ROST - Earnings call transcript Q3 2019

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Operator

Good afternoon, and welcome to the Ross Stores Third Quarter 2019 Earnings Release Conference Call. The call will begin with prepared comments by management, followed by question-and-answer session. [Operator Instructions]

Before we get started, on behalf of Ross Stores, I would like to note that the comments made on this call will contain forward-looking statements regarding expectations about future growth and financial results, including sales and earnings forecasts, new store openings, and other matters that are based on the company's current forecast of aspects of its future business. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations. SEC. in XX-K release XX-Q and on with included fiscal the and are file Form XXXX fiscal the factors today's and press company's X-Ks Risk XXXX Form

over Now, to Officer. I'd turn like the you, Rentler, Chief to Barbara Executive call

Barbara Rentler

Good afternoon.

today call Group and Kao, Marquette, Michael Hartshorn, Vice Vice and Connie President and President, our Chief on Group Officer; Relations. Operating me are Joining Officer; Investor Travis Senior President Chief Financial

outlook today call to performance, with a the our year. of the quarter our questions respond you happy our review followed may third Afterwards, by have. begin for any be of remainder We'll we'll to

up As last quarter prior $X.XX earnings Net a to release, $XXX results million, noted Earnings the last we store third quarter increased of from grew $XXX with ahead that X% to in $X.XX, strong sales our on expectations. X% our the third press from million comparable in Total for were billion, for of per gain. year. $X.X year's are today's X% up share sales pleased year. the top were period

third quarter, merchandise performing with best. trends Midwest across and saw and geographic For the regions, broad departments children's the the we based both

our to We sales also Ladies see apparel trends continue in business. improving

margin during less improvement move merchandise margins. XX.X% the actions quarter, was we holiday sales we better and While season, important believe of as than this ongoing due into to selling area into the lead above will are becomes we the Operating XXXX. to expected fourth plan taking mainly and here

$X.XX, last up months of fiscal $X.XX For earnings year. XXXX, share nine the were per first from

XXXX. year-to-date of stores X% the $XX.X X% $X.X first rose gain were billion, top billion billion, earnings versus with nine months X% on year. in of Sales last Net comparable a up to $X.X

was the robust planned and of Average quarter, XX% were inventories the inventories consolidated at up both X%. total, of year, the over growth prior continues third up end to while operating in-store ended to above last with in we were year. well, XX% dd's XX% DISCOUNTS the packaway profits. the As total compared period perform sales

expansion XXXX new Ross locations our program. opened Turning and store to completing in we XX DISCOUNT opening third the quarter, our store dd's XX program,

with for end net year increase and XXX XXXX. dd's expect fiscal We X,XXX XX for to Ross the a locations of

Now, Travis Marquette guidance color our our of and for the on on will year. the remainder provide quarter third further details results

Travis Marquette

Thank you, Barbara.

Let's our quarter result. with start third

Our higher baskets. of X% the comparable sales an size average traffic increase driven by the store gain in was and

timing similar last distribution and Third wages. by levered mainly These goods buying higher packaway quarter unfavorable were margin favorable operating basis and to margin points, while of was points items the Freight XX year. by in respectively. of expenses sold XX plan to more increased Cost five, XX and grew of the and above offset basis occupancy that Merchandize increased XX.X% points was due for costs relate by flat basis XX than quarter. the period.

Selling period points. for and administrative decreased basis general XX expenses the

respectively nine million for to of of back During fiscal stock a year. a buy X.X of X.X price shares common months million, and repurchased quarter we $XXX the $XXX total We of million third billion for million first in purchase track on respectively. total stock $X.XXX remain XXXX, and and the

Let's fourth outlook. turn to our now quarter

to continue X% we gain As quarter increase a project year. to release, today's to last sales press versus noted in X%, fourth X% comparable store

included period, a benefit per the of share related guidance one-time per forecasted benefit the in guidance resolution slightly of to higher unchanged also of which a $X.XX to $X.XX for favorable by compares per share fourth offset our This share one-time non-cash a which $X.XX prior pretax per to $X.XX share $X.XX, tax addition, the favorable In matter due of primarily now earnings resolution includes remains expenses. a tax to quarter at matter.

