Latest news with #Conroy
Hindustan Times
3 days ago
- Business
- Hindustan Times
Ross Stores responds to tariff concerns — Will prices go up?
Ross stores, the retail chain responsible for providing high-quality, low-priced apparel, footwear, and home items, may soon face an increase in prices. The 2,205 Ross Dress for Less and DD'S Discounts stores spread across 44 states are at the risk of rolling out higher prices and reduction of discounts for customers sometime in June or July due to tariff restrictions and other profitability threats being faced by the company, according to Merca. During a recent earnings call to discuss the retail chain's performance in 2025's first quarter, CEO Jim Conroy said on May 22 that the company had suffered a 'slower start to the spring selling season'. With inflation, changing consumer preferences, and a rise in Chinese tariffs, Conroy revealed that Ross is examining whether the company needs to up merchandise prices to deal with the blowback. 'As tariffs remain at elevated levels, we will be working to find the right combination of pricing versus merchandise margin compression. We believe we have several levers available to minimize the overall impact, but it is possible that we will see short-term pressure on our profitability,' he said. Though a rise in prices could possibly be the only option on the table, COO Michael Hartshorn also clarified that this hike will be based on category and use of items. 'We want to be very careful with price increases,' said Hartshorn. 'We don't want to be the first one to raise prices, and we want to make sure that we keep our value or pricing umbrella versus mainstream retail. And that's a substantial value gap to make sure we're delivering the values that customers come to expect.' In the first quarter earnings reports for 2025, the retailer revealed a 2% fall in net income this year to $479 million. While comparable store sales remained stagnant, a 2.7% year-over-year drop was reported in average customer visits per store. These numbers were reported in a climax of changing customer preferences that Conroy described as 'a shift towards more functional items versus discretionary items'. President Trump's tariff war with China is also a matter of concern to the company since more than half of its cost-effective retail imports are sourced from the latter. 'The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable,' said Conroy. 'We will focus on what we can control and manage the business conservatively.' Trump has been engaged in a retaliatory tariff war with China ever since he first announced the new tariff imports on February 1. Currently, there is a 90-day pause on the new tariffs announced by both sides which steeped as high as 125%. The company is preparing in advance to face higher import taxes in 60 countries come July when the pause opens up. Apart from considering a hike in pricing to break even, Ross is also looking into sourcing goods from other countries with little to no tariffs. Many other retailers such as Walmart, Nike, Shein, Adidas, Target, Best Buy, and Mattel have already announced a hike in prices for customers who are already preparing to deal with the financial blowback.
Yahoo
5 days ago
- Business
- Yahoo
Shop at Ross? Retailer says tariffs could increase prices
Add Ross Stores to the retailers expecting to raise some prices due to tariffs. Ross Stores, which operates Ross Dress for Less and DD's Discounts, may be forced to raise prices on some products, executives said during the company's first quarter earnings call on May 22. The retailer reported flat sales for the 13-week period ending May 3, compared to the same period a year ago. Net income of $479 million dipped nearly 2% from a year ago, but met expectations of analysts polled by S&P Global Market Intelligence. Sales increased each month during the quarter, but the effects of inflation and tariffs and inflation loom over the coming weeks, CEO Jim Conroy said in comments in the earnings release. 'Heightened macroeconomic and geopolitical uncertainty persists, most notably prolonged inflation and evolving trade policies," he said. National Hamburger Day 2025: Free food at Burger King, deals at Wendy's, Dairy Queen, more Trade policies continue to shift. Earlier this month, President Donald Trump reached a U.S.