Ross Stores: ‘Treasure Hunt Environment’ Drives Store Sales

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Sales </h1> <div class="post-info-right left relative article-author-box mb-2"> <div class="post-info-name"> <div class="row"> <div class="col-6 my-auto"> <span class="post-info-text small muted text-uppercase">By</span> <span class="author-name vcard fn small muted text-uppercase fw-bold" itemprop="author"> <a href="https://www.pymnts.com/author/pymnts/" title="Posts by PYMNTS" rel="author">PYMNTS</a> </span> <span class="small muted d-none d-md-inline"> | </span> <span class="small muted text-uppercase d-block d-md-inline">November 22, 2024</span> </div> <div class="col-6 text-end my-auto">  <a href="https://www.facebook.com/sharer.php?u=https://www.pymnts.com/earnings/2024/ross-stores-treasure-hunt-environment-drives-off-price-store-sales/&t=Ross+Stores%3A+%E2%80%98Treasure+Hunt+Environment%E2%80%99+Drives+Off-Price+Store+Sales" title="Share on Facebook"><i class="bi bi-facebook me-1 text-dark"></i></a><a href="https://twitter.com/share?text=Ross+Stores%3A+%E2%80%98Treasure+Hunt+Environment%E2%80%99+Drives+Off-Price+Store+Sales -&url=https://www.pymnts.com/earnings/2024/ross-stores-treasure-hunt-environment-drives-off-price-store-sales/" title="Tweet This Post"><i class="bi bi-twitter-x mx-1 mx-1 text-dark"></i></a><a href="https://www.linkedin.com/shareArticle?mini=true&url=https://www.pymnts.com/earnings/2024/ross-stores-treasure-hunt-environment-drives-off-price-store-sales/&title=Ross+Stores%3A+%E2%80%98Treasure+Hunt+Environment%E2%80%99+Drives+Off-Price+Store+Sales&summary=&source=" title="Share on LinkedIn"><i class="bi bi-linkedin mx-1 mx-1 text-dark"></i></a><a href="mailto:?subject=Ross Stores: ‘Treasure Hunt Environment’ Drives Off-Price Store Sales&BODY=I found this article interesting and want to share it with you. Check it out: https://www.pymnts.com/earnings/2024/ross-stores-treasure-hunt-environment-drives-off-price-store-sales/"><i class="bi bi-envelope-fill ms-1 me-0 ms-1 me-md-1 text-dark"></i></a> <span class="d-none d-md-inline"> | </span> <span class="d-block d-md-inline"> <button class="d-none d-lg-inline-block noHover audioPlay border-0 px-0 article-play-button fw-normal py-1 my-0" type="button" value="Play"> <i class="bi bi-play-circle-fill mx-1 text-dark"></i></button> <button class="d-lg-none noHover audioPlay border-0 px-0 article-play-button fw-normal py-1 my-0" type="button" value="Play"><span class="listenToArticle small text-uppercase"></span><i class="bi bi-play-circle-fill text-dark mx-1"></i></button> <button class="noHover audioPause border-0 px-0 article-pause-button py-1 my-0"><i class="bi bi-pause-circle-fill text-dark mx-0"></i></button> </span> </div></div> </div> </div> <div id="post-feat-img" class="left relative mb-3"> <img class="py-desktop w-100 h-auto pymnts-featured-sm-image " width="1000" height="600" alt="" src="https://www.pymnts.com/wp-content/uploads/2024/05/Ross-Stores-1.jpg?w=768" /> </div> <div class="post-feat-text"> </div>  <div id="pymnts-content2297272" class="single lh-article mt-1 lnk-article"> <p><a class="editor-rtfLink" href="https://investors.rossstores.com/" target="_blank" rel="noopener"><span data-preserver-spaces="true">Ross Stores</span></a><span data-preserver-spaces="true"> aims to draw customers and drive sales by offering value and a “treasure hunt environment,” executives said Thursday (Nov. 21) during the off-price retailer’s quarterly earnings call.