Ross Stores, Inc. stock research
FY2024 Q3
Ross Stores (ROST) Gross Margin — Quarter Ended Nov 2, 2024
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit and cost of revenue moved in line with revenue, resulting in a gross margin that was stable versus the prior quarter and higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2024 Q3
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit and cost of revenue moved in line with revenue, resulting in a gross margin that was stable versus the prior quarter and higher than the year-ago quarter.
- Gross margin was unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue remained consistent. The improvement from the year-ago quarter was driven by a proportionally larger increase in revenue relative to cost of revenue.
- Compared to the immediately preceding quarter, revenue was lower while gross margin was stable. Compared to the same quarter one year earlier, revenue was higher and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.3%
Gross profit
$1.4B
Revenue
$5.1B
Cost of revenue
$3.6B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Nov 2, 2024 | $5.1B | $1.4B | $3.6B | 28.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2024
+0.1 pts
Year-over-year change
Oct 28, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was unchanged from the prior quarter, indicating that the relationship between revenue and cost of revenue remained consistent. The improvement from the year-ago quarter was driven by a proportionally larger increase in revenue relative to cost of revenue.
Compared to the immediately preceding quarter, revenue was lower while gross margin was stable. Compared to the same quarter one year earlier, revenue was higher and gross margin improved.
Monitor whether the stable gross margin can be maintained if revenue continues to decline from the prior quarter level.