CLAIM #665 · Ross Stores Inc (ROST) · 2023Q4 earnings call · Mar 4, 2024 · due Feb 1, 2025
“Lorraine, then on just the other margin opportunities from a freight standpoint, from a domestic freight standpoint, we do expect to see some improvement for the full year, but to a lesser extent than we saw last year.”
Michael Hartshorn · COO
How to check this claim
Look at: Domestic freight cost benefit to gross margin, year-over-year, full fiscal year 2024
It came true if: Freight-related gross margin improvement > 0 bps but less than the prior year's (fiscal 2023) reported freight benefit in bps
Where: Management commentary on gross margin drivers (10-K / Q4 earnings call, fiscal 2024 results)
In context
“in '23 by offering more brands that are sharply priced to deliver that value proposition the customer wants. But what I would say to you also is it's a tiered strategy; a good, better, best strategy. So in terms of gross margin expansion from the pure merchandising side. What I would say to you is this strategy really -- we really believe that this will drive sales and it will drive market share. And that's really how we're looking at it. Because that's what the customer has voted on all year, and we feel like it's a strategy that's broad-based in the entire box. Certainly, there are some businesses that have more opportunities than others. But that's really how we came to this conclusion and the customer has been voting, and that's really what she's been voting on. Michael Hartshorn: Lorraine, then on just the other margin opportunities from a freight standpoint, from a domestic freight standpoint, we do expect to see some improvement for the full year, but to a lesser extent than we saw last year. Operator: And the next question comes from the line of Matthew Boss with JPMorgan. Matthew Boss: And congrats on another great quarter. So Barbara, I guess maybe could you elaborate on drivers that you think really were behind? I think this is the best fourth quarter performance in more than 10 years, if I exclude the pandemic. Maybe what you saw across categories, do you think that you're attracting a new customer? And maybe just the decision to raise your initial comp view for 2024 to the 2% to 3% relative to historical 1% to 2%? And then just one for Adam. Any change to bottom line flow-through in the model for 2024 as we think about incremental comp potential upside? Michael Hartshorn: It's Michael Hartshorn. Just on the customer overall. It's hard to see whether it's a new custome”
Verify independently
SEC filings for ROST ↗ · Claim quote is verbatim from the 2023Q4 earnings call.