Excluding both share grow our per forecasted perform only guidance, of X% line to with sales these and earnings year. comparable the are last in if to items one-time X% over

the quarter is assumptions projected following. to XX.X%, sales Total X%. last statement the to Operating include in to margin grow range are operating X% The to year's compared XX.X%. to projected the XX.X% for fourth be of

We expect net $X.X about interest million. income of

we year-to-date the Our $X.XX included be benefit quarter to the in diluted one-time be updated average projected which results is which tax about earnings expected on full-year XX% in to project the includes share $XXX per are one-time to And tax guidance, rate million. XXXX previously share mentioned $X.XX. for to fiscal outstanding to of to weighted now XX%, compared approximately per be fourth shares range Based $X.XX, aforementioned the $X.XX benefit. our and of

turn Barbara closing back I'll for the call comments. Now, to

Barbara Rentler

Thank you, Travis.

today's focus As continued plan we third compete are our demonstrate and earlier, convenience. we sales the We pleased these above results earnings with volatile mentioned giving environment, we believe retail on in in and solid consumers quarter. are well to performance effectively value positioned that

as quarter. However, look expect another ahead, highly we fourth competitive we

In the holiday addition, and landscape. calendar season. multiyear and and posture Christmas, we macroeconomic Thanksgiving a earnings shortened comparison, political to maintain selling a and cautious although heading we believe into Therefore, strong best better, are to up ongoing sales do it hope between against the we uncertainty in

have. call you point, might respond this to open to like the up and any we'd questions At

Operator

with Instructions] Morgan. from Matthew first JP question And Boss [Operator is our

Your line is open.

Matthew Boss

any thanks, into you how this forward, is of highlight quarter. congrats Great, worth holiday. you'd of ladies on Barbara, opportunity to comp apparel that top and particular relative like a to sequential year's that think maybe the line, areas noting think areas category, improvement on about nice to by best going assortment any the and really total

Barbara Rentler

very company comments, broad in all merchandize areas performance, overall the based lift. was we it as basically Well, a said the the so took

sales and in at slightly performed expectation, see expecting the look saw our we we As the to and in ongoing quarter, Ladies, improved above really we're it progress quarter.

we this wouldn't but provide that. more we're in pace at with point of the detail of terms So pleased improvement,

Matthew Boss

go Great, and oh ahad. just a -- sorry,

Barbara Rentler

second question the Just again? say

Matthew Boss

any areas that into assortment particular about? of you're holiday, opportunity Just the more excited

Barbara Rentler

Sure.

at out Our main throughout feel gifts success will we're to of and we because positioned compelling upon entire feel we've she for that we offering focus store, her value her decisions, giving about mean deliver values, the on the the factor and be really to gift that items critical where good that and feel makes really built assortment. our that, really build shopping we I remains most gift believe we're this. we

Matthew Boss

the And margin follow-up just more then on Great. side. to

moderated, like the for So freight it has out much sounds everybody it's headwind and pretty there. not now

any thinking reason the to same-store is forward, it X% was any algorithm going different any think to just algorithm headwinds bottom the highlight So or in be going sales if double-digit the line. to different historically to sales consistently X% that I historical than things range Again, forward. there is question on that earnings guess at that X% is X% comp that would X% same-store are X% if growth you're margin as my we're and than range now to

