CLAIM #574 · Ross Stores Inc (ROST) · 2022Q4 earnings call · Feb 27, 2023 · due Feb 27, 2026
“And then longer term, we think if we can grow the 3% to 4% comp as we did historically prior to COVID that we'll be able to leverage the P&L.”
Michael Hartshorn · COO
How to check this claim
Look at: Comparable store sales growth (%) and operating margin leverage, annual
It came true if: Comparable sales growth >= 3% for the fiscal year, with operating margin higher than prior year
Where: Company quarterly/annual earnings release and income statement (10-K)
In context
“rgins to comp, but with higher wages now embedded into your cost structure, has that sensitivity changed? Or is it still a similar sensitivity as what you've talked about in the past? Michael Hartshorn: Aneesha, on the guidance, it's hard to comment on structural in this environment. As we guide the year, it's really a function of us wanting to be very conservative in a blasting inflationary environment and a macro economy that we'll see how that plays out later in the year. So I don't think there's anything to read into that at this point. Obviously, we hope to beat the guidance. We think it's a good way to run our business in an uncertain environment. In terms of the long-term algorithm, it certainly doesn't change as I said earlier, that a beat to comp is 10 to 15 basis points upside. And then longer term, we think if we can grow the 3% to 4% comp as we did historically prior to COVID that we'll be able to leverage the P&L. Operator: And our final question comes from the line of Corey Tarlowe with Jefferies. Corey Tarlowe: You mentioned that shoes had done pretty well a few times. Is there any way to parse out maybe whether it was in formal or casual, what did better? And then I know availability is quite robust, but across your good, better, best strategy, is there any particular segment within those 3 that's maybe you're seeing a little bit better availability. And then just lastly, on CapEx. Historically, you're usually around, I think, like $500 million or so in CapEx. And now I think in this year, you're expecting to do $800 million and in this coming year as well, another $800 million. So could you just parse out maybe what the incremental spend is really going to be? I know you talked a little bit a”
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SEC filings for ROST ↗ · Claim quote is verbatim from the 2022Q4 earnings call.