</span></p> <p><span data-preserver-spaces="true">At its </span><a class="editor-rtfLink" href="https://www.rossstores.com/" target="_blank" rel="noopener"><span data-preserver-spaces="true">Ross Dress for Less</span></a><span data-preserver-spaces="true"> and </span><a class="editor-rtfLink" href="https://www.ddsdiscounts.com/" target="_blank" rel="noopener"><span data-preserver-spaces="true">dd’s Discounts</span></a><span data-preserver-spaces="true"> stores, which are largely focused on apparel and home goods, the company turns goods quickly by offering “the right goods at the right value,” Ross Stores Vice Chair and CEO </span><a class="editor-rtfLink" href="https://investors.rossstores.com/management/barbara-rentler" target="_blank" rel="noopener"><span data-preserver-spaces="true">Barbara Rentler</span></a><span data-preserver-spaces="true"> said during the call.</span></p> <p><span data-preserver-spaces="true">“It’s really about the value you’re putting on the floor, the products and the value,” Rentler said. “Then it will turn quickly because the customer knows in a treasure hunt environment, ‘If I don’t buy it, it won’t be there next week.’”</span></p> <p><span data-preserver-spaces="true">Ross Stores saw a 1% gain in comparable store sales in the quarter that ended Nov. 2, while seeing a 3% gain in the nine months ended Nov. 2, according to a Thursday </span><a class="editor-rtfLink" href="https://investors.rossstores.com/news-releases/news-release-details/ross-stores-reports-third-quarter-earnings-updates-fourth-4" target="_blank" rel="noopener"><span data-preserver-spaces="true">earnings release</span></a><span data-preserver-spaces="true">.</span></p> <p><span data-preserver-spaces="true">Rentler said the company was disappointed with the slowdown in sales gains during the quarter but added that its earnings were better than expected due to a higher operating margin and lower costs for incentives, freight and distribution, according to the release.</span></p> <p><span data-preserver-spaces="true">She attributed Ross Stores’ slower rate of sales growth to the high costs of necessities that continue to pressure customers’ discretionary spending, severe weather from Hurricanes Helene and Milton, and unseasonably warm weather, per the release.</span></p> <p><span data-preserver-spaces="true">Rentler also said in the release that “we believe we should have better executed some of our merchandising initiatives.”</span></p> <p><span data-preserver-spaces="true">“I think we had some execution issues in a couple of businesses that we’ve identified and that we think we can correct — didn’t probably move as quickly as we should have in some things where there were, I would say, shifts in the world from a product perspective,” Rentler said during the call. “So, I feel that’s an opportunity, and we missed some volume there.”</span></p> <p><span data-preserver-spaces="true">Looking ahead, Ross Stores expects to see comparable store sales growth of 2% to 3% in the quarter ending Feb. 1, 2025, according to the earnings release.</span></p> <p><span data-preserver-spaces="true">“As you get into the fourth quarter, many of the businesses that are really important during the holiday season, whether it’s gifting or cosmetics, </span><span data-preserver-spaces="true">those businesses</span><span data-preserver-spaces="true"> have been strengths for us,” Rentler said during the call. “So, as we go into that period, we’re going to some of our strongest businesses.”