Michael Hartshorn

Hartshorn. Michael it's Matt,

has tariffs. So, I mix the long-term expansion of store end, new EBIT earnings that uncertainty our of program. is the a growth, the one throw margin growth, changed combination lot thing it at algorithm The buyback would comp not in high and with then around the

net tariffs our So of algorithm. haven't we changed long-term

Matthew Boss

of That's great, luck. best

Operator

with Mark from comes Baird. Altschwager question next Your

open. is line Your

Mark Altschwager

the of question. Do on know the to the that afternoon. the headwind. and bit quarter, good Thanks. could distribution taking that just Was on hoping a in I the color for hoping expenses just a was a year. earlier there you Thanks normalize more environment you're then of expect QX? touch broadly, in Great, you you'd characterize you part give the more versus what And could buying out how seeing bit

Travis Marquette

Yes, sure. Travis. This is

across the of also things to said, related that, the couple there In wages. impacted One, minimum we With after packaway, respect that cost they wages, did wage of our were terms couple as all a this then expenses, that Last anniversary things. distribution to as we the you year. of to country. and of second are timing of We raised unfavorable national were have quarter aware. a year, $XX

by California distribution but of continue up increases dollar that, for the do up as state couple particularly this business wage in a efforts Beyond managed are year stores we and they'll California. and impact municipal cost ongoing mitigation the in the ended went wage to The years. there in both more and wages SG&A of centers, January do increases, next so line.

the to In with terms guidance comfortable some guidance have. of gave. we We guidance the continued we in do expect that we built feel forward, going and it's that pressure,

Barbara Rentler

we're year, availability the it's pertains buying earlier what of there's is brands And marketplace of sector, in for just really the all lot whether pretty plenty the now goods I'd say supply of in to much there's part that goods as from in is categories. bringing store or along, off broad-based it sales vendors it's been all and tariff been falling versus environment been consistent, a seeing across year. and the availability the coming the department

So it's good buying really a time.

Mark Altschwager

great, of over you. That's thank holiday. Best luck

Travis Marquette

Thank you.

Operator

Your question is Merrill for with Lynch. Lorraine Bank from next America Hutchinson

line open. Your is

Lorraine Hutchinson

Thanks. holiday goods insight give how years. packaway. Good a available manage looking, through few is And in you I with it's in hoping of a afternoon. lower percentage us was packaway in-season of level lower the The quite bit buying and than you'll been a is could just the into little how

Michael Hartshorn

Lorraine. Sure,

function strategic I'd we packaway of values. we to up The XX%. an inventory see XX% As did sales year-over-year. was availability, And support have quarter. us. actually also overall, that to higher add mentioned, packaway we inbound brought the that very of earlier we I'd product we [indiscernible] continue on the a for versus percentage holiday the but the are commentary, of total XX% in mentioned ahead in plenty ensure in was -- Packaway in was chase up selling year, season. actually so as basis transit, and Barbara best was to but plan And our last absolute buyers our was higher say

Lorraine Hutchinson

Thank you.

Operator

with is from question next Your Paul Citigroup. Lejuez

Your line is open.

Paul Lejuez

Barbara, continue maybe any seeing And you price are guys. better, about price are as if then second, you versus in Thanks. that best and the strata you talk point? on the wondering like any I'm good, ticket color thanks, particular available you those could comps more the availability just question, you of dd's on give availability of for increases lines, more one. seeing, to each Maybe think particular traffic the saw, product magnitude just along Ross. any Hey, outsized

Michael Hartshorn

up robust growth in the just planned said separately. operating with that profits. performed in well, dd's, commentary. I'd break on repeat results we and both the happy that we sales what We're don't very above Paul, and

Travis Marquette

of was per AURs both basket were increase by the of that was down basket components an size comp the more as items the driven average of the and terms a we The while higher In little up, average basket. traffic in mentioned, sales, was driven by bit.