-China agreement to lower tariff rates on trade for 90 days – cutting the tariffs on Chinese imports from 145% on most goods to 30% tariff, while China reduced tariffs on U.S. goods from 125% to 10%. While Trump called on Walmart to "eat the tariffs," Ross Stores is among retailers including Walmart, Amazon, and Best Buy preparing customers for higher prices on some products. Half of the goods sold at its stores originate from China, Conroy said. "As such, we expect pressure on our profitability if tariffs remain at elevated levels," he said. Like other retailers, Ross Stores is trying multiple strategies to "mitigate the cost" of tariffs, but expects consumers to begin feeling their impact in late June and early July, chief operating officer Michael Hartshorn told analysts during the earnings call, according to a transcript from S&P Global Market Intelligence. In addition to finding products made in other countries, Ross Stores is working with suppliers to "get better costing, which we've done at this point, even in the second quarter," he said. Lastly, the retailer can increase the price charged for products, "but we want to be very careful with price increases," Hartshorn said. "We don't want to be the first one to raise prices, and we want to make sure that we keep our value or pricing umbrella versus mainstream retail." In the months ahead, this dilemma will be felt by consumers and retailers – many of which rely on goods from China, Conroy said. "At the end of the day, there's a lot of product, particularly over the next 6 months, that is going to be imported from China for us and for every other retailer and every other off-price company," he said. Ross Stores projected flat to 3% sales during the current 13-week period ending Aug. 2, compared to a 4% increase a year ago. Contributing: Kinsey Crowley, Margie Cullen, Kathryn Palmer Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day This article originally appeared on USA TODAY: Ross Stores: Tariffs will likely lead to higher prices
Express Tribune
6 days ago
- Business
- Express Tribune
Ross Stores CEO makes bleak prediction amidst Trump China tariffs
Ross Dress for Less is grappling with a serious challenge as its first-quarter earnings for 2025 reveal stagnant sales and a decline in net income. The discount retailer, facing a shrinking customer base, is contemplating significant adjustments that could affect shoppers in the near future. For the first quarter, Ross Stores reported flat comparable sales compared to the same period last year, and net income of $479 million, which marked a nearly 2% drop from the previous year. This decline comes amid a steady decrease in customer visits, with data from showing a 2.7% year-over-year drop in visits per store. CEO Raises Alarm on Inflation and Tariffs In a May 22 earnings call, Ross CEO Jim Conroy addressed the troubling figures, attributing the company's weaker performance to both prolonged inflation and a shift in customer buying patterns. Conroy noted that consumers are increasingly gravitating toward functional items rather than discretionary products. He also highlighted tariffs as an emerging threat to profitability. The recent 10% tariff on imports imposed by the Trump administration, particularly on goods from China, is already affecting Ross, with over 50% of its products sourced from the country. Conroy warned that these tariffs, combined with rising inflation, could result in higher prices for consumers in the coming months. "The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable," said Conroy. "During these uncertain times, we will focus on what we can control and manage the business conservatively." Rising Prices Loom as Tariffs Impact Costs With tariffs expected to remain at elevated levels, Ross is exploring ways to adjust its pricing strategy. Conroy confirmed that the company will consider raising prices on certain items but stressed that the increases would be strategically planned, depending on whether the item is deemed functional or discretionary. "We want to be very careful with price increases," said Ross Chief Operating Officer Michael Hartshorn. "We don't want to be the first one to raise prices, and we want to make sure that we keep our value or pricing umbrella versus mainstream retail." While Ross aims to avoid a drastic price hike, the company plans to start adjusting prices around June or July this year. In addition to raising prices, Ross is negotiating with suppliers to manage import costs and is looking into sourcing products from alternative countries, though this shift is expected to take months and will not affect pricing until 2026. Shifting Consumer Habits As the prospect of higher prices looms, consumers are already altering their shopping habits in response to anticipated cost increases. A recent survey by market research firm Numerator found that 83% of Americans are preparing for the impact of tariffs by searching for sales and coupons, delaying purchases, and buying fewer imported goods. Ross Stores, known for offering discounted prices, is preparing for a challenging period as both the broader economic environment and consumer behaviour continue to evolve. The company's strategy in the months ahead will determine how it navigates the turbulent landscape of rising tariffs, inflation, and changing shopping trends.
