Earnings call transcript Q1 2023

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Operator

Good afternoon and welcome to the Ross Stores First Quarter 2023 Earnings Release Conference Call. The call will begin with prepared comments by management, followed by a 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. in XX-K release X-Ks and file the included fiscal the on are with Form XXXX fiscal SEC. factors today's and press company's the Risk XXXX Form

Barbara turn ahead. call to Please like I'd Executive Officer. now over And to Rentler, Chief go the

Barbara Rentler

afternoon. Good

performance, Relations. in today Kao, are Group review Orvos, Operating Afterwards, call you Adam our Group our to of followed Chief Michael today XXXX Connie our call quarter me year. Officer, Vice and by for President Hartshorn, We'll quarter Vice fiscal respond Executive a we'll second Officer, the with and may have. questions Joining begin outlook Investor our President, first President, happy Chief to Financial and any be

share impacting sales moderate customers, weeks share XX last on store sales $XXX $X.X April As of noted in year, rose compare ended per million. $X.XX relatively today's were for of of from comparable XXXX. press our X%. pressures low first million for to $XXX $X.X the income our release, expectations. quarter These income XX, billion line XX, Earnings while inflationary despite with in up Total ended XXXX, billion, net $X.XX, net to sales XX weeks per results a for the April earnings continued

Packway trail region. and of were represented DISCOUNTS last to in year. Average inventories X% were the inventories dd’s reflecting By performing Midwest performance XX% merchandise end, larger versus continued consolidated the last the areas of down strongest was income during merchandise first at aforementioned the were Cosmetics total XX% up households. lower versus inventories to top our accessories quarter. quarter on that have the end raw, year. continue XX% the the impact quarter, store total inflationary while the a pressures quarter

DISCOUNTS X the Turning XX Ross locations growth, dd’s to we opened and new quarter. in store first

and Ross year, stores to XX of approximately comprised XXX about XX plan for dd's. new continue this We

As XX close not our reflect to usual, do plans relocate or these about numbers stores.

our on quarter the color remainder our Now on Adam fiscal XXXX. outlook and additional first results further will details for provide of

Adam Orvos

Barbara. you, Thank

were previously the by our X% up an store As driven in increase comparable transactions. mentioned, quarter, sales for

margin in was from XX.X% quarter down operating XXXX. XX.X% of First

reflects As this versus expectations. underperformed compensation primarily decline when higher last incentive expected, our year we

Cost XX packway-related of due improved goods primarily XXX Partially a two basis distribution were margin timing by unfavorable primarily declined basis of up combination Houston points basis offsetting deleverage from distribution factors. costs of the of sold opening by to to costs, freight these due lower was items favorable costs of higher ocean points, domestic freight basis points, expenses by while XX and driven points. XX center. our Merchandise

points to XXX the SG&A increased higher points, due higher rose Buying to basis last by mainly due basis period and incentive year. five store for points. deleveraged compensation incentive and occupancy XX versus compensation, basis wages

quarter, the $XXX X.X for of repurchased buy total to million. During We $XXX on for a million back track we an common year. the aggregate first of stock of stock cost in remain million shares

of remainder the XXXX. Now for let's discuss our outlook

to flat. weeks XXXX, XX, relatively For forecast the XX sales ending are July comparable be

quarter are share versus $X.XX ended weeks July $X.XX Second XXXX for the $X.XX XX, earnings projected to per be XX to XXXX.

expenses, to range, store to X.X% an the ocean planned in to XX.X% be wages. and costs the to versus second the of Ross in quarter, for to assumptions the the open and XXXX, second freight higher forecast XX include primarily second in to guidance by quarter increase XX.X% be as in lower locations to DISCOUNTS sales Operating including Our margin X% from year. the forecast merchandise for incentive margin quarter XX down prior XXXX is dd’s X% related following. Total nine from increase offset compensation plan locations. is are We

million. be We diluted tax to is shares approximately interest $XX are outstanding projected XX%, $XXX about expect expected The and be income approximately to net to be rate million.