</span></p> <div class="pymnt-b91ac75ec77539b51eaeac8874d77dee pymnt-bottom-of-article" id="pymnt-b91ac75ec77539b51eaeac8874d77dee"></div> <div id="bottom-ad"> <div data-pymnt-trackid="2439346" data-pymnt-trackbid="1" class="pymnt-target" id="pymnt-105029146"> <script type="text/javascript"> var rnd = window.rnd || Math.floor(Math.random()*10e6); var pid848355 = window.pid848355 || rnd; var plc848355 = window.plc848355 || 0; var abkw = window.abkw || ''; var absrc = 'https://servedbyadbutler.com/adserve/;ID=188401;size=0x0;setID=848355;type=js;sw='+screen.width+';sh='+screen.height+';spr='+window.devicePixelRatio+';kw='+abkw+';pid='+pid848355+';place='+(plc848355++)+';rnd='+rnd+'';var _absrc = absrc.split("type=js"); absrc = _absrc[0] + 'type=js;referrer=' + 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pathTitles.push({ path: location.pathname, title: Q('h1').innerText }); triggerPageView(curPath); loadNextArticle(true); } function handleScrolling() { //console.log('handleScrolling', curArticle, curPath); let curArticleBox = null; let curArticleId = null; if (curArticle) { curArticleId = curArticle.getAttribute('id'); //console.log('curArticleId', curArticleId); curArticleBox = curArticle.getBoundingClientRect(); //console.log('curArticle box', window.innerHeight, curArticleBox) if (curArticleBox.y <= window.innerHeight) { console.group(); console.log('handleScrolling have curArticle'); document.title = curTitle; const state = { 'page_id': 1, 'user_id': 5 } history.replaceState(state, '', curPath); const urlInfo = curArticle.getAttribute('urlinfo'); console.log('curArticle urlInfo', urlInfo); let test = partialsAlreadyLoaded.indexOf(urlInfo); console.log('test', test, partialsAlreadyLoaded.length); ++test; if (test && test === partialsAlreadyLoaded.length) { curArticle = null; loadNextArticle(); 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console.log('curPath', curPath); } else { showingArticle = `article-number-${num - 1}`; console.log('showingArticle', showingArticle); curArticle = I(`article-number-${num}`); console.log('curArticle', curArticle); curPath = curArticle.getAttribute('urlinfo'); console.log('curPath', curPath); const urlInfo = I(showingArticle).getAttribute('urlinfo'); console.log('urlinfo', urlInfo); const url = new URL(urlInfo); triggerPageView(url.pathname, true); const state = { 'page_id': 1, 'user_id': 5 } history.replaceState(state, '', urlInfo); } } } let singleContainer = I('singleContainer').getBoundingClientRect(); if (sidebarWrap) { sidebarRect = sidebarWrap.getBoundingClientRect(); sidebarTop = sidebarRect.y; sidebarBottom = sidebarRect.y + sidebarRect.height; if (sidebarFreezeTrigger && window.scrollY < sidebarFreezeTrigger) { sidebarFreezeTrigger = null; sidebarWrap.style.position = 'static'; sidebarWrap.style.bottom = 'auto'; } else if (sidebarBottom <= window.innerHeight) { if(sidebarWrap.style.position !== 'fixed') { sidebarWrap.style.position = 'fixed'; sidebarWrap.style.bottom = '0px'; sidebarWrap.style.width = `${(singleContainer.width * .25) - 24}px`; sidebarFreezeTrigger = window.scrollY; } } } } function handleVideoResizing() { console.log('videoResize'); if (subscribeIsShown) setVideoSubscribeLocation(); } document.addEventListener('fullscreenchange', handleVideoResizing, false); document.addEventListener('mozfullscreenchange', handleVideoResizing, false); document.addEventListener('MSFullscreenChange', handleVideoResizing, false); document.addEventListener('webkitfullscreenchange', handleVideoResizing, false); function pageIsResized() { if (subscribeIsShown) setVideoSubscribeLocation(); let sidebarContainer = I('sidebar-container'); if(!sidebarContainer) return; let size = 'xxl'; if(window.innerWidth < 576) size = 'xs'; else if(window.innerWidth < 768) size = 'md'; else if(window.innerWidth < 992) size = 'lg'; else if(window.innerWidth < 1200) size = 'xl'; else size = 'xxl'; console.log(size); switch(size) { case 'xs': case 'md': sidebarContainer.classList.remove('d-lg-block'); 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