ROSS STORES, INC.
For the period ended Aug 2, 2025. Filed Sep 10, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 2, 2025 · Filed Sep 10, 2025
ROST$231.09-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-03; filed 2025-06-11.
0000745732-25-000031
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-02; filed 2025-09-10.
0000745732-25-000052
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 78 previous paragraphs and 87 current paragraphs.
38 unchanged; 33 reworded; 15 added; 7 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Macroeconomic Conditions
Current report
Store Openings
Current report
We opened 31 new stores in the second quarter of fiscal 2025, which included expansion in new and existing markets. New market entries included several stores in the New York Metro area, as well as our three inaugural stores in Puerto Rico. We opened a total of 50 new stores in the first six months of fiscal 2025 and remain on track to open a total of approximately 90 new stores this year, comprised of about 80 Ross and 10 dd’s DISCOUNTS locations.
Current report
Sales Metrics
Current report
Comparable store sales (“comp store sales”) is a metric used by management and across the retail industry to evaluate the performance of existing stores by measuring the change in net sales for a particular period over the comparable prior period of equivalent length. We define comp store sales to be sales from stores that have been open for 14 complete months.
Current report
Sales excluded from comp store sales (“non-comp store sales”) consist primarily of sales from new stores that have been open for less than 14 complete months. Non-comp store sales also include sales from stores that are permanently closed (beginning in the month prior to closure) and temporarily closed (i.e., stores that do not have sales for at least two weeks within a fiscal month).
Current report
The calculation of comp store sales varies across the retail industry; therefore, our measure of comp store sales may differ from other retailers.
Current report
Metrics relating to customer purchasing behavior, such as “traffic” (defined as the number of transactions) and “basket” (defined as average transaction value), may provide additional insight into our comp store sales results (see Sales discussion).
Current report
Sales. Sales for the three month period ended August 2, 2025 increased $0.2 billion, or 5%, compared to the three month period ended August 3, 2024. This was primarily due to an increase in non-comp store sales of $0.1 billion and the 2% increase in comp store sales of $0.1 billion. The 2% increase in comp store sales reflects an approximate 1% increase in basket and 1% increase in traffic.
Current report
Sales for the six month period ended August 2, 2025 increased $0.4 billion, or 4%, compared to the six month period ended August 3, 2024. This was primarily due to an increase in non-comp store sales of $0.3 billion and the 1% increase in comp store sales, or $0.1 billion. The 1% increase in comp store sales is primarily due to an increase in basket.
Current report
Cost of goods sold as a percentage of sales for the three month period ended August 2, 2025 increased approximately 70 basis points compared to the three month period ended August 3, 2024, primarily due to a 55 basis point increase in distribution costs mainly due to the deleveraging effect from the opening of our eighth distribution center in Buckeye, Arizona in May 2025 and tariff-related processing costs. Merchandise margin decreased 30 basis points which included the impact of tariffs, and occupancy costs deleveraged 10 basis points. Partially offsetting these higher costs were lower domestic freight costs of 15 basis points and lower buying costs of 10 basis points from lower incentive compensation expense.
Current report
SG&A as a percentage of sales for the three and six month periods ended August 2, 2025 increased by 25 basis points and 15 basis points, respectively, compared to the three and six month periods ended August 3, 2024, primarily due to costs associated with our Chief Executive Officer transition.
Current report
Operating income as a percentage of sales for the second quarter of fiscal 2025 included an approximate 90 basis point negative impact from tariff-related costs. Moving into the second half of fiscal 2025, we expect tariff-related costs will continue to have a negative impact to operating income as a percentage of sales. We also expect continued cost of goods sold deleverage from the opening of our eighth distribution center in Buckeye, Arizona in May 2025.
Current report
In July 2025, the OBBBA was signed into law. The OBBBA made several changes to business tax provisions including the reinstatement of 100% bonus depreciation and immediate expensing of domestic research and development expenditures. As of August 2, 2025, the OBBBA resulted in an increase to our deferred tax liability balance of approximately $30 million primarily due to the reinstatement of 100% bonus depreciation.