XXXX. the to Based weeks Now earnings estimated planned to XX January includes store XX XXXX, February year turning be flat. XX XXXX earnings year. to for to full $X.XX ended the to guidance ending $X.XX weeks to January for an first per the of second sales still the X, XX, weeks per on for the the be are approximately now $X.XX our quarter benefit ending and XXrd relatively share XXXX, compared We $X.XX week. full for from quarter, guidance XX, project share comparable This results

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

Barbara Rentler

Adam. you, Thank

in to on had call, the noted environment. This challenging uncertainty retail and given year. continued earnings especially the our be we macroeconomic, As XXXX last expected was geopolitical another true fiscal

result and visiting expenses compelling of bargains diligently are uncertain especially while maximize a our inflationary our negatively most possible prolonged delivering for response, shoppers opportunities even today's stores. values managing when our pressures the inventory external customers' stronger spend, on we growth. remain impacting As focused the landscape, to seeking discretionary In

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

Operator

the comes with line Instructions] question the first from And JPMorgan. [Operator Boss of Matthew

Matthew Boss

then today in across pressure the Barbara, income across buys low categories given that you about that just to your middle marketplace So value the base level the the customer on are or cited, managing today? do you moderate income how of perspective? how your you current from merchandise apparel landscape given low And maybe to feel assortments disruption

Barbara Rentler

perspective results. we value our from weren't me satisfied let really first, assortments lead with -- with, merchandise The

So we and the as I those well addressing different we had businesses, issues. businesses didn't expected, where business across some we're as the as look had perform

let with start that. So me

main store, for at the has few focus the merchants for last a look months. I value been the that across As

the that possible there. board, but possible can a us, at best progress the is the I branded So across focus I'd we customer best we've think that the say offering still that put made values for major bargains out

an for I our how team merchant on managing highly important marketplace, -- question? And saying you're would supply the So lower-income in journey, the and that customers. focused that's I especially say of to terms of in is really, this. on a part, I that that in mid- -- And terms interpret is think then we're is managing everyone really

Matthew Boss

you're to Yes, current overall disruption there perspective. just how and you're things about the much buy open how is leaving, a in thinking landscape? apparel buys packaway relative managing much given from How to opportunistic maybe

Barbara Rentler

we have Well, both Okay. and chase for packaway business. to enough open buy the to

across So same same were they speed at we is rate monitoring the the right business the scenario. chase are would the that plan coming now, of basically we're spending. we're as as hotel, And the inventories and Hotel last year. postured

out out those on seeking make deals, deals and are merchants those the the market so based we And decisions. in

up. deal wasn't one might planned for really if that business So a in comes we that and plan business, take that even

for So we're that what is overarching with we values to really idea do want get best looking the the floor. on possible

market, about businesses know go what's I as out and know, there merchants know the market the anyway, you out brands type then there. the in in by availability supply to there's is that across and vendor. you product broad-based maybe most most because pretty discussions So there, of fluctuates

where see bargains in that we that then there be come to it back then do to companies, But focus But decide possibly and delivering we really is can. deal. to of in kind the out and want take what's best our be branded both out there you and have the

Operator

from with comes line the next Altschwager the question of Baird. And Mark

Mark Altschwager

guide is your year, and deeper focused you holding looking that. for a the you're your comp are for noted So value though, the merchants consumer on

the lower expectations comp perhaps I at are changed of? that some of there wondering start we of the how be to involved, there's And ticket flat the guess versus any has extent So implications I'm should your expected margin the year? makeup aware that

Michael Hartshorn

Hartshorn. Mark, Michael it's

bit year first number was The the Let of proxy first traffic. quarter in driven me a by our was for comp start transactions, us, about by was a for just talking It a that up ago. and versus that's quarter. -- the little

good that's a customer traffic a AUR. flat transaction, sign up returning. was it So on flat The lower basket average was units per and on on

outlook how a expense and conservative to a as continue business chase year, the in posture conservatively. looking to we're inventory be the with chase far not manage and changed. business As at very manage We'll the our and trends, has position

we more and a basis. see we basis favorable, did trends on a quarter, On multiyear became as the through weather stack as improve move