The Citizen
6 days ago
- Business
- The Citizen
Reddam House learners win Inspired Education's top global scholarship
The Inspired Education Group announced Zuri Conroy and Mackensie McKay as SA's newest recipients of the Nsouli Scholars Programme. Conroy, from Reddam House Constantia, and McKay, from Reddam House Bedfordview, were selected after a rigorous selection process recognising academic excellence, leadership and co-curricular achievement. Both girls began high school at Inspired's Reddam House schools in January. As Inspired's flagship scholarship initiative, the Nsouli Scholars Programme was established in honour of Nadim Nsouli, the founder, chairperson and CEO of the Inspired leading global group of premium schools. ALSO READ: Little Eden takes disability awareness to Reddam House The scholarship offers life-changing opportunities to exceptional learners globally who would not otherwise have access to join the Inspired Group. It fully funds tuition and, where applicable, boarding for the duration of a learner's senior school years. About 16 new scholarships are awarded annually across Inspired schools worldwide. Conroy and McKay exemplify the core pillars of an Inspired education: Academic excellence, leadership and a strong commitment to co-curricular achievement in sports or the performing arts. Both girls distinguished themselves through their resilience, determination and ability to inspire those around them. 'At Inspired, we believe talent should never be limited by circumstance,' said Nsouli. 'Zuri and Mackensie represent the future – determined, compassionate and courageous young women who are already making an impact. ALSO READ: Reddam House stages dance extravaganza 'We are proud to support their journeys and welcome them into our global community of schools.' The Nsouli Scholars Programme supports up to 50 learners across Inspired's global network at any one time. Conroy is driven by a strong academic discipline, particularly excelling in the economic and management sciences and mathematics. She is passionate about justice and aspires to become a lawyer. Equally motivated by her values and purpose, she dreams of one day sponsoring a student through school. When speaking about the scholarship, she said, 'I'm most excited about the chance to grow in academics and water polo and be part of a school that offers many opportunities. It's a fresh start where I can truly shine.' McKay joined Reddam House Bedfordview as a Nsouli Scholar following an outstanding academic and sporting career at Bedfordview Primary School. ALSO READ: Help Reddam House player represent SA for Rugby World Cup in Ireland She was a top academic achiever, having been the Dux Scholar for five consecutive years, maintaining an average consistently in the high 90s. She is also part of a team that won national titles and will compete in the World Championships in Germany this year. Stephen Hazley, the executive head of Reddam House Bedfordview, said, 'Mackensie is an exceptional learner who embodies excellence, compassion and perseverance. She balances elite sport and academics with quiet strength and humility. We are honoured to have her at Reddam Bedfordview.' McKay described the scholarship as an incredible opportunity that reinforced her belief in the power of hard work and focus. 'I want to keep improving. Whether it's gymnastics or school, I want to be the best version of myself every day,' she said. 'Being chosen as a Nsouli Scholar is my proudest achievement, along with being an SA gymnastics champion. 'I've trained for years to get here. My dream is to become a paediatrician and help children in Africa live healthier lives. 'That's where my heart is,' she added. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Yahoo
22-05-2025
- Business
- Yahoo
Ross Stores Reports First Quarter Earnings
Provides Second Quarter Guidance DUBLIN, Calif., May 22, 2025--(BUSINESS WIRE)--Ross Stores, Inc. (Nasdaq: ROST) today reported earnings per share for the 13 weeks ended May 3, 2025 of $1.47, compared to $1.46 in earnings per share for the 13 weeks ended May 4, 2024. Net income for the period was $479 million versus $488 million last year. Sales for the first quarter of 2025 were $5.0 billion with comparable store sales flat versus last year. Jim Conroy, Chief Executive Officer, commented, "Despite the slower start to the spring selling season in February, our monthly sales performance improved sharply, month after month, for the balance of the quarter. For the first quarter, sales and earnings performed at the high end of our expectations while operating margin of 12.2% was flat year-over-year." Update on Shareholder Payouts During the first quarter of fiscal 2025, a total of 2.0 million shares of common stock were repurchased for an aggregate price of $263 million under the Company's two-year $2.1 billion authorization approved by its Board of Directors in March 2024. The Company remains on track to buy back a total of $1.05 billion in common stock during fiscal 2025 and complete the program as planned. Fiscal 2025 Guidance Looking ahead, Mr. Conroy commented, "Heightened macroeconomic and geopolitical uncertainty persists, most notably prolonged inflation and evolving trade policies. While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. As such, we expect pressure on our profitability if tariffs