Current report
Earnings for both the three and six month periods ended August 2, 2025 included approximately an $0.11 per share negative impact from tariff-related costs.
Removed paragraphs (7)
Previous report
Heightened macroeconomic pressures and geopolitical uncertainties, most notably prolonged inflation and evolving trade policies, continue to impact both consumer confidence and discretionary spending. Trade policy remains unpredictable, and although we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. If elevated tariff levels persist, it is possible we will see pressure on our level of profitability. We expect modest but broad-based inflationary pressures across the retail industry. However, we remain focused on maintaining a pricing umbrella below traditional retailers in order to continue delivering high quality, branded merchandise at great values to our customers.
Previous report
We opened 19 new stores in the first quarter of fiscal 2025 and expect to open a total of approximately 90 new stores this year. We expect to open 31 stores in the three month period ending August 2, 2025, including 28 Ross and three dd’s DISCOUNTS locations.
Previous report
Sales. Sales for the three month period ended May 3, 2025 increased $126.9 million, or 2.6%, compared to the three month period ended May 4, 2024, primarily due to the opening of 78 net new stores between May 4, 2024 and May 3, 2025.
Previous report
Moving into the second quarter of fiscal 2025, we expect merchandise margin to decrease as a percentage of sales due to the impact from announced tariffs and distribution costs to increase as a percentage of sales primarily due to the opening of our eighth distribution center in Buckeye, Arizona in May 2025. We expect these costs to be partially offset by lower incentive compensation expense.
Previous report
SG&A as a percentage of sales for the three month period ended May 3, 2025 was relatively flat compared to the three month period ended May 4, 2024, as the benefit from lower incentive compensation expense was offset by sales deleverage.
Previous report
Moving into the second quarter of fiscal 2025, we expect lower incentive compensation expense as a percentage of sales compared to the prior year.
Previous report
Moving into the second quarter of fiscal 2025, we anticipate operating income to decrease as a percentage of sales compared to the prior year as a result of lower merchandise margin primarily due to the impact from announced tariffs and higher distribution costs primarily from the opening of our eighth distribution center in Buckeye, Arizona in May 2025, partially offset by lower incentive compensation expense.
Reworded paragraphs (33)
Previous wording
Ross Stores, Inc. operates two brands of off-price retail apparel and home fashion stores—Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS®. Ross is the largest off-price apparel and home fashion chain in the United States, with 1,847 locations in 44 states, the District of Columbia, and Guam, as of May 3, 2025. Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. We also operate 358 dd’s DISCOUNTS stores in 22 states as of May 3, 2025 that feature a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.
Current wording
Ross Stores, Inc. operates two brands of off-price retail apparel and home fashion stores—Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS®. Ross is the largest off-price apparel and home fashion chain in the United States, with 1,873 locations in 44 states, the District of Columbia, Guam, and Puerto Rico as of August 2, 2025. Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. We also operate 360 dd’s DISCOUNTS stores in 22 states as of August 2, 2025 that feature a more moderately-priced assortment of first-quality, in-season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day.
Previous wording
Through these ongoing pressures and uncertainty, we continue to remain focused on offering our customers a wide assortment of quality branded bargains. We will continue to make necessary adjustments with our flexible off-price business model to navigate through this uncertain environment and believe we are well-positioned to gain market share while minimizing the impact from tariffs. Despite prolonged inflation, deteriorating consumer sentiment, and fluctuating tariff levels, we believe that our merchandising and operational strategies enable us to deliver the values our customers have come to expect from us.
Current wording
The macroeconomic environment continues to be uncertain. Tariffs remain at elevated levels, and we continue to expect broad-based inflationary pressures across the retail industry. Through these ongoing pressures and uncertainty, we continue to remain focused on offering our customers a wide assortment of high-quality, branded merchandise at outstanding values. We expect to continue to make necessary adjustments with our flexible off-price business model to navigate through this uncertain environment and believe we are well-positioned to capture market share while mitigating the impact from these macroeconomic challenges. Despite the ongoing uncertainty in the external environment, we believe that our merchandising and operational strategies enable us to deliver the values our customers have come to expect from us.
