Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Oct. 28, 2023 | Nov. 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 28, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-14678 | |
Entity Registrant Name | Ross Stores, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-1390387 | |
Entity Address, Address Line One | 5130 Hacienda Drive, | |
Entity Address, City or Town | Dublin, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94568-7579 | |
City Area Code | (925) | |
Local Phone Number | 965-4400 | |
Title of 12(b) Security | Common stock, | |
Trading Symbol | ROST | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 336,666,266 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000745732 | |
Current Fiscal Year End Date | --02-03 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Income Statement [Abstract] | ||||
Sales | $ 4,924,849 | $ 4,565,489 | $ 14,354,440 | $ 13,481,598 |
Costs and Expenses | ||||
Cost of goods sold | 3,564,268 | 3,424,046 | 10,426,241 | 10,020,027 |
Selling, general and administrative | 810,470 | 693,367 | 2,364,590 | 2,029,926 |
Interest (income) expense, net | (43,319) | (2,802) | (111,930) | 25,561 |
Total costs and expenses | 4,331,419 | 4,114,611 | 12,678,901 | 12,075,514 |
Earnings before taxes | 593,430 | 450,878 | 1,675,539 | 1,406,084 |
Provision for taxes on earnings | 146,103 | 108,842 | 410,702 | 341,086 |
Net earnings | $ 447,327 | $ 342,036 | $ 1,264,837 | $ 1,064,998 |
Earnings per share | ||||
Basic (in dollars per share) | $ 1.34 | $ 1 | $ 3.76 | $ 3.09 |
Diluted (in dollars per share) | $ 1.33 | $ 1 | $ 3.74 | $ 3.08 |
Weighted-average shares outstanding (000) | ||||
Basic (in shares) | 334,282 | 342,120 | 336,187 | 344,686 |
Diluted (in shares) | 336,261 | 343,720 | 338,107 | 346,212 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 447,327 | $ 342,036 | $ 1,264,837 | $ 1,064,998 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive income | $ 447,327 | $ 342,036 | $ 1,264,837 | $ 1,064,998 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Current Assets | |||
Cash and cash equivalents | $ 4,499,497 | $ 4,551,876 | $ 3,906,490 |
Accounts receivable | 171,915 | 145,694 | 168,483 |
Merchandise inventory | 2,613,808 | 2,023,495 | 2,494,002 |
Prepaid expenses and other | 206,725 | 183,654 | 192,214 |
Total current assets | 7,491,945 | 6,904,719 | 6,761,189 |
Property and Equipment | |||
Land and buildings | 1,491,023 | 1,495,006 | 1,491,927 |
Fixtures and equipment | 4,109,947 | 3,961,733 | 3,882,127 |
Leasehold improvements | 1,503,769 | 1,433,647 | 1,402,653 |
Construction-in-progress | 569,995 | 319,319 | 171,185 |
Property and equipment, gross | 7,674,734 | 7,209,705 | 6,947,892 |
Less accumulated depreciation and amortization | 4,277,215 | 4,028,178 | 3,939,154 |
Property and equipment, net | 3,397,519 | 3,181,527 | 3,008,738 |
Operating lease assets | 3,160,017 | 3,098,134 | 3,101,882 |
Other long-term assets | 221,139 | 232,083 | 228,286 |
Total assets | 14,270,620 | 13,416,463 | 13,100,095 |
Current Liabilities | |||
Accounts payable | 2,280,278 | 2,009,924 | 1,927,757 |
Accrued expenses and other | 665,279 | 638,561 | 616,753 |
Current operating lease liabilities | 680,088 | 655,976 | 656,837 |
Accrued payroll and benefits | 509,484 | 279,710 | 251,479 |
Income taxes payable | 20,960 | 52,075 | 11,404 |
Current portion of long-term debt | 249,598 | 0 | 0 |
Total current liabilities | 4,405,687 | 3,636,246 | 3,464,230 |
Long-term debt | 2,210,073 | 2,456,510 | 2,455,460 |
Non-current operating lease liabilities | 2,640,068 | 2,593,961 | 2,596,221 |
Other long-term liabilities | 218,970 | 224,104 | 223,162 |
Deferred income taxes | 212,866 | 217,059 | 214,022 |
Commitments and contingencies | |||
Stockholders’ Equity | |||
Common stock, par value $.01 per share Authorized 1,000,000,000 shares Issued and outstanding 336,952,000, 342,753,000 and 344,808,000 shares, respectively | 3,370 | 3,428 | 3,448 |
Additional paid-in capital | 1,920,908 | 1,820,249 | 1,793,265 |
Treasury stock | (633,318) | (584,750) | (581,267) |
Retained earnings | 3,291,996 | 3,049,656 | 2,931,554 |
Total stockholders’ equity | 4,582,956 | 4,288,583 | 4,147,000 |
Total liabilities and stockholders’ equity | $ 14,270,620 | $ 13,416,463 | $ 13,100,095 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 336,952,000 | 342,753,000 | 344,808,000 |
Common stock, shares outstanding (in shares) | 336,952,000 | 342,753,000 | 344,808,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Treasury stock | Retained earnings |
Beginning balance (in shares) at Jan. 29, 2022 | 351,720 | ||||
Beginning balance at Jan. 29, 2022 | $ 4,060,050 | $ 3,517 | $ 1,717,530 | $ (535,895) | $ 2,874,898 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 338,445 | 338,445 | |||
Common stock issued under stock plans, net of shares used for tax withholding (in shares) | 1,131 | ||||
Common stock issued under stock plans, net of shares used for tax withholding | (32,196) | $ 11 | 5,906 | (38,113) | |
Stock-based compensation | 36,071 | 36,071 | |||
Common stock repurchased, inclusive of excise tax (in shares) | (2,524) | ||||
Common stock repurchased, inclusive of excise tax | (239,565) | $ (25) | (10,266) | (229,274) | |
Dividends declared | (108,908) | (108,908) | |||
Ending balance (in shares) at Apr. 30, 2022 | 350,327 | ||||
Ending balance at Apr. 30, 2022 | 4,053,897 | $ 3,503 | 1,749,241 | (574,008) | 2,875,161 |
Beginning balance (in shares) at Jan. 29, 2022 | 351,720 | ||||
Beginning balance at Jan. 29, 2022 | 4,060,050 | $ 3,517 | 1,717,530 | (535,895) | 2,874,898 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | $ 1,064,998 | ||||
Common stock repurchased, inclusive of excise tax (in shares) | (8,200) | ||||
Ending balance (in shares) at Oct. 29, 2022 | 344,808 | 344,808 | |||
Ending balance at Oct. 29, 2022 | $ 4,147,000 | $ 3,448 | 1,793,265 | (581,267) | 2,931,554 |
Beginning balance (in shares) at Apr. 30, 2022 | 350,327 | ||||
Beginning balance at Apr. 30, 2022 | 4,053,897 | $ 3,503 | 1,749,241 | (574,008) | 2,875,161 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 384,517 | 384,517 | |||
Common stock issued under stock plans, net of shares used for tax withholding (in shares) | 153 | ||||
Common stock issued under stock plans, net of shares used for tax withholding | 5,454 | $ 1 | 5,974 | (521) | |
Stock-based compensation | 26,803 | 26,803 | |||
Common stock repurchased, inclusive of excise tax (in shares) | (2,928) | ||||
Common stock repurchased, inclusive of excise tax | (235,435) | $ (29) | (12,594) | (222,812) | |
Dividends declared | (108,285) | (108,285) | |||
Ending balance (in shares) at Jul. 30, 2022 | 347,552 | ||||
Ending balance at Jul. 30, 2022 | 4,126,951 | $ 3,475 | 1,769,424 | (574,529) | 2,928,581 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 342,036 | 342,036 | |||
