Ross Stores Inc (0KXO.L) Q3 2024 Earnings Report

Ross Stores Inc reported solid profitability in QQ3 2024 with revenue of USD 5.071B, up 4.39% year-over-year and down 4.09% quarter-over-quarter. The gross margin stood at 28.34%, and operating margin near 11.9%, underscoring durable cost discipline within the off-price model. Net income of USD 488.8M and EPS of USD 1.48 reflect continued earnings power despite modest sequential pullbacks in revenue.

The company generated robust operating cash flow of USD 513.4M and delivered free cash flow of USD 333.0M, enabling meaningful capital allocation activity including a USD 285.7M share repurchase and USD 121.7M in dividends. Balance sheet liquidity remains strong with USD 4.35B of cash and equivalents and total debt of USD 5.73B, yielding a net debt position of USD 1.385B. Key liquidity and efficiency metrics show a healthy working capital profile: DSO around 3.1 days, DIO around 70.8 days, and a cash conversion cycle of about 15.8 days.

Looking ahead, management did not publish formal forward guidance in the provided data. Nevertheless, the off-price model historically provides resilience in consumer spending environments while continuing to emphasize inventory discipline, store productivity, and selective capital allocation. Investors should monitor macro consumer trends, competitive dynamics (notably TJX and other off-price peers), online penetration, and the company’s ability to sustain margin performance while expanding its footprint and omnichannel capabilities.