Previous wording
Stores. Our long-term strategy is to open additional stores based on market penetration, local demographic characteristics, competition, expected store profitability, and the ability to leverage overhead expenses. We continually evaluate opportunistic real estate acquisitions and opportunities for potential new store locations. We also evaluate our current store locations and determine store closures based on similar criteria. We continue to believe that consumers’ focus on value and convenience provide opportunities for us to gain market share.
Current wording
Our long-term strategy is to open additional stores based on market penetration, local demographic characteristics, competition, expected store profitability, and the ability to leverage overhead expenses. We continually evaluate opportunistic real estate acquisitions and opportunities for potential new store locations. We also evaluate our current store locations and determine store closures based on similar criteria. We continue to believe that customers’ focus on value and convenience provide opportunities for us to gain market share.
Previous wording
The following table summarizes our financial results for the three month periods ended May 3, 2025 and May 4, 2024:
Current wording
The following table summarizes our financial results for the three and six month periods ended August 2, 2025 and August 3, 2024:
Previous wording
Our sales mix for the three month periods ended May 3, 2025 and May 4, 2024 is shown below:
Current wording
Our sales mix for the three and six month periods ended August 2, 2025 and August 3, 2024 is shown below:
Previous wording
Cost of goods sold. Cost of goods sold for the three month period ended May 3, 2025 increased $90.7 million compared to the three month period ended May 4, 2024, primarily due to higher sales from the opening of 78 net new stores between May 4, 2024 and May 3, 2025.
Current wording
Cost of goods sold. Cost of goods sold for the three and six month periods ended August 2, 2025 increased $210 million and $301 million, respectively, compared to the three and six month periods ended August 3, 2024 primarily due to the increases in sales.
Previous wording
Cost of goods sold as a percentage of sales for the three month period ended May 3, 2025 was relatively flat compared to the three month period ended May 4, 2024. Compared to the prior year period, there was a 45 basis point decrease in merchandise margin mainly due to higher ocean freight costs and the initial impact of tariffs. Occupancy and distribution costs rose by 20 basis points and five basis points, respectively. Buying costs declined by 50 basis points from lower incentive compensation expense, and domestic freight costs levered by 20 basis points.
Current wording
Cost of goods sold as a percentage of sales for the six month period ended August 2, 2025 increased approximately 35 basis points compared to the six month period ended August 3, 2024, primarily due to a 35 basis point decrease in merchandise margin which included the impact of tariffs. Distribution costs increased by 30 basis points mainly due to the deleveraging effect from the opening of our eighth distribution center in Buckeye, Arizona in May 2025 and tariff-related processing costs. Occupancy costs deleveraged by 10 basis points. Partially offsetting these higher costs were lower buying costs of 25 basis points from lower incentive compensation expense and lower domestic freight costs of 15 basis points.
Previous wording
Selling, general and administrative expenses. For the three month period ended May 3, 2025, selling, general and administrative expenses (“SG&A”) increased $20.9 million compared to the three month period ended May 4, 2024, primarily due to the opening of 78 net new stores between May 4, 2024 and May 3, 2025, partially offset by lower incentive compensation expense.
Current wording
Selling, general and administrative expenses. For the three and six month periods ended August 2, 2025, selling, general and administrative expenses (“SG&A”) increased $52 million and $73 million, respectively, compared to the three and six month periods ended August 3, 2024, primarily due to higher store related costs mainly from the increase in sales.
Previous wording
Operating income. Operating income as a percentage of sales for the three month period ended May 3, 2025 was flat compared to the three month period ended May 4, 2024, as both cost of goods sold and SG&A were relatively flat as a percentage of sales period over period.
Current wording
Operating income. Operating income as a percentage of sales for the three and six month periods ended August 2, 2025 decreased by 95 basis points and 50 basis points, respectively, compared to the three and six month periods ended August 3, 2024, as both cost of goods sold and SG&A increased as a percentage of sales period over period.