In terms basket pretty evenly versus was it traffic split. of

Barbara Rentler

better, good, point product the availability in a And then across three, all assortment of really there's from. from best terms availability brands in broad of mean choose based and of product all a is of truly view, I categories. to large

one, So say all. wouldn't say it's just focused on I'd available I in

Paul Lejuez

Got percent remind us year? Thanks. can just versus and that you. Thank one apparel, represents the rest follow-up, then home And you. the XQ also, provide versus any there, in of color you you could home just the of business the

Michael Hartshorn

apparel overall, results non-apparel Yes, versus were similar, and… pretty

Travis Marquette

bit than little the business, a quarter more is slightly and in of higher a it's QX. Home

Paul Lejuez

guys. Thanks, luck. Good

Operator

Your Stanley. from Kimberly Morgan Greenberger is with next question

is line open. Your

Kimberly Greenberger

the are hear Okay, the this you great. sounded you Are like business. on but Thank across Union your with much. just the trend, apparel to Barbara, wanted It of ladies State point? satisfied like sort you ladies happy? at of you the performance so I

get Travis, And more follow-up to that have the I the or the headwinds. on sequentially would just freight packaway ask there. is through so that DC distribution Was right? XX the just unfavorable clarify, clarification you and basis points center then just from unfavorable unfavorable sequentially, a dollars wanted expenses wages? of could and on and to packaway packaway, would current you you I have a period, declined QX in wanted QX to packaway does it flowing mean that

Travis Marquette

the of sort question that year. were year-over-year dollars Yes, actually magnitude guess, answer of compared first. The higher to last increase quarter-to-quarter. unfavorability relates let and the me to I Packaway

last less we a up from but than the on quarter. year, see were benefit P&L packaway they this So, typically

and timing on question answer. packaway was the points, was the Your XX basis it yes, wages

Kimberly Greenberger

- sounds And just that great. Barbara. Go Okay, relates ahead. sorry,

Sorry.

Barbara Rentler

No, go ahead. ahead, go

Kimberly Greenberger

increases in understood was yet and California make in or to rate I related wage have wanted be connection, later. that just increases may to of you distribution the centers implemented wage I that were the the state not your lapped sure

Travis Marquette

state these We lapped wage. are after that primarily to of increase the and minimum so, we across their sort of $XX minimum minimum as sort related that increases, the did was and a local QX, lapped state company

Kimberly Greenberger

Right.

Barbara Rentler

progress. our quarter. go to of the to in the business beyond. performs pleased during to expectations, see above going I'm expect ladies And and as expect with Obviously, it pertains and were the business more than said, the in we detail the ongoing see slightly we QX pace I to into as that, more improvement ladies, not progress We but ongoing the

Kimberly Greenberger

Barbara. any this great, the of I'm quick beyond a potential visibility if impact quantify -- just into if guidance? tariffs tariff incorporated what on wondering would that? Okay, And of I -- question point? the impact do And have could, for follow-up way quarter potentially Is there the impact a tariffs tariffs, you have to at you your QX be fourth your

Travis Marquette

quarter. impact, the apparel remain impact more longer put speak third place, for obviously will just Sure, to too we in early and the the right built especially shoes term. the in they went into longer $X.XX tariffs it the Kimberly, the now QX pressure on It's Obviously, the to in about place have marketplace. retail in $X.XX

situation the this fluid remains So, very point. at

comment So, beyond that. this we at point wouldn't

Kimberly Greenberger

for Okay, here. holiday. really Good understood, thanks, nice and quarter luck

Travis Marquette

Kimberly. Thanks,

Barbara Rentler

Thank you.

Operator

Alex is Walvis Sachs. question from next Goldman Your with

is line Your open.