Common stock issued under stock plans, net of shares used for tax withholding (in shares) | 47 | ||||
Common stock issued under stock plans, net of shares used for tax withholding | (332) | $ 1 | 6,405 | (6,738) | |
Stock-based compensation | 29,493 | 29,493 | |||
Common stock repurchased, inclusive of excise tax (in shares) | (2,791) | ||||
Common stock repurchased, inclusive of excise tax | (243,693) | $ (28) | (12,057) | (231,608) | |
Dividends declared | $ (107,455) | (107,455) | |||
Ending balance (in shares) at Oct. 29, 2022 | 344,808 | 344,808 | |||
Ending balance at Oct. 29, 2022 | $ 4,147,000 | $ 3,448 | 1,793,265 | (581,267) | 2,931,554 |
Beginning balance (in shares) at Jan. 28, 2023 | 342,753 | 342,753 | |||
Beginning balance at Jan. 28, 2023 | $ 4,288,583 | $ 3,428 | 1,820,249 | (584,750) | 3,049,656 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 371,191 | 371,191 | |||
Common stock issued under stock plans, net of shares used for tax withholding (in shares) | 461 | ||||
Common stock issued under stock plans, net of shares used for tax withholding | (31,373) | $ 4 | 6,145 | (37,522) | |
Stock-based compensation | 33,063 | 33,063 | |||
Common stock repurchased, inclusive of excise tax (in shares) | (2,169) | ||||
Common stock repurchased, inclusive of excise tax | (236,274) | $ (22) | (9,729) | (226,523) | |
Dividends declared | (114,794) | (114,794) | |||
Ending balance (in shares) at Apr. 29, 2023 | 341,045 | ||||
Ending balance at Apr. 29, 2023 | $ 4,310,396 | $ 3,410 | 1,849,728 | (622,272) | 3,079,530 |
Beginning balance (in shares) at Jan. 28, 2023 | 342,753 | 342,753 | |||
Beginning balance at Jan. 28, 2023 | $ 4,288,583 | $ 3,428 | 1,820,249 | (584,750) | 3,049,656 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | $ 1,264,837 | ||||
Common stock repurchased, inclusive of excise tax (in shares) | (6,400) | ||||
Ending balance (in shares) at Oct. 28, 2023 | 336,952 | 336,952 | |||
Ending balance at Oct. 28, 2023 | $ 4,582,956 | $ 3,370 | 1,920,908 | (633,318) | 3,291,996 |
Beginning balance (in shares) at Apr. 29, 2023 | 341,045 | ||||
Beginning balance at Apr. 29, 2023 | 4,310,396 | $ 3,410 | 1,849,728 | (622,272) | 3,079,530 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 446,319 | 446,319 | |||
Common stock issued under stock plans, net of shares used for tax withholding (in shares) | 89 | ||||
Common stock issued under stock plans, net of shares used for tax withholding | 5,296 | $ 1 | 6,208 | (913) | |
Stock-based compensation | 39,429 | 39,429 | |||
Common stock repurchased, inclusive of excise tax (in shares) | (2,152) | ||||
Common stock repurchased, inclusive of excise tax | (232,693) | $ (21) | (9,959) | (222,713) | |
Dividends declared | (114,005) | (114,005) | |||
Ending balance (in shares) at Jul. 29, 2023 | 338,982 | ||||
Ending balance at Jul. 29, 2023 | 4,454,742 | $ 3,390 | 1,885,406 | (623,185) | 3,189,131 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net earnings | 447,327 | 447,327 | |||
Common stock issued under stock plans, net of shares used for tax withholding (in shares) | 34 | ||||
Common stock issued under stock plans, net of shares used for tax withholding | (3,901) | $ 1 | 6,231 | (10,133) | |
Stock-based compensation | 38,877 | 38,877 | |||
Common stock repurchased, inclusive of excise tax (in shares) | (2,064) | ||||
Common stock repurchased, inclusive of excise tax | (240,756) | $ (21) | (9,606) | (231,129) | |
Dividends declared | $ (113,333) | (113,333) | |||
Ending balance (in shares) at Oct. 28, 2023 | 336,952 | 336,952 | |||
Ending balance at Oct. 28, 2023 | $ 4,582,956 | $ 3,370 | $ 1,920,908 | $ (633,318) | $ 3,291,996 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | ||||||||||
Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Mar. 31, 2022 | Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Dividends declared (in dollars per share) | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.310 | $ 0.310 | $ 0.310 | $ 0.310 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.310 | $ 0.310 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 28, 2023 | Oct. 29, 2022 | |
Cash Flows From Operating Activities | ||
Net earnings | $ 1,264,837 | $ 1,064,998 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 300,366 | 290,565 |
Stock-based compensation | 111,369 | 92,367 |
Deferred income taxes | (4,193) | 76,380 |
Change in assets and liabilities: | ||
Merchandise inventory | (590,313) | (231,729) |
Other current assets | (48,803) | (72,079) |
Accounts payable | 259,105 | (452,968) |
Other current liabilities | 284,989 | (308,202) |
Income taxes | (25,524) | 3,397 |
Operating lease assets and liabilities, net | 8,336 | 8,634 |
Other long-term, net | 5,566 | 1,304 |
Net cash provided by operating activities | 1,565,735 | 472,667 |
Cash Flows From Investing Activities | ||
Additions to property and equipment | (540,458) | (417,901) |
Net cash used in investing activities | (540,458) | (417,901) |
Cash Flows From Financing Activities | ||
Issuance of common stock related to stock plans | 18,590 | 18,298 |
Treasury stock purchased | (48,568) | (45,372) |
Repurchase of common stock | (703,400) | (718,693) |
Dividends paid | (342,132) | (324,648) |
Net cash used in financing activities | (1,075,510) | (1,070,415) |
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents | (50,233) | (1,015,649) |
Cash, cash equivalents, and restricted cash and cash equivalents: | ||
Beginning of period | 4,612,241 | 4,982,382 |
End of period | 4,562,008 | 3,966,733 |
Supplemental Cash Flow Disclosures | ||
Interest paid | 80,316 | 80,316 |
Income taxes paid | $ 440,419 | $ 261,309 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the “Company”) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company’s financial position as of October 28, 2023 and October 29, 2022, and the results of operations, comprehensive income, and stockholders’ equity for the three and nine month periods ended October 28, 2023 and October 29, 2022, and the cash flows for the nine month periods ended October 28, 2023 and October 29, 2022. The Condensed Consolidated Balance Sheet as of January 28, 2023, presented herein, has been derived from the Company’s audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023. The results of operations, comprehensive income, and stockholders’ equity for the three and nine month periods ended October 28, 2023 and October 29, 2022, and the cash flows for the nine month periods ended October 28, 2023 and October 29, 2022 pr esented herein are not necessarily indicative of the results to be expected for the full fiscal ye ar. The fiscal year ending February 3, 2024 is referred to as fiscal 2023 and is a 53-week year. The fiscal year ended January 28, 2023 is referred to as fiscal 2022 and was a 52-week year. Recently adopted accounting standards. In September 2022, the FASB issued Accounting Standards Update (ASU) 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , to enhance transparency about an entity’s use of supplier finance programs. The ASU requires enhanced and additional disclosures about the key terms of supplier finance programs including a description of where in the financial statements any related amounts are presented. The Company adopted ASU 2022-04 in the first quarter of fiscal 2023 on a retrospective basis, excluding the rollforward requirements which will be adopted in fiscal 2024 on a prospective basis. T he adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements for the three and nine month periods ended October 28, 2023 and is not expected to have a material impact on the Company’s fiscal 2023 financial statements. Use of accounting estimates. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from the Company’s estimates. The Company’s significant accounting estimates include valuation reserves for inventory, packaway and other inventory carrying costs, useful lives of fixed assets, insurance reserves, reserves for uncertain tax positions, and legal claims. Revenue recognition. The following sales mix table disaggregates revenue by merchandise category for the three and nine month periods ended October 28, 2023 and October 29, 2022: Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Home Accents and Bed and Bath 25 % 25 % 25 % 25 % Ladies 23 % 25 % 24 % 25 % Men’s 16 % 15 % 15 % 15 % Accessories, Lingerie, Fine Jewelry, and Cosmetics 14 % 13 % 14 % 13 % Shoes 13 % 13 % 13 % 13 % Children’s 9 % 9 % 9 % 9 % Total 100 % 100 % 100 % 100 % Cash and cash equivalents. Cash equivalents consist of highly liquid, fixed income instruments purchased with an original maturity of three months or less. The institutions where these instruments are held could potentially subject the Company to concentrations of credit risk. The Company manages its risk associated with these instruments primarily by holding its cash and cash equivalents across a highly diversified set of banks and other financial institutions. Restricted cash and cash equivalents. Restricted cash and cash equivalents serve as collateral for certain insurance obligations. These restricted funds are invested in bank deposits, money market funds, and U.S. Government and agency securities and cannot be withdrawn from the Company’s account without the prior written consent of the secured parties. The classification between current and long-term is based on the timing of expected payments of the obligations. The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents $ 4,499,497 $ 4,551,876 $ 3,906,490 Restricted cash and cash equivalents included in: Prepaid expenses and other 13,127 12,677 11,446 Other long-term assets 49,384 47,688 48,797 Total restricted cash and cash equivalents 62,511 60,365 60,243 Total cash, cash equivalents, and restricted cash and cash equivalents $ 4,562,008 $ 4,612,241 $ 3,966,733 Property and equipment. As of October 28, 2023 and October 29, 2022, the Company had $47.0 million and $30.2 million, respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and equipment, Accounts payable, and Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. Operating leases. Supplemental cash flow disclosures related to operating lease assets obtained in exchange for operating lease liabilities (includes new leases and remeasurements or modifications of existing leases ) were as follows: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Operating lease assets obtained in exchange for operating lease liabilities $ 159,616 $ 235,186 $ 550,467 $ 549,267 Cash dividends. On November 15, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.335 per common share, payable on December 29, 2023. The Company’s Board of Directors declared a cash dividend of $0.335 per common share in February, May, and August 2023, and $0.310 per common share in March, May, August, and November 2022. Stock repurchase program. In March 2022, the Company’s Board of Directors approved a two-year program to repurchase up to $1.9 billion of the Company’s common stock through fiscal 2023. During the nine month period ended October 28, 2023, the Company repurchased 6.4 million shares of common stock for $703.4 million, excluding excise tax due under the Inflation Reduction Act of 2022. The Company repurchased 8.2 million shares of common stock for $718.7 million during the nine month period ended October 29, 2022. Litigation, claims, and assessments. Like many retailers, the Company has been named in class/representative action lawsuits, primarily in California, alleging violations by the Company of wage and hour laws. Class/representative action litigation remains pending as of October 28, 2023. The Company is also party to various other legal and regulatory proceedings arising in the normal course of business. Actions filed against the Company may include commercial, product and product safety, consumer, intellectual property, environmental, and labor and employment-related claims, including lawsuits in which private plaintiffs or governmental agencies allege that the Company violated federal, state, and/or local laws. Actions against the Company are in various procedural stages. Many of these proceedings raise factual and legal issues and are subject to uncertainties. In the opinion of management, the resolution of currently pending class/representative action litigation and other currently pending legal and regulatory proceedings will not have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Supply chain finance program. The Company facilitates a voluntary supply chain finance program (the “program”) to provide certain suppliers with the opportunity to sell receivables due from the Company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. A third-party bank administers the program. The Company’s responsibility is limited to making payment on the terms originally negotiated with each supplier, regardless of whether a supplier sells its receivable to a financial institution. The Company is not a party to the agreements between the participating financial institutions and the suppliers in connection with the program and receives no financial incentives from the suppliers or the financial institutions. No guarantees are provided by the Company under the program and the Company’s rights and obligations to its suppliers are not affected by the program. The range of payment terms negotiated with a supplier is consistent, irrespective of whether a supplier participates in the program. All outstanding payments owed under the program are recorded within Accounts payable in the Condensed Consolidated Balance Sheets. The Company accounts for all payments made under the program as a reduction to operating cash flows in Accounts payable within the Condensed Consolidated Statements of Cash Flows. The amounts owed to a