So what a healthy is, for and our changed hasn't year. trend and says changed hasn't obviously, traffic to outlook that mind, that, us in the our

Operator

And the from question with the comes next line Paul Citigroup. of Lejuez

Paul Lejuez

big the trends apparel the dispersion, geographic performance about the quarter? maybe those talk beginning from specifically the quarter of could you of look Curious And of to you How if versus the if in performance. California. talk maybe about about some home end states, could your states

Michael Hartshorn

the basis stack the the just chain mentioned, basis, improve trends mentioned moved was see -- as On with Midwest stack we Paul. for the and the markets. did versus Geographically, see the during Sure, region we April on quarter pre-COVID, being as we through above our with I larger Texas average. trends did top-performing a we quarter, strongest.

weather home trailed. was were the we script. California average, in while the as cosmetics the the was performed the the apparel shoes Florida line the Overall, difficult accessories average businesses and throughout and chain Merchandise-wise, given in above and chain quarter in line said West. underperformed best-performing in

Paul Lejuez

the the gap end you a California just below -- close was rest can California. it that the on of chain? did more of the of the between Michael, quarter? chain much quantification of Any bit and by how little And that

Michael Hartshorn

It as get did underperform weather close, and it chain we it wouldn't did the average into the improved it but -- was specifics, improved.

Operator

is Lorraine question America. of Bank next of line the the Hutchinson from And with

Lorraine Maikis

down or any did quarter, trading changes the through see behavior? of move you consumer Ross any other into customers signs As notable you in

Michael Hartshorn

there's a whether I'd benefits, that down in was sales. ongoing inflation, customer tax -- factors to Obviously, refunds, lower it trade say that into customer but was overall, in continues hard be low-end data. the SNAP -- it reduction hard pressured, see there's whether many it's to go Lorraine, it's so

Lorraine Maikis

in? there was lower AUR in sharper the that Or all points? quarter, the is price towards a factor we moving that component mix should to that And

Barbara Rentler

sharper wasn't price That's mix. point. generated by It really off of a

Operator

the of Gordon question And from the next is Grom with line Chuck Haskett.

Charles Grom

first had here quarter. the the thinking in margin called Can I you you and the then The merchandise that uptick think about balance to talk item the out line a about last relative year? over drivers? of quarter how the nice you're freight

Adam Orvos

Chuck, is Yes. this Adam.

was freight in Ocean grew by here clearly I So driving improvement. component the the merchandise impactful mentioned the points most basis XXX QX. margin

for And line Our performance are, we I move assuming embedded where year. in our what to as continue stay that we they in expect rates was in the margin with merc guidance QX. through

Operator

And line Barclays. Yih of with the question Adrienne from next is the

Adrienne Yih

I to want year the XX% XX%. this Barbara, packaway, you versus ask about

you gives your you of chase foremost, on assortment of are retail, these there when sounds the typically, known late sort warmer to is and then to opportunity like First weather of winters. believe across and it it kind kind breaks that trend, weather into

drive feel little somehow as when promotional, second better bit the into may with Barbara, the being frontline Adam, frontline does higher is because or heading promotional? then, about impede a you value ability that to Do is maybe assortment the not quarter? very it And AURs less the as evident be still

Barbara Rentler

Okay, Adrienne.

think that year really content on in on at packaway, So with with start you we was all in at started packaway let's moment that into when up, was later the So issues direct put the content year, speeded feel went we particular use packaway? content I good all took packaway. bring told the the of to Last things about and this first the of about goods that packaway, imports. we at because at we in question time as we packaway, them our carrier whenever good

that the now have about. we great in closed deals out good really So we there that very feel is packaway

same, might different. the the percent but content the So be is

So that's first the one.

the understand one, in late I'm I terms mean second sure break, by not The what you of weather that. XXX%

Adrienne Yih

just many -- those transitions when for the colder your weather given answered people plan it And just types the but of were think of than I you missing seems poor retailers because been it's in oftentimes sort one. cold it and in was of first like longer. it opportunity, Northeast you for -- in sort So have past, were the