Previous wording
Interest income, net. For the three month period ended May 3, 2025, interest income, net decreased $11.5 million compared to the three month period ended May 4, 2024, primarily due to decreased interest income both from lower average interest rates and from lower average cash balances, which decreased largely due to our repayment at maturity of $700 million of Senior Notes in April 2025 and $250 million of Senior Notes in September 2024. The decrease in interest income was partially offset by lower interest expense due to the repayment of those Senior Notes.
Current wording
Interest income, net. For the three and six month periods ended August 2, 2025, interest income, net decreased $11 million and $23 million, respectively, compared to the three and six month periods ended August 3, 2024, primarily due to decreased interest income both from lower average interest rates and from lower average cash balances, which decreased largely due to our repayment at maturity of $700 million of Senior Notes in April 2025 and $250 million of Senior Notes in September 2024. The decrease in interest income was partially offset by lower interest expense due to the repayment of those Senior Notes.
Previous wording
The table below shows the components of interest income, net for the three month periods ended May 3, 2025 and May 4, 2024:
Current wording
The table below shows the components of interest income, net for the three and six month periods ended August 2, 2025 and August 3, 2024:
Previous wording
Taxes on earnings. Our effective tax rate is impacted by changes in tax laws and accounting guidance, location of new stores, level of earnings, tax effects associated with stock-based compensation, and the resolution of tax positions with various tax authorities. For the three month period ended May 3, 2025, our effective tax rate was approximately 25% compared to approximately 23% for the three month period ended May 4, 2024. The increase in the effective tax rate of 2% for the three month period ended May 3, 2025 compared to the three month period ended May 4, 2024 was primarily due to the tax effects associated with stock-based compensation.
Current wording
Taxes on earnings. Our effective tax rate is impacted by changes in tax laws and accounting guidance, location of new stores, level of earnings, tax effects associated with stock-based compensation, and the resolution of tax positions with various tax authorities. Our effective tax rates for the three month periods ended August 2, 2025 and August 3, 2024 were approximately 24% and 25%, respectively. The one percent decrease in the effective tax rate for the three month period ended August 2, 2025 compared to the three month period ended August 3, 2024 was primarily due to the resolution of tax positions with various tax authorities. Our effective tax rates for the six month periods ended August 2, 2025 and August 3, 2024 were approximately 25% and 24%, respectively. The one percent increase in the effective tax rate for the six month period ended August 2, 2025 compared to the six month period ended August 3, 2024 was primarily due to the tax effects associated with stock-based compensation.
Previous wording
Earnings per share. Diluted earnings per share for the three month period ended May 3, 2025 was $1.47 compared to $1.46 for the three month period ended May 4, 2024. The $0.01 increase in the diluted earnings per share for the three month period ended May 3, 2025 was primarily attributable to a 2% reduction in weighted-average diluted shares outstanding largely due to stock repurchases under our stock repurchase program, partially offset by approximately a 1% decrease in net earnings.
Current wording
Earnings per share. Diluted earnings per share for the three month period ended August 2, 2025 was $1.56 compared to $1.59 for the three month period ended August 3, 2024. The $0.03 decrease in the diluted earnings per share for the three month period ended August 2, 2025 was primarily attributable to an approximately 4% decrease in net earnings, partially offset by a 2% reduction in weighted-average diluted shares outstanding largely due to stock repurchases under our stock repurchase program.
Previous wording
The following table summarizes the stores opened and closed during the three month periods ended May 3, 2025 and May 4, 2024:
Current wording
Stores. The following table summarizes the stores opened and closed during the three and six month periods ended August 2, 2025 and August 3, 2024:
Previous wording
The primary sources of funds for our business activities are cash flows from operations and short-term trade credit. Our primary ongoing cash requirements are for merchandise inventory purchases, payroll, operating and variable lease costs, taxes, capital expenditures related to new and existing stores, and investments in distribution centers, information systems, and buying and corporate offices. We also use cash to repurchase stock under active stock repurchase programs, repay debt as it becomes due, and pay dividends. We repaid at maturity $700 million of our Senior Notes in April 2025. As of May 3, 2025, we had $500 million principal amount of 0.875% Senior Notes that will reach maturity in 2026.