participating financial institution under the program and included in Accounts payable were $141.0 million, $119.2 million, and $128.0 million at October 28, 2023, January 28, 2023, and October 29, 2022, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions, maximize the use of observable inputs, and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company’s financial instruments are as follows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents (Level 1) $ 4,499,497 $ 4,551,876 $ 3,906,490 Restricted cash and cash equivalents (Level 1) $ 62,511 $ 60,365 $ 60,243 The underlying assets in the Company’s nonqualified deferred compensation program as of October 28, 2023, January 28, 2023, and October 29, 2022 (included in Other long-term assets and in Other long-term liabilities) primarily consist of participant-directed money market, stock, and bond funds. The fair value measurement for funds with quoted market prices in active markets (Level 1) are as follows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Level 1 $ 145,003 $ 155,496 $ 148,849 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Oct. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation For the three and nine month periods ended October 28, 2023 and October 29, 2022, the Company recognized stock-based compensation expense as follows: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Restricted stock $ 23,546 $ 22,177 $ 69,094 $ 63,337 Performance awards 14,232 6,186 38,994 25,800 Employee stock purchase plan 1,099 1,130 3,281 3,230 Total $ 38,877 $ 29,493 $ 111,369 $ 92,367 Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Earnings for the three and nine month periods ended October 28, 2023 and October 29, 2022 is as follows: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Cost of goods sold $ 20,254 $ 16,547 $ 58,885 $ 50,768 Selling, general and administrative 18,623 12,946 52,484 41,599 Total $ 38,877 $ 29,493 $ 111,369 $ 92,367 The tax benefits related to stock-based compensation expense for the three and nine month periods ended October 28, 2023 were $7.9 million and $23.2 million, respectively. The tax benefits related to stock-based compensation expense for the three and nine month periods ended October 29, 2022 were $6.1 million and $18.9 million, respectively. Restricted stock awards. The Company grants shares of restricted stock or restricted stock units to directors, officers, and key employees. The market value of shares of restricted stock and restricted stock units at the date of grant is amortized to expense over the vesting period of generally three Performance share awards. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock on a specified settlement date based on the Company’s attainment of a performance goal during the performance period, which is the Company’s fiscal year. If attained, the restricted stock then vests over a service period, generally three years from the date the performance award was granted. As of October 28, 2023, shares related to unvested restricted stock, restricted stock units, and performance share awards totaled 4.0 million shares. A summary of restricted stock, restricted stock units, and performance share award activity for the nine month period ended October 28, 2023, is presented below: (000, except per share data) Number of Weighted-average Unvested at January 28, 2023 3,943 $ 99.69 Awarded 1,276 109.52 Released (1,139) 95.98 Forfeited (68) 101.63 Unvested at October 28, 2023 4,012 $ 103.97 The unamortized compensation expense at October 28, 2023 was $199.0 million which is expected to be recognized over a weighted-average remaining period of 2.0 years. The unamortized compensation expense at October 29, 2022 was $213.6 million which was expected to be recognized over a weighted-average remaining period of 2.0 years. Shares repurchased for tax withholding are considered treasury shares which are available for reissuance. During the three and nine month periods ended October 28, 2023, shares purchased by the Company for tax withholding totaled 85,761 and 461,889, respectively. During the three and nine month periods ended October 29, 2022, shares purchased by the Company for tax withholding totaled 74,844 and 490,060, respectively. Employee stock purchase plan. Under the Employee Stock Purchase Plan (“ESPP”), eligible employees participating in the quarterly offering period can choose to have up to the lesser of 10% of their annual base earnings or the IRS annual share purchase limit of $25,000 in aggregate market value withheld to purchase the Company’s common stock. The purchase price of the stock is 85% of the closing market price on the date of purchase. Purchases occur on a quarterly basis (on the last trading day of each calendar quarter). The Company recognizes expense for ESPP purchase rights equal to the value of the 15% discount given on the purchase date. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes and reports both basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity plan awards and unvested shares of both performance and non-performance based awards of restricted stock and restricted stock units. For the three and nine month periods ended October 28, 2023, approximately 14,000 and 17,000 weighted-average shares were excluded from the calculation of diluted EPS, respectively, because their effect would have been anti-dilutive for the periods presented. For the three and nine month periods ended October 29, 2022, approximately 85,000 and 492,000 weighted-average shares were excluded from the calculation of diluted EPS, respectively, because their effect would have been anti-dilutive for the periods presented. The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations: Three Months Ended Nine Months Ended Shares in (000s) Basic EPS Effect of Diluted Basic EPS Effect of Diluted October 28, 2023 Shares 334,282 1,979 336,261 336,187 1,920 338,107 Amount $ 1.34 $ (0.01) $ 1.33 $ 3.76 $ (0.02) $ 3.74 October 29, 2022 Shares 342,120 1,600 343,720 344,686 1,526 346,212 Amount $ 1.00 $ — $ 1.00 $ 3.09 $ (0.01) $ 3.08 |
Debt