Alex Walvis

thanks I have I taking a few the on category questions so question. the much dynamics if Hey there, for may.

progression as mentioned about then, about for men's quarters, business there? talk second category a really particularly And you well? that what's you. category as talk on that's a last working you You for mentioned is strong children's the been question being few can the Can of strong

Barbara Rentler

really really, of execution business merchandise strong the the from kids benefited strategy. Sure,

We pretty terms then of have put is mantra, kids. they place, really and They across stick strong really in to broad-based a and performance very team. strategy fine job. a done their business a total have in itself The

and in in it's there, line men's some years, there men's for strong, in and with move and opportunities also strong, have pretty the a be continues much business we Our continues average, feel mean there're of a I forward. performance has strategy we also. like number to supply, strong been to performed chain is good solid

Alex Walvis

what you're Any likely operate thank Fantastic, guys into comments I on in price maybe, there? a course price on year, look recognizing you. you any like across the categories what may, on and which And you're follows, as that -- that pricing could question market, move seeing respond next of there? then thoughts if you you the trends in out how to

Barbara Rentler

Sure.

pricing point, we shopping top haven't so trying any pricing. seen to of the that, merchants far, not constantly following really changes I far. in So are material mean, your the lead, and competitive we're we're on to stay but

So how we'll higher not we're we'll and definitely really the and react how pricing, and from follow, again approach haven't and see different seen have go then we lead, to ultimately to they but there, the changes. retailers material to-date we wait any cost

Alex Walvis

much. so thanks Marvelous,

Operator

[Operator Suisse. Instructions] Your next Credit Binetti question comes with from Michael

open. is line Your

Michael Binetti

for expenses us it's about the been for higher please? the very, bit guess, I a of tell I very congrats what that the it think the I think ultra-competitive would us ago, on in with many were, a expectation could of Barbara, so expenses that, quarter? -- guys, time an And since questions pre-tax really just as Hey, the we some mention second back your benefit, taking can line I the in you could on thanks those midpoint penny promotional tell think, direct particularly quarter, moved since well excluding one-time did so as days top our quarter, here. now, on model, what you some marketplace the two great fourth for far you've maybe little about you you delivering fourth a or you what think a just moved, you down you're and quarter changed it expect the in

Travis Marquette

Yes.

specific couple Just so be really we of that. really of more across in expenses a and days that and expenses wouldn't the those of of are SG&A, beyond in terms did QX extra cost split have goods

Michael Hartshorn

the QX out on coming guidance of guidance change and QX. Michael, didn't the And we

it with performance against we're and we reiterate we and be said, strong in to the we store in recent what department guided just highly commentary, expect comp at As we X%, a up to QX, said multi-year comparison. and especially the X% to with competitive, obviously

We landscape. be continues and the and Christmas, shortened quarter. political with the holiday posture best have in to Thanksgiving cautious the certainly if uncertainty I'd with impact minimum instance, the there believe it's add, manage to macroeconomic the holidays, calendar for disruption, to calendar a during shorter both our That between calendar the Christmas especially uncertainty a said and it's difficult there's overall more historically, had sales season. the compressed a the shorter business near to but some way overcome, weather the we

Michael Binetti

XX All it have I quarters, talking follow-up, AUR of merge look points that's a to expanding term basis and rate is while, guess the years, able me. a right, that noticeable run we a that fairly pretty on the makes little kept sense slightly, for some as one you margin on question, at call basis one components, thing consistently well. to been longer pretty impressive that do but in as not lower consistently around you've

our be beyond? to but up be reason down dynamic up, been few any it's eyes multi-year to we think that the that that's next you're sustainable you on to and heard thinking a basis merged margins changes since know, is we there the AUR forward that dynamic can lift that, the plan going to prioritize a you AUR a is year value to I slightly, that and continue years continue is look,

Michael Hartshorn

helps we one, business know, which to have chase You business beat line, two, we typically if and margins. better plan and which us is the key the markdown cautiously, can can the the turn the closed outs, plan, for on with then what faster, sales we

if secret plan, opportunity. can the our beat that's sauce, So that's sales we our

Michael Binetti

you Thank much. very Okay.

Travis Marquette

output And the an AUR target specific something input. AURs, We it's that process, is not don't an a really not we plan. of

Michael Binetti

lot, a guys. Thanks Okay.

