Ross Stores 1Q16 Earnings Call Notes

posted in: Notes | 0

Ross Stores’ (ROST) CEO Barbara Rentler on Q1 2016 Results

There’s a lot of supply of pack away merchandise in the market

“In terms of supply, supply is very broad-based. There’s a lot of supply in the market.”

The supply should keep coming. Department store business is way off

“Actually our history would show that the supply will keep the coming. As the department store sector even though they pulled back, their business is way off and I don’t think it’s very difficult I think for vendor to get ahead of that, so history would show that, they would be plentiful supply as we go forward.”

Had execution issue in ladies

“In terms of the execution issues in Ladies, really it’s a mix issue. We just — we bought wrong product in fabrications, in colors, we just didn’t transition into spring product appropriately.”

Michael Hartshorn

California underperformed

“Sure on the regions Paul, the Mid-West and the Mid-Atlantic as we said in the comments were the strongest regions. The Mid-West has been very strong over the last several years, while the Mid-Atlantic benefited from a favorable weather comparison versus last year. In terms of other states, you mentioned California our largest region performed slightly below the chain average. Texas was above the chain average on top of a strong performance last year when it was also above the chain average. And then Florida, trailed the chain average we believe some of the merchandising issues that Barbara mentioned in her comments had a bigger impact to Florida as we transitioned spring product earlier there.”

No signs that supply is tightening up

“No I can’t really think of a period in the history that it would be analogous. So what I would say is many of the things that you just said Michael are things that frankly people said at the beginning of every year in terms of here’s why supply is going to tighten up. And certainly we haven’t seen any sign of that and but so far this year and so we’re not expecting to see a major reduction in supply opportunities either for the remainder of this year may be it’s too early to tell for 2017 but at least no signs of that at this poin”