Debt | 9 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Notes. Unsecured senior debt (the “Senior Notes”), net of unamortized discounts and debt issuance costs, consisted of the following: ($000) October 28, 2023 January 28, 2023 October 29, 2022 3.375% Senior Notes due 2024 $ 249,598 $ 249,257 $ 249,144 4.600% Senior Notes due 2025 698,120 697,161 696,841 0.875% Senior Notes due 2026 496,960 496,038 495,732 4.700% Senior Notes due 2027 240,225 239,899 239,791 4.800% Senior Notes due 2030 132,732 132,602 132,559 1.875% Senior Notes due 2031 495,678 495,254 495,113 5.450% Senior Notes due 2050 146,358 146,299 146,280 Total long-term debt 1 $ 2,459,671 $ 2,456,510 $ 2,455,460 Less: current portion 249,598 — — Total due beyond one year $ 2,210,073 $ 2,456,510 $ 2,455,460 1 Net of unamortized discount and debt issuance costs of $15.3 million, $18.5 million, and $19.5 million as of October 28, 2023, January 28, 2023, and October 29, 2022, respectively. Interest on all Senior Notes is payable semi-annually and the Senior Notes are subject to prepayment penalties for early payment of principal. The aggregate fair value of the seven outstanding series of Senior Notes was approximately $2.2 billion as of October 28, 2023 and October 29, 2022, and approximately $2.3 billion as of January 28, 2023. The fair value is estimated by obtaining comparable market quotes which are considered to be Level 1 inputs under the fair value measurements and disclosures guidance. Revolving credit facilities. The Company’s $1.3 billion senior unsecured revolving credit facility (“Credit Facility”) expires in February 2027 and may be extended at the Company’s request for up to two additional one-year periods subject to customary conditions. The Credit Facility contains a $300 million sublimit for issuance of standby letters of credit. It also contains an option allowing the Company to increase the size of its Credit Facility by up to an additional $700 million, with the agreement of the committing lenders. Interest on borrowings under this Credit Facility is a term rate based on the Secured Overnight Financing Rate (“Term SOFR”) (or an alternate benchmark rate, if Term SOFR is no longer available) plus an applicable margin and is payable quarterly and upon maturity. The Credit Facility is subject to a quarterly Consolidated Adjusted Debt to Consolidated EBITDAR financial leverage ratio covenant. As of October 28, 2023, the Company was in compliance with the financial covenant, had no borrowings or standby letters of credit outstanding under the Credit Facility, and t he $1.3 billion Credit Facility remained in place and available. The table below shows the components of interest expense and income for the three and nine month periods ended October 28, 2023 and October 29, 2022: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Interest expense on long-term debt $ 21,159 $ 21,150 $ 63,458 $ 63,429 Other interest expense 424 448 1,169 1,242 Capitalized interest (3,342) (663) (8,268) (4,489) Interest income (61,560) (23,737) (168,289) (34,621) Interest (income) expense, net $ (43,319) $ (2,802) $ (111,930) $ 25,561 |
Taxes on Earnings
Taxes on Earnings | 9 Months Ended |
Oct. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Taxes on Earnings | Taxes on Earnings The Company’s effective tax rate for the three and nine month periods ended October 28, 2023 was approximately 25% compared to approximately 24% for the three and nine month periods ended October 29, 2022. The Company’s effective tax rate is impacted by changes in tax law and accounting guidance, location of new stores, level of earnings, tax effects associated with stock-based compensation, and uncertain tax positions. As of October 28, 2023, January 28, 2023, and October 29, 2022, the reserves for unrecognized tax benefits were $65.3 million, $60.6 million, and $70.7 million, inclusive of $8.4 million, $7.1 million, and $9.1 million of related interest and penalties, respectively. The Company accounts for interest and penalties related to unrecognized tax benefits as a part of its provision for taxes on earnings. If recognized, $52.2 million would impact the Company’s effective tax rate. It is reasonably possible that certain federal and state tax matters may be concluded or statutes of limitations may lapse during the next 12 months. Accordingly, the total amount of unrecognized tax benefits may decrease by up to $12.9 million. The difference between the total amount of unrecognized tax benefits and the amounts that would impact the effective tax rate relates to amounts attributable to deferred income tax assets and liabilities. These amounts are net of federal and state income taxes. The Company is open to audit by the Internal Revenue Service under the statute of limitations for fiscal years 2019 through 2022. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for fiscal years 2018 through 2022. Certain federal and state tax returns are currently under audit by various tax authorities. The Company does not expect the results of these audits to have a material impact on the condensed consolidated financial statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Apr. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net earnings | $ 447,327 | $ 446,319 | $ 371,191 | $ 342,036 | $ 384,517 | $ 338,445 | $ 1,264,837 | $ 1,064,998 |
Insider Trading Arrangements
Insider Trading Arrangements shares in Thousands | 9 Months Ended |
Oct. 28, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Michael J. Hartshorn [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | A Rule 10b5-1 Trading Plan that is intended to satisfy the affirmative defense of Rule 10b5-1(c) was adopted on October 6, 2023 by Michael J. Hartshorn, Group President and Chief Operating Officer, and a member of our Board of Directors. The trading plan has a duration of up to one year, and provides for the sale of up to 76,000 shares of the Company's common stock (prior to reduction for shares withheld for taxes). The number of shares that may be sold is also dependent in part on the number of shares that vest under specified restricted stock and performance share awards. |
Name | Michael J. Hartshorn |
Title | Group President and Chief Operating Officer, and a member of our Board of Directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | October 6, 2023 |
Arrangement Duration | 1 year |
Aggregate Available | 76 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the “Company”) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company’s financial position as of October 28, 2023 and October 29, 2022, and the results of operations, comprehensive income, and stockholders’ equity for the three and nine month periods ended October 28, 2023 and October 29, 2022, and the cash flows for the nine month periods ended October 28, 2023 and October 29, 2022. The Condensed Consolidated Balance Sheet as of January 28, 2023, presented herein, has been derived from the Company’s audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Company’s Annual Report on Form 10-K for the year ended January 28, 2023. The results of operations, comprehensive income, and stockholders’ equity for the three and nine month periods ended October 28, 2023 and October 29, 2022, and the cash flows for the nine month periods ended October 28, 2023 and October 29, 2022 pr esented herein are not necessarily indicative of the results to be expected for the full fiscal ye ar. The fiscal year ending February 3, 2024 is referred to as fiscal 2023 and is a 53-week year. The fiscal year ended January 28, 2023 is referred to as fiscal 2022 and was a 52-week year. |
