Ross Stores, Inc. stock research
FY2023 Q2
Ross Stores (ROST) Gross Margin — Quarter Ended Jul 29, 2023
Gross profit and revenue both increased compared to the previous quarter and the same quarter last year. Cost of revenue also rose, but at a slower rate, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2023 Q2
Gross profit and revenue both increased compared to the previous quarter and the same quarter last year. Cost of revenue also rose, but at a slower rate, resulting in an improved gross margin.
- The rise in gross margin was driven by revenue growing faster than cost of revenue, leading to a higher proportion of revenue retained as gross profit.
- Compared to the prior quarter, gross margin improved, with revenue growth outpacing cost of revenue growth. Versus the same quarter a year earlier, gross margin also strengthened, supported by a similar dynamic.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.7%
Gross profit
$1.4B
Revenue
$4.9B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+1.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 28, 2023 | $5.2B | $1.3B | $3.9B | 24.7% |
| Apr 29, 2023 | $4.5B | $1.2B | $3.3B | 26.7% |
| Jul 29, 2023 | $4.9B | $1.4B | $3.6B | 27.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
+0.9 pts
Year-over-year change
Jul 30, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The rise in gross margin was driven by revenue growing faster than cost of revenue, leading to a higher proportion of revenue retained as gross profit.
Compared to the prior quarter, gross margin improved, with revenue growth outpacing cost of revenue growth. Versus the same quarter a year earlier, gross margin also strengthened, supported by a similar dynamic.
Monitor whether cost of revenue growth continues to lag revenue growth, as this dynamic has supported margin expansion.