Barbara Rentler

out great weather saying business That's because deals that. facing the there you're the ongoing. of additional of good. merchants, out yes, close kind in all there And are the and looking were Yes, is market,

part so So supply of business. very Yes, by are there of the -- out that's that's different that's there. availability type

Adrienne Yih

of wide the your frontline from pricing? spread, kind the to the And spread

Barbara Rentler

promotional more relationship think are what's saying and they than promotional just to it's I environment? you're been then the now, that promoting it's our

Adrienne Yih

half. Yes. the Does XX frontline harder of it create when notion value on sitting are it make to every day that the sort retailers

Barbara Rentler

is -- don't away. people watch competitive. competitive going I Listen, still is more still I promotional environment the We Yes. few the look, months. in think that think market. last very It's promotional that's still a get

happen what with buyers have understand is I has things. is in market, the the that constantly working what to to happening think and is to be two vendors

One, they need but because pricing not be availability, just -- to -- their to brand they they get values that sharper. they also know only need need have

So in what of land, on vendors they're that what's of that. they're and lay about going is, availability, competitive in I you're keeping talking seeing the they're are stores have giving they're also excess because close goods in the shopping, and and pricing market studying -- mind the then the kind out where the them

erode that price it's got particularly very a as in the while, selling, more and So world's more becoming for stores. much We're promotional. watching watching different regular you're department and was there

practices best for for company been have those the years. So

are doing that. assumptions would started they ensure about that gone that in all the more And and so selling enough then them, happen watching that's done on all has making to believe and some traditionally what but front COVID if which price the have of price regular things be what and -- they're to since of merchants prior of could it

Operator

next question Boruchow the from Ike comes Fargo. the Wells line of And with

Kate Fitzsimons

the line the decent buckets think on Kate both hone through direction COGS. you is how maybe last margin us of had gross progress rest piece, just guys I in This year amount the distribution for a Can or guess year, magnitude? Ike. buying you and in walk through volatility of to within those you items on

Adam Orvos

Yes. this is Adam. Kate,

So them take we'll individually.

increases we year-over-year. the costs. but in basis as of So costs, to a ocean that go those over those seen of there's out embedded what's significant given things the And assuming to ourselves, But would tailwind points as year. volatility of called Domestic kind tailwind embedded to a highly we've a prices. freight, want the don't continue obviously, XX balance expect we us here wage Again, be fuel the all get too we QX. dependent as through freight ahead see is that improvement the Again, for on stable, forward. stay in we'll time, in tailwind far to guidance continue go of

that out time, The incentive biggest those costs. offsetting some benefits piece we've called are for

probably the most us at look say that the comments, we gave So from an you in cost when be also the second year the I impactful for increase call incentive of quarter, details approximately in we would versus quarter it, will this last year.

distribution We expenses. also commented on

deleverage So timing of center then the distribution from newer in by again, planned our driven Houston. packaway and

Operator

comes And Stanley. Straton of the Alex next with question Morgan from the line

Alex Straton

Great.

not consistent like happy you've So that super narrative value historically, think is ongoing year feels the you're I kind the offering of there. for this customer. proven the it you're super and an successful last Though with

this the track? how about place on in to correcting this putting or you So And perhaps Or thinking getting think the I'm do team in has get just wondering, maybe back changed is now? wrong anything buying you're what buying organization? initiatives

Barbara Rentler

for point, the think on -- getting a I year, brands over the months equation in been where were we've think we're at last values to towards the I value in kind both than on we that moving now different floor. ago, Look, a last months place few few the and of value working

job. their see I as it don't aren't evolution. it an I kind see of merchants doing kind the So of

that focused pretty compelling the very on around we are value very, so them, all all companies our customers we've And inflation in gotten delivering and watch beary. we as the going with highly struggle are now both on things

focused we're those put on very delivering values. me way, Let highly this

it we're thinking about six where say, we evolve. months were, continues to ago and So now, how let's

that make a the we of and our it's want strengthen to assortment, so branded wide environment. sharpening receipts, fresh we're we that branded And merchandise have really offerings sure where competitive retail the appropriate because to values

even last think year that customers, don't deliver through is really important not competitive promotional, time went feel particularly And to I make also. to our for it's So we we feel we have working, that and us and business to I and that world it's getting value sharp now our lens I frame. evolving, it's like more like evolved the look this along, sure as in more necessarily

to that and that job on I focused need sure sharpening a out So and we that really on we it stay where better think are values. making appropriate it's branded our do this understand we

