$ROST (-3.84%) | Ross Stores Q3 Earnings Highlights:

🔹 Adjusted EPS: $1.48 (Est. $1.40) 🟢; UP +11% YoY

🔹 Revenue: $5.07B (Est. $5.15B) 😑; UP +3% YoY

🔹 Comparable Store Sales: +1% YoY

Q4 Guidance:

🔹 Revenue: $5.97B (Est. $5.97B) 🟡

🔹 Adjusted EPS: $1.57-$1.64 (Est. $1.67) 🔴

🔹 Comps: +2% to +3%

FY24 Guidance:

🔹 EPS: $6.10-$6.17 (Est. $6.00-$6.13) 🟢; UP +10-11% YoY

Key Metrics:

🔹 Operating Margin: 11.9% (Est. 11.1%) 🟢; UP from 11.2% last year

🔹 Merchandise Inventory: $2.86B; UP +9% YoY

Business Highlights:

🔸 Cost savings from lower freight, incentive, and distribution expenses supported margins.

🔸 Hurricanes and unseasonably warm weather impacted sales performance.

Capital Allocation:

🔹 Share Repurchases: 1.8M shares for $262M in Q3; on track for $1.05B in FY24 repurchases under the $2.1B two-year program.

🔹 Quarterly Dividend: $0.34 per share.

Management Commentary:

🔸 CEO Barbara Rentler:

"Sales slowed from earlier 2024 gains due to high costs pressuring discretionary spending and execution challenges in merchandising."

🔸 "Margins exceeded expectations, reflecting operational efficiencies."