Recently adopted accounting standards | Recently adopted accounting standards. In September 2022, the FASB issued Accounting Standards Update (ASU) 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , to enhance transparency about an entity’s use of supplier finance programs. The ASU requires enhanced and additional disclosures about the key terms of supplier finance programs including a description of where in the financial statements any related amounts are presented. The Company adopted ASU 2022-04 in the first quarter of fiscal 2023 on a retrospective basis, excluding the rollforward requirements which will be adopted in fiscal 2024 on a prospective basis. T he adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements for the three and nine month periods ended October 28, 2023 and is not expected to have a material impact on the Company’s fiscal 2023 financial statements. |
Use of accounting estimates | Use of accounting estimates. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from the Company’s estimates. The Company’s significant accounting estimates include valuation reserves for inventory, packaway and other inventory carrying costs, useful lives of fixed assets, insurance reserves, reserves for uncertain tax positions, and legal claims. |
Cash and cash equivalents and Restricted cash and cash equivalents | Cash and cash equivalents. Cash equivalents consist of highly liquid, fixed income instruments purchased with an original maturity of three months or less. The institutions where these instruments are held could potentially subject the Company to concentrations of credit risk. The Company manages its risk associated with these instruments primarily by holding its cash and cash equivalents across a highly diversified set of banks and other financial institutions. Restricted cash and cash equivalents. |
Property and equipment | Property and equipment. As of October 28, 2023 and October 29, 2022, the Company had $47.0 million and $30.2 million, respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and equipment, Accounts payable, and Accrued expenses and other in the accompanying Condensed Consolidated Balance Sheets. |
Supply chain finance program | Supply chain finance program. The Company facilitates a voluntary supply chain finance program (the “program”) to provide certain suppliers with the opportunity to sell receivables due from the Company to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. A third-party bank administers the program. The Company’s responsibility is limited to making payment on the terms originally negotiated with each supplier, regardless of whether a supplier sells its receivable to a financial institution. The Company is not a party to the agreements between the participating financial institutions and the suppliers in connection with the program and receives no financial incentives from the suppliers or the financial institutions. No guarantees are provided by the Company under the program and the Company’s rights and obligations to its suppliers are not affected by the program. The range of payment terms negotiated with a supplier is consistent, irrespective of whether a supplier participates in the program. |
Fair Value Measurements | Fair Value Measurements Accounting standards pertaining to fair value measurements establish a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions, maximize the use of observable inputs, and minimize the use of unobservable inputs when measuring fair value. Corporate, U.S. government and agency, and mortgage-backed securities are classified within Level 1 or Level 2 because these securities are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. |
Earnings Per Share | Earnings Per Share The Company computes and reports both basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the sum of the weighted-average number of common shares and dilutive common stock equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding equity plan awards and unvested shares of both performance and non-performance based awards of restricted stock and restricted stock units. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The following sales mix table disaggregates revenue by merchandise category for the three and nine month periods ended October 28, 2023 and October 29, 2022: Three Months Ended Nine Months Ended October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Home Accents and Bed and Bath 25 % 25 % 25 % 25 % Ladies 23 % 25 % 24 % 25 % Men’s 16 % 15 % 15 % 15 % Accessories, Lingerie, Fine Jewelry, and Cosmetics 14 % 13 % 14 % 13 % Shoes 13 % 13 % 13 % 13 % Children’s 9 % 9 % 9 % 9 % Total 100 % 100 % 100 % 100 % |
Schedule of cash and cash equivalents reconciliation | The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents $ 4,499,497 $ 4,551,876 $ 3,906,490 Restricted cash and cash equivalents included in: Prepaid expenses and other 13,127 12,677 11,446 Other long-term assets 49,384 47,688 48,797 Total restricted cash and cash equivalents 62,511 60,365 60,243 Total cash, cash equivalents, and restricted cash and cash equivalents $ 4,562,008 $ 4,612,241 $ 3,966,733 |
Schedule of restricted cash reconciliation | The following table provides a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents in the Condensed Consolidated Balance Sheets that reconcile to the amounts shown on the Condensed Consolidated Statements of Cash Flows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents $ 4,499,497 $ 4,551,876 $ 3,906,490 Restricted cash and cash equivalents included in: Prepaid expenses and other 13,127 12,677 11,446 Other long-term assets 49,384 47,688 48,797 Total restricted cash and cash equivalents 62,511 60,365 60,243 Total cash, cash equivalents, and restricted cash and cash equivalents $ 4,562,008 $ 4,612,241 $ 3,966,733 |
Supplemental cash flow disclosures related to leases | Supplemental cash flow disclosures related to operating lease assets obtained in exchange for operating lease liabilities (includes new leases and remeasurements or modifications of existing leases ) were as follows: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Operating lease assets obtained in exchange for operating lease liabilities $ 159,616 $ 235,186 $ 550,467 $ 549,267 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values of financial instruments | The fair value of the Company’s financial instruments are as follows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Cash and cash equivalents (Level 1) $ 4,499,497 $ 4,551,876 $ 3,906,490 Restricted cash and cash equivalents (Level 1) $ 62,511 $ 60,365 $ 60,243 |