And so I not it's don't working. think

in of I all more think evolution of it's businesses. much an our

Operator

Simeon comes BMO line question the Capital Markets. Siegel from of with next our And

Simeon Siegel

last in change percent versus trend. top just Any a and versus the then being by sales of driven vendors historical year

all? largest vendors updated And coming of it's any on then changed frequently, Just has thoughts the fairly because shrink. concentration at wondering up if just

Michael Hartshorn

I'll Michael, typically assumed a was but shrink, in will physical Simeon. that for little we -- quarter. wasn't in We've stay at financial it when take last the above we bit no On we or update true our levels start. of year, impact higher higher. slightly meaningfully third that estimates, It's -- inventory updates shrink the up us the those our

Barbara Rentler

And the little supply, from vendor vendor, one someone we bit that a a a then historical, up percentage vendors but of of little bit the So more of versus one moves less, else. and year, next our from based year, right? could top great top merchandise deal have

that vendor changed much. it that vendors, itself around. the think I if availability out more there. but I we're it changes the that's don't as it's and It much. kind I So moves don't of think that hasn't changed top defining know by

Operator

with Dana Telsey question Advisory Instructions] comes from Our next Group. [Operator of line the the Telsey

Dana Telsey

fourth the lastly, on first And about happening environment, and to quarter of any to the Bath to saw? think you there would addition this then was of would store you in in that any, the that & performance year? are of and be in available, were openings what current what's be the you Beyond it? quarter dd's just dd's As differential performance locations Bed in run it if Or part rate the get the

Michael Hartshorn

which to fourth I think, on to improved though, on their Dana, differential between headwinds trends comment Ross' to Obviously, I better the the customer sales in there. is, drive we trail their first results continue performance faces similar more sharply are also Ross, wouldn't reflected quarter. would on offering values sales during Ross', help to focused first. dd's, and macro underperformance. relative I the even say,

it will new & year. Bed on appropriate opportunities opening us. new case-by-case to if Beyond, going On say, doubt have plan this it's each to for for potential site review a locations. it's Bath We'll to no store for would provide But basis XXX not impact store our I see

Operator

next the Bob Drbul our comes of question And line Guggenheim. from with

Bob Drbul

spectrum? I guess the best happening or how buys as question are a macro, when look to you you in merchandising it. I'm just mix, just is your of good, for lower curious of the the piece thinking you about you're the what's of terms in at your end better, think just the me migrating offering about

Barbara Rentler

Sure.

a is we values that on that best the strategy, and have driven out the we the floor good, really put and by better, assortment put we So there.

So set we track based that tiered customers. on based going our we're move broader more on But want based of a supply, on because availability, to strategy purchases. can much

go. you it as So fluctuates

Bob Drbul

in a offering? the And environment your really rest better -- of think year, buying for the sort you're versus a your of best not good of more as versus you about

Barbara Rentler

business. think I depends by that

that you is I company-wide a that I can't think strategy. tell that

floor the so on clearly, both. the based putting business we're is. business And putting to or we're the price-sensitive, by is on on what the very paying moves particular, attention customer, the values that pricing in the really dd's floor, think I

things, dd's, So around. -- moves at these but it even

with that So conscious customer. obviously we are particularly there,

Operator

the with the next Goldman Roach Sachs. Brooke line of from question And comes

Brooke Roach

help driving in Given Are of margins? you any provide path outside additional I'm ongoing the market recapturing recovery macro, initiatives updated pre-COVID share to sharpening can thoughts inflationary that to capture? that wondering longer-term contemplating the values pressures on and the if operating there you're drive

