Ross Stores (ROST.US) fourth quarter financial report shines, but forecast remains cautious. Inflation challenges still exist.

On the morning of March 6th Beijing time, Ross Stores (ROST.US) announced its financial performance for the fourth quarter and full year of 2023. The financial report shows that Ross Stores' net income for the fourth quarter increased from $447 million last year to $610 million, with total sales increasing by 15% to $6 billion compared to the same period last year. Comparable store sales have grown by 7% compared to the same period last year. Earnings per share were $1.82, higher than the $1.31 in the same period last year, and analysts had expected $1.65. For the full year of 2023, Ross Stores' earnings per share increased from $4.38 to $5.56. Net income for 2023 was $1.9 billion, with sales totaling $20.4 billion, higher than the $1.5 billion and $18.7 billion in sales for fiscal year 2022. Comparable store sales grew steadily by 5%. Looking ahead, Ross Stores expects earnings per share for the first quarter to be between $1.29 to $1.35, a 2% to 3% increase year-over-year, with analysts expecting $1.27. It also anticipates a 2%-3% increase in same-store sales for the first quarter, with analysts expecting a 3.31% growth. Full-year earnings are forecasted to be between $5.64 to $5.89 per share, compared to analysts' expectations of $5.92. Due to the continued impact of inflation on low to middle-income consumers, the discount retailer issued cautious guidance forecasts. Ross Stores CEO Barbara Rentler stated, "While we are encouraged by the sales momentum that began in the second quarter of 2023 and continued through the holiday season, there remains ongoing uncertainty in the macroeconomic and geopolitical environment." It is worth mentioning that the company's cash and cash equivalents increased by 7% to $4.87 billion. Inventory rose by 8% to $2.19 billion. Additionally, the company raised its quarterly dividend by 10% to $0.3675 per share and authorized a new $2.1 billion stock buyback program, representing an 11% increase from the recent acquisition. At the time of writing, Ross Stores (ROST.US) fell over 1% in after-hours trading, closing at $147.57.