Operator

comes next Your question from with Bank. Paul Deutsche Trussell

open. Your line is

Paul Trussell

you. afternoon good Good Thank and print.

wanted maybe backfill terms shouldn't new of some reason and Just talk there that is what discuss new to forward of in number. is why existing in about performance, what go more as think a bit well, markets seeing year markets you in store you're seeing any you're and we good doors a you XXX the have a as

Travis Marquette

Sure, yes.

of consistent couple pretty store performance years. the last Our been has new for

As over you a growth, XX% couple we're out of last little our it lower doing little our are little that it's the of worked with talk the growth for to doing while ability markets we of existing sort XXX and side. per XX% year for that We've and sure still higher, average been might aligns now, market, future think we find per the imagine, a has not bit we're with our we to right performance make in sort the we of drives the in that to tend bit to that, years, a to them us, -- can their about that pretty be comfortable that. established be and make new to wouldn't year. sort of of we way beneficial stores but seeing a XXX If opportunity as success. sort forced decisions sort in we open wouldn't around We're

Michael Hartshorn

the what in a real-estate add we would That's couple our hopper out. new standpoint. store is opening years the lineup site can is see that of really on from just I And a just

So we're comfortable with it.

Operator

Markets. RBC question Capital is Kate Fitzsimons with from next Your

open. Your line is

Kate Fitzsimons

that just school, believe. flows rewards so third into my holiday? looks back had in-store Heard is receipts, to maybe was Thanks congratulations on on views like headed headed inventory I'll inventories add much. as your My really I it them you how earlier the well. decision up hi. in reap Yes, it obviously X%, quarter, slowed and the inventory adjusting question

just into headed adjusting So curious about quarter. you. those the maybe decision maybe fourth some Thank behind of the receipt timings

Travis Marquette

may the the missed last Yes, had compressed opportunities I thought going into have year. mean, for we quarter about that us, we it really some and we was calendar,

the it So, and year, beginning of good. our at we see it was plan the in actually

Operator

is next question with Your Blair. William Hofkin from Daniel

Your open. line is

Daniel Hofkin

afternoon. Good

believe I commentary kind category to a it or that think was just about question, kids. question a talked other I on? you then home variances Just you first little my Any bit quick a and care follow-up. That's regional had of quick would I comment

Michael Hartshorn

Yes, sure.

was broad As the we both Performance discussed, cat pretty and based performing category. was to --across top geographic kids categories both regions.

southeast again, some also southwest the were the were broad-based. performance but kids, of shoes Geographically, a strong Aside category. also strong from and is performers, pretty

Daniel Hofkin

out kind as And within any can can anything now what Thank then, improvement And any I kind you're issues ladies that correcting? the you're what you any online share landscape? apparel, the you into were, of you're updated in just guess, on the about been curious competitive lastly of of the have kind getting there resellers, if seeing thinking color on or there's you. more further

Barbara Rentler

Sure.

we're We back to part have would what and our that growth underway initiatives So, feel happy the quarter, rather in moved and then is into direction, we the right in continually satisfied XXXX. rehashing through as ladies business, I we right see than it's with the is we a place we ladies of like about have throughout listen, we're we fourth fully believe sales say scenario, XXXX. the that strategy improvement, drive go to that and never although any

Michael Hartshorn

retail the with many offer values a the possible. customers is model, value differentiated different offering. On our have business and our years, the to focus to retailers continue relative sure best believe we we we obviously competition, branded making competed over retail We've the

Operator

with Yih next Barclays. is Adrienne Your from question

is open. line Your

Adrienne Yih

afternoon. Good

sort on what's time, a expenses? Michael, of for all very rent small is some rents, with in fixed you launch add expansion? you U.S., would about Barbara, at what sort me it accelerate the contemplate the questions, much. you a northeast what impacting and happen Mike, comp you have e-commerce business? then, point one as is longer happening And breakeven potential term regional Let about to quick in the expansion you of anything for congratulations. and at my Thank for two think plans a off would trends, And where of if talked your to