remain at elevated levels. Given the varying nature of tariff announcements, we are only providing an outlook for the second quarter at this time and are withdrawing our previously provided annual sales and earnings guidance." Mr. Conroy continued, "For the 13 weeks ending August 2, 2025, comparable store sales are now projected to be flat to up 3% on top of a 4% gain in the second quarter of last year. Earnings per share for the second quarter are now projected to be in the range of $1.40 to $1.55, versus earnings per share of $1.59 for the prior year period ended August 3, 2024. This earnings guidance range includes an approximate $0.11 to $0.16 per share cost impact from announced tariffs." Mr. Conroy concluded, "The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable. During these uncertain times, we will focus on what we can control and manage the business conservatively. We have a seasoned executive team, a flexible off-price business model, and a strong financial foundation that should enable us to navigate through this uncertain environment." The Company will host a conference call on Thursday, May 22, 2025 at 4:15 p.m. Eastern time to provide additional details concerning its first quarter results and management's outlook for the second quarter. A real-time audio webcast of the conference call will be available in the Investors section of the Company's website, located at An audio playback will be available at 201-612-7415, PIN #13753720 until 8:00 p.m. Eastern time on May 29, 2025, as well as on the Company's website. Forward-Looking Statements: This press release and the related conference call remarks contain forward-looking statements regarding, without limitation, projected sales, costs, and earnings, planned new store growth, capital expenditures, and other matters. These forward-looking statements reflect our then-current beliefs, plans, and estimates with respect to future events and our projected financial performance and operations, and they are subject to risks and uncertainties which could cause our actual results to differ materially from management's current expectations. The words "plan," "expect," "target," "anticipate," "estimate," "believe," "forecast," "projected," "guidance," "outlook," "looking ahead," and similar expressions identify forward-looking statements. Risk factors for Ross Dress for Less® ("Ross") and dd's DISCOUNTS® include without limitation, risk from changes in U.S. tax, tariff, or trade policy regarding apparel, shoes, and home-related merchandise produced in China and other countries could significantly and adversely affect our business. While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. Elevated tariff levels on goods imported into the United States from China and other countries may disrupt our merchandise purchasing patterns, increase our costs, and put pressure on our margins and profitability; uncertainties arising from the macroeconomic environment, including inflation and the price of necessities, high interest rates, housing costs, energy and fuel costs, financial and credit market conditions, recession concerns, geopolitical conditions, and public health and public safety issues may affect consumer confidence, consumer disposable income, and shopping behavior, as well as our costs; unexpected changes in the level of consumer spending on, or preferences for, apparel and home-related merchandise could adversely affect us; competitive pressures in the apparel and home-related merchandise retailing industry; our need to effectively manage our inventories, markdowns, and inventory shortage in order to achieve our planned gross margins; risks associated with importing and selling merchandise produced in China and other countries, including risks from supply chain disruption, shipping delays, and higher than expected ocean freight costs; unseasonable weather or extreme temperatures that may affect shopping patterns and consumer demand for seasonal apparel and other merchandise; our dependence on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to anticipate consumer preferences and to purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices; information or data security breaches, including cyber-attacks on our transaction processing and computer information systems, which could disrupt our operations, and result in theft or unauthorized disclosure of confidential and valuable business information, such as customer, credit card, employee, or other private and valuable information that we handle in the ordinary course of our business; disruptions in our supply chain or in our information systems, including from ransomware or other cyber-attacks could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner; our need to obtain acceptable new store sites with favorable consumer demographics to achieve our planned store openings; our need to expand in existing markets and enter new geographic markets in order to achieve planned growth and market penetration; consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs; an adverse outcome in various legal, regulatory, or tax matters, or the adoption of new federal or state tax legislation that increases tax rates or adds new taxes could increase our costs; damage to our corporate reputation or brands could adversely affect our sales and operating results; our need