Ross Stores, Inc. stock research
FY2024 Q2
Ross Stores (ROST) Gross Margin — Quarter Ended Aug 3, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, indicating that gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Aug 3, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved slightly versus both periods, indicating that gross profit grew faster than cost of revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew at a faster pace than cost of revenue, leading to a higher gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter one year earlier, all metrics were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.3%
Gross profit
$1.5B
Revenue
$5.3B
Cost of revenue
$3.8B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Oct 28, 2023 | $4.9B | $1.4B | $3.6B | 27.6% |
| Feb 3, 2024 | $6.0B | $1.6B | $4.4B | 27.3% |
| May 4, 2024 | $4.9B | $1.4B | $3.5B | 28.1% |
| Aug 3, 2024 | $5.3B | $1.5B | $3.8B | 28.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
+0.1 pts
Year-over-year change
Jul 29, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew at a faster pace than cost of revenue, leading to a higher gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter one year earlier, all metrics were higher, and gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin direction.