Adam Orvos

Thanks Adam. is this Brooke, the for question.

persist, question highly in our And of operating a term, we to over can but longer do then margin long on how pressures inflationary the sales on delivering So -- over dependent we sustained be us believe are long-term time. achieve the strong improvements improvement gradual period profitability.

think related stores. are there into I seeing costs are still pressures We're structural questions in still benefit but that? wage tangible then these pre-pandemic if some to you seeing not we're at in we're the levels. cost, any -- freight like, And get

When we've -- million. CapEx to you guided talk $XXX about of

big component new that distribution that chunk addition a big of So to distribution centers. stores technology our stores, investments is will efficiencies capacity, XXX within and in in investing further a drive addition of the that center in the to in

centers So more past. automation store initiatives we've the some and on in our touched distribution that in

Operator

of question next line comes Capital. Loop the from Laura Champine And with the

Laura Champine

maybe impact that's discrepancy in something quantify you weather's rest about California the It's tough the between give the us one, Is the on QX. roughly if your maybe and comp of a that or can chain?

Michael Hartshorn

to hard calculate. it's Laura,

I it what trailed suffice under I average business. was is improved it slightly -- to say. help California -- did say the our think improve weather would as the and we'd say, it didn't chain

Operator

question from Retail line the with And Marni of next the comes Tracker. Shapiro

Marni Shapiro

to wanted just I clarify.

I Or sales? Could that less decent adds it week? to week? a said about expect number we million it's Is XXrd use little a January is a week for think $XXX Just to like the that you between because in million $XXX curious. $X.XX.

Adam Orvos

as Marni, a it's given that, than January, early Probably bit said, that given you that less February. little it's,

Marni Shapiro

the for the for of That's is deals, good dynamic which the the other what at on you've looking beauty, and but items Or to higher curious looks came as on just seen gravitating seen what sale slightly but lower-priced in back traffic people then cosmetics or AUR. it figured. they're towards I sharper a out lower Are better that prices. calls, this improve, AUR, weather have called are you have that I'm apparel apparel there. items? the are you people looking up And come sort is like obviously your tends accessories

Barbara Rentler

apparel So QX. struggled in

off the necessarily don't think driven it I prices. So was

where necessarily assortments wanted to not were be. I we think that the them

a could what could there's of price, that product depending been in discussion, have the the have been factors because that this there. So variety upon

So down denominator or or by common I it it's take I the I it was it don't it -- done. and driven price assortment think driven really said driven when was would -- all by it to markdowns was a could say, say,

Certainly, impact, big the could weather a so sit enough is the think weather I here didn't say don't I but that. and help,

I think our wanted be. weren't assortments necessarily them where to we

And on so and going work work continue merchants on working we're But or are to or a really working for it's we're based now. price of one that, thing to the off our cut and not that. on out -- that us we have

Michael Hartshorn

It driven -- mix. wasn't across the being driven by was It assortment. sharper priced

Marni Shapiro

So the it AUR? in specific the It was softness apparel. across -- wasn't -- assortment you across saw

Michael Hartshorn

AUR was that by mix It mix. business. asked by in not was driven the You driven

Marni Shapiro

you But softness women's the dresses that were -- certain if don't there department without were certain it men's across other board, were or okay. whether the on that were the spots really side, shirts was there work spots disclosing want or a across even to, of was was need kids, the every spots and soft? apparel Polo that board Or lot

Barbara Rentler

going one ratings like best you're specifics, what are you're there's wouldn't I asking in within no but know into get businesses businesses, there to area? you're there. get I others, tell with don't but we're know. the details, into referring better obviously, than is common that's right? what that, some are particular like you Well, we not apparel sense that to So all telling --

Marni Shapiro

-- that were thinking saying positive. killer. dress of there something kind on Was the you're was I

Barbara Rentler

the business delivering the Couldn't very they're is it's decide were going were highly would I get merchants the businesses say now. focused products, where with right values, the it's so on didn't specifics and that. Every diligently you performing, has What businesses to that right some not going that whether into we're whether are on that that. working assortments, on really

