $6.61 was only up 3.3% from $6.32 in the prior year, despite an 8% increase in total sales.
attentionFull year net income of $2.1 billion was similar to the prior year's $2.09 billion, indicating limited profit growth.
attentionFull year provision for taxes on earnings increased to $697 million from $666 million, a higher rate of increase than net earnings.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Business momentum accelerated further in the fourth quarter, with both sales and earnings significantly surpassing our expectations.
Throughout the holiday season, we delivered compelling merchandise assortments to our stores, benefited from higher customer engagement through our new marketing campaigns, and executed in-store initiatives that enhanced the customer experience.
For the full year, we delivered a solid performance. While the first half presented challenges amid a dynamic macroeconomic environment, including the impact of tariffs and broader consumer uncertainty, we remained focused on executing our strategy and managing the business with discipline.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.