Ross Stores easily topped expectations for its fourth quarter, but warned that housing, food and gasoline costs continue to put pressure on its customers.
In a statement, CEO Barbara Rentler cited the “sustained” sales momentum that began in its second quarter and continued through the holiday season, but cautioned there remains “ongoing uncertainty in the macroeconomic and geopolitical environments”.
“While inflation has moderated, housing, food, and gasoline costs remain elevated and continue to pressure our low-to-moderate income customers’ discretionary spend,” she said. “As a result, while we hope to do better, we believe it is prudent to continue to take a conservative approach to forecasting our business in 2024.”
Ross, which has set a long-term target of at least 2,900 Ross Dress for Less and 700 DDs Discounts, will continue its store growth in 2024. It expects to open about 90 new locations, including 75 Ross stores and 15 DD’s stores. By comparison, Ross opened 71 Ross stores and 23 DD’s in 2023.