Operator

question And Jefferies. of the comes line Tarlowe Corey the next from with

Corey Tarlowe

just your spectrum those you to on Is across the better, any speak one you as within that availability have. your three Barbara, good, there better any merchants? availability segments best of

Barbara Rentler

more the it's bucketed than supply one it's the -- It one the buckets. say supply. does No, businesses, is where lot Supply of in broad-based. saying wouldn't the pretty there's broad-based. just a there's still three overall, supply product I other. vendor other, always would most You're fluctuates still say than in those of I pretty more on

Corey Tarlowe

full then the to guide the And that comps, driven the year by for expectation just the well? it. Got context on the sharper I is be price within points. the likely of the AUR the throughout AUR lower being year lower as of flat is common guess for rest

Barbara Rentler

The delivering really value that is on out what better down. mean we're -- putting your on is we're going focused value. AUR doesn't But focused necessarily sharp

you're upon customer. we're example sharpening do depending values that good, depending upon looks on branded mix is what down. focus for So -- going mean the really what AUR like, What your -- using of the really better, trying necessarily that best doesn't we're the our to to is trying

And sales, market that's our we ultimately gaining path to to driving share. path and that's our so think we think

two necessarily So those don't hand. in go hand

Operator

the question comes UBS. Sole line the from with of next And Jay

Jay Sole

guidance guidance tell just low you're about you raising us for $X.XX, end you like the the low beat of the looks the extra coming about $X.XX It but first end is, full Can by year EPS the in that -- of by you where gave quarter the what $X.XX. from? that's your

Michael Hartshorn

Yes.

better at end end. that, top what raised it on I you X, beat full and in the we quarter we top year $X.XX. the a to by We think the then by is the the did way look lose

Operator

from comes with question Bernstein. Aneesha of the Sherman line next the And

Aneesha Sherman

get X% quarter stack. X-year more half of back half -- and bit you you and thinking about kind your comp stack to implies the about minus year? back this to guidance stack the QX then implies closer for for guidance about you're a through a why X%, to year? your So pickup little your are was QX for that then minus optimistic deceleration of in Can and the how a more the X talk And to cautious progression your the of about

Michael Hartshorn

Aneesha. Sure,

hard all COVID. stack X-year stimulus fiscal it's and look at the these on think a with to I

saw a is that we on quarter a in changed year exited What X-year we that's the first So as progressed we're in a and place went and quarter. weather stack and through the improved would into really we it, that had stack year. move what's looking time. improved the that over And plan X-year stack the guidance pre-COVID, and for how at support

Aneesha Sherman

Okay.

So the embedding you the in the stack through to just clarify, an X-year of improvement course are year?

Michael Hartshorn

yes. Correct,

Operator

the next from Cowen. with Zuber question of the And Krista line comes TD

Krista Zuber

for It's Krista John. on

inventory, a a least several at quick here fairly quarters of two question. -- Just On sizable you've had declines.

this through And declines of expectations. basis you your year? Just pull the of to about the of expect quarterly we do balance line wondering how on thinking should point, growth you in at with think continue year. the end sort sales through some it Or you're a

Michael Hartshorn

-- year Sure. instance, down at look but eased, were against XX%, were a surplus you for elevated receipts. first and we we times up inventories had we chain when last the if It's quarter, of early supply lead

as in we year. recede, and get we through lower we elevated more last So excess fourth year should what and third you it first move the quarter -- started year, you'd the inventory be the the comparable, to the inventory half year had of the last expect but with in with that given

Operator

for no questions. I'd at any seeing pass And further to this back like Rentler Barbara comments. over it to I'm closing time,

Barbara Rentler

for interest joining your for and Thanks us Stores. Ross today in

Operator

does Thank This conclude today's you, conference. everyone.

day. Thank your You your for lines may time. a have at and participation, you disconnect this great

Ross Stores (ROST) 18 May 232023 Q1 Earnings call transcript