Michael Hartshorn

I'll all in of three and there jump Adrienne, those. take

environment. not off which we're to a are that our would an be profit. view sustainable, e-commerce, think economics business shipping would accretive and $XX online our business, that We don't returns on any what not just in, the we AUR So, financially has with the With and to in work changed. is way price $XX see moderate free not

In over real over into to terms real not the recently. any in several couple continue that rest our not really lease of estate before XX% changes. existing growth grow years markets including of stores, continue years, country next next building we of Midwest, the be And of those XX% terms the terms trends, in changes and rent Northeast. to the in the and would will or do of we about enter the to estate focus seen will significant continue to then, significant We've

Operator

is Michael from with Your Nomura. next Baker question

Your line is open.

Michael Baker

higher then, quarter on time be slightly Should follow-up that pre-tax slightly the we that expenses? specifically fourth expenses and fourth one the guys. in more that one, the quarter, $X.XX business back to you, the time back as impacted called in just that does tariffs follow-ups, to they to In looking Thank that Two by you were the said in quarter? X $X.XX still as pre-tax we ongoing for words, $X.XX the out mean to you one half, X be consider higher or half, supposed mentioned, you and the expenses? third those a $X.XX other benefit $X.XX in guidance

Michael Hartshorn

QX in $X.XX Mike, impact the on $X.XX then guidance assumed to $X.XX fourth in the tariffs and original our quarter.

in into saw we mentioned to in purchase you I for tariffs latest margin. and inventory say enabled point As pre-tariff a the would improvement that basis a impact -- we went pre-tariff I mitigate the effect earlier, Packaway for also had mid-quarter. just in orders where that so XX us September, trench the QX had merchandise

Travis Marquette

before expenses, on for that expect -- we And just just are this QX only. $X.XX those additional

Operator

next John Your from Cowen. Kernan from is question

line Cowen, open is line John open. Your Kernan is your with

John Kernan

sorry guys, that, on nice another Hey, quarter. about congrats

Just go back to question. inventory to want the

on had the turns free of years, great obviously flow. the it's growth inventory several cash Your effects last consistently improved

can inventory how wondering, much and think capital. you think can productive you. more you turn Just with you Thank much faster you working how be

Michael Hartshorn

it's going forward think I down. been

we back front If I XX% the brought mean, over of decade, a customer. inventories you in go down

way level opportunity beat the really the lower at the Given faster. can those margin, we plans posture to if that's and turn we plan a like that's we plans business, our

Operator

Your with question next Group. Advisory Telsey Dana Telsey is from

open. Your line is

Dana Telsey

results. about side, seeing Good very bit QX growing as Are a afternoon, Thank a was still the improvement and women's the becomes beauty is little and that of you larger please the talk everyone, nice And in Can and that beauty you from progressive that congratulations apparel? how plan? on and you. QX sales? on piece

Barbara Rentler

and the So, growth add beauty assortments, sequentially we continues and and been grow, feel business and has one quarter-to-quarter. products about so as it we it's continues expand areas boards to business the of and of good our classifications to additional beauty, a growth

has you as looking said business, improved year gone you see know, forward through the as to as know, apparel progressively and So ongoing we've we're expect progress I ladies we

Operator

Your next question Ike with Fargo. Boruchow from Wells is

is open. line Your

Ike Boruchow

seems high in declining. was a behind row Question them, I margin everyone. margin for had the company this the be afternoon, but big out? question my to freight good is plus takes back expansion year. of will inflation some just next doesn't looking picture wages, a wage bit curious the business the to just to growth, of outlook the any begin second a operating put year be nothing like there's Can a Hey, it for level just the better, specific, potentially again, a decade to kind period outlook of team, and little margin guess broad-based of for seem get question,