Schedule of fair value of assets and liabilities | The fair value measurement for funds with quoted market prices in active markets (Level 1) are as follows: ($000) October 28, 2023 January 28, 2023 October 29, 2022 Level 1 $ 145,003 $ 155,496 $ 148,849 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense by award type | For the three and nine month periods ended October 28, 2023 and October 29, 2022, the Company recognized stock-based compensation expense as follows: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Restricted stock $ 23,546 $ 22,177 $ 69,094 $ 63,337 Performance awards 14,232 6,186 38,994 25,800 Employee stock purchase plan 1,099 1,130 3,281 3,230 Total $ 38,877 $ 29,493 $ 111,369 $ 92,367 |
Schedule of stock-based compensation recognized in Condensed Consolidated Statements of Earnings | Total stock-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Earnings for the three and nine month periods ended October 28, 2023 and October 29, 2022 is as follows: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Cost of goods sold $ 20,254 $ 16,547 $ 58,885 $ 50,768 Selling, general and administrative 18,623 12,946 52,484 41,599 Total $ 38,877 $ 29,493 $ 111,369 $ 92,367 |
Schedule of restricted stock, restricted stock units, and performance share award activity | A summary of restricted stock, restricted stock units, and performance share award activity for the nine month period ended October 28, 2023, is presented below: (000, except per share data) Number of Weighted-average Unvested at January 28, 2023 3,943 $ 99.69 Awarded 1,276 109.52 Released (1,139) 95.98 Forfeited (68) 101.63 Unvested at October 28, 2023 4,012 $ 103.97 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations | The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations: Three Months Ended Nine Months Ended Shares in (000s) Basic EPS Effect of Diluted Basic EPS Effect of Diluted October 28, 2023 Shares 334,282 1,979 336,261 336,187 1,920 338,107 Amount $ 1.34 $ (0.01) $ 1.33 $ 3.76 $ (0.02) $ 3.74 October 29, 2022 Shares 342,120 1,600 343,720 344,686 1,526 346,212 Amount $ 1.00 $ — $ 1.00 $ 3.09 $ (0.01) $ 3.08 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Oct. 28, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Unsecured senior debt (the “Senior Notes”), net of unamortized discounts and debt issuance costs, consisted of the following: ($000) October 28, 2023 January 28, 2023 October 29, 2022 3.375% Senior Notes due 2024 $ 249,598 $ 249,257 $ 249,144 4.600% Senior Notes due 2025 698,120 697,161 696,841 0.875% Senior Notes due 2026 496,960 496,038 495,732 4.700% Senior Notes due 2027 240,225 239,899 239,791 4.800% Senior Notes due 2030 132,732 132,602 132,559 1.875% Senior Notes due 2031 495,678 495,254 495,113 5.450% Senior Notes due 2050 146,358 146,299 146,280 Total long-term debt 1 $ 2,459,671 $ 2,456,510 $ 2,455,460 Less: current portion 249,598 — — Total due beyond one year $ 2,210,073 $ 2,456,510 $ 2,455,460 1 Net |
Schedule of components of interest expense and income | The table below shows the components of interest expense and income for the three and nine month periods ended October 28, 2023 and October 29, 2022: Three Months Ended Nine Months Ended ($000) October 28, 2023 October 29, 2022 October 28, 2023 October 29, 2022 Interest expense on long-term debt $ 21,159 $ 21,150 $ 63,458 $ 63,429 Other interest expense 424 448 1,169 1,242 Capitalized interest (3,342) (663) (8,268) (4,489) Interest income (61,560) (23,737) (168,289) (34,621) Interest (income) expense, net $ (43,319) $ (2,802) $ (111,930) $ 25,561 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total | 100% | 100% | 100% | 100% |
Home Accents and Bed and Bath | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 25% | 25% | 25% | 25% |
Ladies | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 23% | 25% | 24% | 25% |
Men’s | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 16% | 15% | 15% | 15% |
Accessories, Lingerie, Fine Jewelry, and Cosmetics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 14% | 13% | 14% | 13% |
Shoes | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 13% | 13% | 13% | 13% |
Children’s | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 9% | 9% | 9% | 9% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Cash, Cash Equivalents, Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 | Jan. 29, 2022 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 4,499,497 | $ 4,551,876 | $ 3,906,490 | |
Restricted cash and cash equivalents included in: | ||||
Prepaid expenses and other | 13,127 | 12,677 | 11,446 | |
Other long-term assets | 49,384 | 47,688 | 48,797 | |
Total restricted cash and cash equivalents | 62,511 | 60,365 | 60,243 | |
Total cash, cash equivalents, and restricted cash and cash equivalents | $ 4,562,008 | $ 4,612,241 | $ 3,966,733 | $ 4,982,382 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||
Nov. 15, 2023 | Aug. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Mar. 31, 2022 | Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Oct. 29, 2022 | Jul. 30, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.310 | $ 0.310 | $ 0.310 | $ 0.310 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.310 | $ 0.310 | ||||
Stock repurchased program period | 2 years | |||||||||||||||
Stock repurchase program, amount authorized | $ 1,900,000 | |||||||||||||||
Stock repurchased during period, shares (in shares) | 6.4 | 8.2 | ||||||||||||||
Repurchase of common stock | $ 703,400 | $ 718,693 | ||||||||||||||
Supply chain finance program, outstanding payments owed, included in accounts payable | $ 141,000 | $ 128,000 | 141,000 | 128,000 | $ 119,200 | |||||||||||
Subsequent Event | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.335 | |||||||||||||||
Property, Plant and Equipment | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Property and equipment purchased but not yet paid | $ 47,000 | $ 30,200 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Accounting Policies [Abstract] | ||||
Operating lease assets obtained in exchange for operating lease liabilities | $ 159,616 | $ 235,186 | $ 550,467 | $ 549,267 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Items (Details) - Level 1 - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents (Level 1) | $ 4,499,497 | $ 4,551,876 | $ 3,906,490 |
Restricted cash and cash equivalents (Level 1) | $ 62,511 | $ 60,365 | $ 60,243 |
Fair Value Measurements - Under
Fair Value Measurements - Underlying Asset Value (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total | $ 145,003 | $ 155,496 | $ 148,849 |
Stock-Based Compensation - Reco
Stock-Based Compensation - Recognized Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | $ 38,877 | $ 29,493 | $ 111,369 | $ 92,367 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | 23,546 | 22,177 | 69,094 | 63,337 |
Performance awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | 14,232 | 6,186 | 38,994 | 25,800 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total | $ 1,099 | $ 1,130 | $ 3,281 | $ 3,230 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Recognized in the Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 38,877 | $ 29,493 | $ 111,369 | $ 92,367 |
