US’ Ross Stores reports net income of $1.5 bn in FY22

For the fourth quarter (Q4) of FY22, Ross Stores reported earnings per share of $1.31 on net income of $447 million, an increase from earnings per share of $1.04 on net income of $367 million in the same period in the prior year. Sales for Q4 FY22 were $5.2 billion, with comparable store sales up 1 per cent on top of a 9 per cent increase for the same period in FY21.

Ross Stores has posted a net income of $1.5 billion and sales of $18.7 billion in FY22, a slight decrease from $1.7 billion and $18.8 billion in the previous fiscal. The company’s earnings per share declined to $4.38, compared to $4.87 in FY21. Comparable store sales saw a 4 per cent decline, in contrast to the significant 13 per cent gain in the prior year.

Ross Stores’ operating margin in Q4 FY22 was 10.7 per cent compared to 9.8 per cent in FY21.

Looking ahead, Ross Stores expects comparable store sales for FY23 to remain relatively flat, following a 4 per cent decline in FY22 and a 13 per cent gain in FY21. The company projects earnings per share to be in the range of $4.65 to $4.95.

However, the company also anticipates that elevated inflation will continue to impact its low-to-moderate income customers, leading to projected flat sales for the first quarter of FY23 ending April 29, 2023, compared to a 7 per cent decrease in the same period in FY22 and a 13 per cent gain in FY21. Ross Stores expects earnings per share for the first quarter of FY23 to be in the range of $0.99 to $1.05, up from $0.97 in the prior year.

“During a very competitive holiday season, fourth quarter sales and earnings exceeded our guidance due to customers’ positive response to our improved assortments and stronger value offerings,” said Barbara Rentler, chief executive officer.

Fibre2Fashion News Desk (DP)