Michael Hartshorn

tranches tariff the with mitigate we've cosmetics, those, here and to and of even we been place of ahead, in the one transport. start year, This mitigate would our sales I and certainly year, on that's where if opportunity will we think year be. if with cautious lot home I out a Yes, all three time through though trying outlook have been going to sales Ike, to able drive then impact, point is the look we've plan, accessories and spent a a margin can ahead

again, tariffs, this going year into uncertain point. different very So, what at are is which next

Operator

Retail Marni Your is next from with Tracker. question Shapiro

line Your open. is

Marni Shapiro

everybody, to pleasure conference Hey, and a like call. a having I'd congratulations, such add it's boring

to see you I it. been for a in you shopper she lot by a It's or or That's ladies card back the ladies When has working she stores, did you that's thing. that compliment. dynamics if credit the got buying business missed great departments, store. have can just shifts or seeing the was you. about tell buying, she of and receipts a a other curious guys the not shifting talk big and was I'm business. question more, tough think in whether you I departments, shifting how picture data, just are There other Barbara, anecdotal have her is the to

Barbara Rentler

think the so when when apparel customers you the -- think our difficult, are but tough, your think look woman, business entire is makes know, more core makes obviously ladies I business I about when you and things we it ladies the don't her her. handbag, think so shoes think that of and we just all of more as apparel, her apparel satisfy customer, all cosmetics, her holistically, think the of as so we it

well beauty businesses from than so is that continue any -- be this was and when healthy, were other fact like going were grow the stays anecdotal, difficult. anything this healthy healthy to all to other isn't So, ladies

think the store. And I so, she in products other I don't -- necessarily bought

to say products, better businesses than there're been and good ladies I exponentially what it she products if has should her for would even are was, I bought have those things probably of and lots growing choose. because apparel However, those or think

bargains If all I it So all will do when do compelling quantify, and her also some that difficult all the ships we the think the store, becomes the very there in that I if and area but impact as to we about assortments potentially in customer, deliver. are that we apparel, that in we as personally, all compelling but think big things businesses we I assortments, total it that but ladies core and other do just think these an illogical. is you don't it think and deliver ladies, be I that's satisfy total think end arrive,

Operator

Guggenheim Securities. from is question next Your Drbul Bob from

open. is line Your

Bob Drbul

Hi, throughout there you accessories of if point? could handbags, I wondering women and may as how was variation be handbags play a that your piece at talking the and and quarter, mentioned good weather was at out the seen to category talk just you've you guess you any month-to-month, business impact all this I but and sort afternoon. about last did Thanks.

Travis Marquette

is don't Travis, variation. we results lot This speaking, Yes. a comment of there specifically month-to-month. wasn't Generally on

for In wasn't terms impact of significant weather, again, a at the all it quarter.

pretty chain. terms and again, it close line the accessories performance, in performed with of In

Operator

Capital. last Laura from question with comes Our Champine Loop

Your line is open.

Laura Champine

ladies business, the in category Should quick a the down AUR one overall? was it was that be more for than company on

Travis Marquette

we about by don't generally Yes, talk sort line AUR business. specific of of

Laura Champine

Can give got calms B. average. quarter? strongest a us Plan it reason region a the in region better was than The you you I've Midwest why think

Travis Marquette

Midwest our the ever been best Yes, ago. the of has one entered performing years since market we regions many

the been customers performance to values responded of product in so sort think since ever them, very with the we entered. the pleased offer I we've well and we the that

Laura Champine

you. thank it, Got

Travis Marquette

Sure.

Operator

closing Ladies the portion over gentlemen, things the this any back Q&A and conclude will I remarks. call. of management for to turn now does

Barbara Rentler

today for you great joining us your and interest in day. Have Thank Ross for a Stores.

Operator

this participation gentlemen, may and today's conference and call. disconnect. now you Ladies for your Thank you does conclude

Ross Stores (ROST) 21 Nov 192019 Q3 Earnings call transcript