Cost of goods sold | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | 20,254 | 16,547 | 58,885 | 50,768 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total | $ 18,623 | $ 12,946 | $ 52,484 | $ 41,599 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tax benefit related to stock-based compensation | $ 7,900,000 | $ 6,100,000 | $ 23,200,000 | $ 18,900,000 | |
Plan participant's annual percentage ceiling for ESPP (up to, as a percentage) | 10% | 10% | |||
Plan participant's annual dollar amount ceiling for ESPP | $ 25,000 | ||||
Purchase price for shares under the ESPP (as a percentage) | 85% | ||||
Discount rate under the ESPP (as a percentage) | 15% | ||||
Restricted Stock, Restricted Stock Units, and Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested shares (in shares) | 4,012,000 | 4,012,000 | 3,943,000 | ||
Unamortized compensation expense | $ 199,000,000 | $ 213,600,000 | $ 199,000,000 | $ 213,600,000 | |
Unamortized compensation expense, remaining weighted-average period of recognition | 2 years | 2 years | |||
Treasury shares purchased for tax withholding and available for reissuance (in shares) | 85,761 | 74,844 | 461,889 | 490,060 | |
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period | 3 years | ||||
Minimum | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Minimum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Maximum | Restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years | ||||
Maximum | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 5 years |
Stock-Based Compensation - Unve
Stock-Based Compensation - Unvested Restricted Stock, RSU, and Performance Shares Activity (Details) - Restricted Stock, Restricted Stock Units, and Performance Shares shares in Thousands | 9 Months Ended |
Oct. 28, 2023 $ / shares shares | |
Number of shares | |
Beginning balance (in shares) | shares | 3,943 |
Awarded (in shares) | shares | 1,276 |
Released (in shares) | shares | (1,139) |
Forfeited (in shares) | shares | (68) |
Ending balance (in shares) | shares | 4,012 |
Weighted-average grant date fair value | |
Beginning balance (in dollars per share) | $ / shares | $ 99.69 |
Awarded (in dollars per share) | $ / shares | 109.52 |
Released (in dollars per share) | $ / shares | 95.98 |
Forfeited (in dollars per share) | $ / shares | 101.63 |
Ending balance (in dollars per share) | $ / shares | $ 103.97 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares excluded from calculation of diluted EPS (in shares) | 14 | 85 | 17 | 492 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted EPS Computations (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Earnings Per Share [Abstract] | ||||
Basic EPS, Shares (in shares) | 334,282 | 342,120 | 336,187 | 344,686 |
Basic EPS , Amount (in dollars per share) | $ 1.34 | $ 1 | $ 3.76 | $ 3.09 |
Effect of dilutive common stock equivalents, Shares (in shares) | 1,979 | 1,600 | 1,920 | 1,526 |
Effect of dilutive common stock equivalents, Amount (in dollars per share) | $ (0.01) | $ 0 | $ (0.02) | $ (0.01) |
Diluted EPS, Shares (in shares) | 336,261 | 343,720 | 338,107 | 346,212 |
Diluted EPS, Amount (in dollars per share) | $ 1.33 | $ 1 | $ 3.74 | $ 3.08 |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Oct. 28, 2023 | Jan. 28, 2023 | Oct. 29, 2022 |
Debt Instrument [Line Items] | |||
Total long-term debt1 | $ 2,459,671 | $ 2,456,510 | $ 2,455,460 |
Current portion of long-term debt | 249,598 | 0 | 0 |
Long-term debt | 2,210,073 | 2,456,510 | 2,455,460 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Total unamortized discount and debt issuance costs | $ 15,300 | 18,500 | 19,500 |
Senior Notes | 3.375% Senior Notes due 2024 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 3.375% | ||
Total long-term debt1 | $ 249,598 | 249,257 | 249,144 |
Senior Notes | 4.600% Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 4.60% | ||
Total long-term debt1 | $ 698,120 | 697,161 | 696,841 |
Senior Notes | 0.875% Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 0.875% | ||
Total long-term debt1 | $ 496,960 | 496,038 | 495,732 |
Senior Notes | 4.700% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 4.70% | ||
Total long-term debt1 | $ 240,225 | 239,899 | 239,791 |
Senior Notes | 4.800% Senior Notes due 2030 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 4.80% | ||
Total long-term debt1 | $ 132,732 | 132,602 | 132,559 |
Senior Notes | 1.875% Senior Notes due 2031 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 1.875% | ||
Total long-term debt1 | $ 495,678 | 495,254 | 495,113 |
Senior Notes | 5.450% Senior Notes due 2050 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 5.45% | ||
Total long-term debt1 | $ 146,358 | $ 146,299 | $ 146,280 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 9 Months Ended | ||
Oct. 28, 2023 USD ($) renewal_option note | Jan. 28, 2023 USD ($) note | Oct. 29, 2022 USD ($) note | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Number of series notes | note | 7 | 7 | 7 |
Senior Notes | Level 1 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes estimated fair value | $ 2,200,000,000 | $ 2,300,000,000 | $ 2,200,000,000 |
Senior Unsecured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,300,000,000 | ||
Number of renewal options | renewal_option | 2 | ||
Renewal option, term | 1 year | ||
Option to increase credit facility, additional amount (up to) | $ 700,000,000 | ||
Amount outstanding under the revolving credit facility | 0 | ||
Senior Unsecured Revolving Credit Facility | Standby Letters of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 300,000,000 | ||
Amount outstanding under the revolving credit facility | $ 0 |
Debt - Interest Expense, Net (D
Debt - Interest Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | |
Debt Disclosure [Abstract] | ||||
Interest expense on long-term debt | $ 21,159 | $ 21,150 | $ 63,458 | $ 63,429 |
Other interest expense | 424 | 448 | 1,169 | 1,242 |
Capitalized interest | (3,342) | (663) | (8,268) | (4,489) |
Interest income | (61,560) | (23,737) | (168,289) | (34,621) |
Interest (income) expense, net | $ (43,319) | $ (2,802) | $ (111,930) | $ 25,561 |
Taxes on Earnings - Narrative (
Taxes on Earnings - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 28, 2023 | Oct. 29, 2022 | Oct. 28, 2023 | Oct. 29, 2022 | Jan. 28, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate (percent) | 25% | 24% | 25% | 24% | |
Unrecognized tax benefits | $ 65.3 | $ 70.7 | $ 65.3 | $ 70.7 | $ 60.6 |
Income tax penalties and interest accrued | 8.4 | $ 9.1 | 8.4 | $ 9.1 | $ 7.1 |
Impact of recognizing taxes and interest related to unrecognized tax benefits | 52.2 | 52.2 | |||
Unrecognized tax benefits reduction resulting from conclusion of certain state tax matters or lapse of applicable statute of limitations (up to) | $ 12.9 | $ 12.9 |