to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies; our need to effectively advertise and market our business; possible volatility in our revenues and earnings; a public health or public safety crisis, or a natural or man-made disaster in California or another region where we have a concentration of stores, offices, or a distribution center could harm our business; our need to maintain sufficient liquidity to support our continuing operations and our new store openings. Other risk factors are set forth in our SEC filings including the Form 10-K for fiscal 2024 and fiscal 2025 Form 8-Ks on file with the SEC. The factors underlying our forecasts and plans are dynamic and subject to change. As a result, any forecasts or forward-looking statements speak only as of the date they are given and do not necessarily reflect our outlook at any other point in time. We disclaim any obligation to update or revise these forward-looking statements. About Ross Stores, Inc. Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2024 revenues of $21.1 billion. Currently, the Company operates Ross Dress for Less® ("Ross"), the largest off-price apparel and home fashion chain in the United States with 1,847 locations in 44 states, the District of Columbia, and Guam. Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 358 dd's DISCOUNTS® stores in 22 states that feature a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. Additional information is available at Ross Stores, Inc. Condensed Consolidated Statements of Earnings Three Months Ended ($000, except stores and per share data, unaudited) May 3, 2025 May 4, 2024 Sales $ 4,984,971 $ 4,858,067 Costs and Expenses Cost of goods sold 3,581,366 3,490,672 Selling, general and administrative 797,135 776,282 Operating income 606,470 591,113 Interest income, net (34,409 ) (45,950 ) Earnings before taxes 640,879 637,063 Provision for taxes on earnings 161,630 149,073 Net earnings $ 479,249 $ 487,990 Earnings per share Basic $ 1.48 $ 1.47 Diluted $ 1.47 $ 1.46 Weighted-average shares outstanding (000) Basic 324,877 331,258 Diluted 327,005 333,737 Store count at end of period 2,205 2,127 Ross Stores, Inc. Condensed Consolidated Balance Sheets ($000, unaudited) May 3, 2025 May 4, 2024 Assets Current Assets Cash and cash equivalents $ 3,783,413 $ 4,654,316 Accounts receivable 181,004 165,436 Merchandise inventory 2,669,849 2,461,699 Prepaid expenses and other 240,837 225,911 Total current assets 6,875,103 7,507,362 Property and equipment, net 3,827,541 3,515,193 Operating lease assets 3,325,849 3,210,455 Other long-term assets 276,123 258,772 Total assets $ 14,304,616 $ 14,491,782 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 2,163,954 $ 2,119,114 Accrued expenses and other 616,008 612,244 Current operating lease liabilities 702,025 679,596 Accrued payroll and benefits 274,877 313,305 Income taxes payable 180,083 212,700 Current portion of long-term debt 498,812 948,590 Total current liabilities 4,435,759 4,885,549 Long-term debt 1,016,897 1,513,200 Non-current operating lease liabilities 2,797,935 2,693,259 Other long-term liabilities 268,698 245,096 Deferred income taxes 209,249 206,726 Commitments and contingencies Stockholders' Equity 5,576,078 4,947,952 Total liabilities and stockholders' equity $ 14,304,616 $ 14,491,782 Ross Stores, Inc. Condensed Consolidated Statements of Cash Flows Three Months Ended ($000, unaudited) May 3, 2025 May 4, 2024 Cash Flows From Operating Activities Net earnings $ 479,249 $ 487,990 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 115,938 109,186 Stock-based compensation 39,296 40,447 Deferred income taxes 22,209 10,488 Change in assets and liabilities: Merchandise inventory (225,336 ) (269,479 ) Other current assets (58,426 ) (57,685 ) Accounts payable 67,182 179,376 Other current liabilities (173,946 ) (269,973 ) Income taxes 139,086 138,959 Operating lease assets and liabilities, net 1,351 2,267 Other long-term, net 3,112 (2,655 ) Net cash provided by operating activities 409,715 368,921 Cash Flows From Investing Activities Additions to property and equipment (207,378 ) (136,249 ) Net cash used in investing activities (207,378 ) (136,249 ) Cash Flows From Financing Activities Issuance of common stock related to stock plans 6,143 6,224 Treasury stock purchased (60,131 ) (70,480 ) Repurchase of common stock (262,521 ) (262,479 ) Dividends paid (133,300 ) (123,298 ) Payments of long-term debt (700,000 ) — Net cash used in financing activities (1,149,809 ) (450,033 ) Net decrease in cash, cash equivalents, and restricted cash and cash equivalents (947,472 ) (217,361 ) Cash, cash equivalents, and restricted cash and cash equivalents: Beginning of period 4,796,462 4,935,441 End of period $ 3,848,990 $ 4,718,080 Reconciliations: Cash and cash equivalents $ 3,783,413 $ 4,654,316 Restricted cash and cash equivalents included in prepaid expenses and other 17,050 14,666 Restricted cash and cash equivalents included in other long-term assets 48,527 49,098 Total cash, cash equivalents, and restricted cash and cash equivalents: $ 3,848,990 $ 4,718,080 Supplemental Cash Flow Disclosures Interest paid $ 35,939 $ 40,158 Income taxes paid (refunded), net $ 334 $ (375 ) View source version on Contacts Adam OrvosExecutive Vice President,Chief Financial Officer(925) 965-4550 Connie KaoGroup Vice President, Investor Relations(925)