Current wording
The primary sources of funds for our business activities are cash flows from operations and short-term trade credit. Our primary ongoing cash requirements are for merchandise inventory purchases, payroll, operating and variable lease costs, taxes, capital expenditures related to new and existing stores, and investments in distribution centers, information systems, and buying and corporate offices. We also use cash to repurchase stock under active stock repurchase programs, repay debt as it becomes due, and pay dividends. We repaid at maturity $700 million of our Senior Notes in April 2025. The $500 million principal amount of 0.875% Senior Notes is due in April 2026.
Previous wording
Net cash provided by operating activities was $410 million for the three month period ended May 3, 2025. This was primarily driven by net earnings excluding non-cash expenses for depreciation, amortization, and stock-based compensation, partially offset by the payment of fiscal 2024 incentive bonuses. Net cash provided by operating activities was $369 million for the three month period ended May 4, 2024. This was primarily driven by net earnings excluding non-cash expenses for depreciation, amortization, and stock-based compensation, partially offset by the payment of fiscal 2023 incentive bonuses.
Current wording
Net cash provided by operating activities was $1.1 billion for the six month period ended August 2, 2025. This was primarily driven by net earnings excluding non-cash expenses for depreciation, amortization, and stock-based compensation, partially offset by the payment of fiscal 2024 incentive bonuses. Net cash provided by operating activities was $961 million for the six month period ended August 3, 2024. This was primarily driven by net earnings excluding non-cash expenses for depreciation, amortization, and stock-based compensation, partially offset by the payment of fiscal 2023 incentive bonuses.
Previous wording
The increase in cash flow provided by operating activities for the three month period ended May 3, 2025 compared to the same period in the prior fiscal year was primarily driven by lower incentive compensation payments.
Current wording
The increase in cash flow provided by operating activities for the six month period ended August 2, 2025 compared to the same period in the prior fiscal year was primarily driven by lower income taxes paid and lower incentive compensation payments.
Previous wording
Accounts payable leverage (defined as accounts payable divided by merchandise inventory) was 81% and 86% as of May 3, 2025 and May 4, 2024, respectively. The decrease in accounts payable leverage was primarily due to the timing of inventory receipts and related payments versus last year.
Current wording
Accounts payable leverage (defined as accounts payable divided by merchandise inventory) was 85% and 89% as of August 2, 2025 and August 3, 2024, respectively. The decrease in accounts payable leverage was primarily due to the timing of inventory receipts and related payments versus last year.
Previous wording
Changes in packaway inventory levels affect our operating cash flow. As of May 3, 2025 and February 1, 2025, packaway inventory was 41% of total inventory.
Current wording
Changes in packaway inventory levels affect our operating cash flow. As of August 2, 2025 and February 1, 2025, packaway inventory was 38% and 41% of total inventory.
Previous wording
Net cash used in investing activities was $207 million and $136 million for the three month periods ended May 3, 2025 and May 4, 2024, respectively, and was related to our capital expenditures. Our capital expenditures include costs to open new stores and improve existing stores, build, expand, and improve distribution centers, and for various other expenditures related to our information technology systems and buying and corporate offices.
Current wording
Net cash used in investing activities was $409 million and $334 million for the six month periods ended August 2, 2025 and August 3, 2024, respectively, and was related to our capital expenditures. Our capital expenditures include costs to open new stores and improve existing stores, build, expand, and improve distribution centers, and for various other expenditures related to our information technology systems and buying and corporate offices.
Previous wording
The change in cash used in investing activities for the three month period ended May 3, 2025, compared to the same period in the prior fiscal year, was primarily due to higher capital expenditures in the current year related to the construction of our next distribution center in Randleman, North Carolina and the opening of new stores.
Current wording
The change in cash used in investing activities for the six month period ended August 2, 2025, compared to the same period in the prior fiscal year, was primarily due to higher capital expenditures in the current year related to the construction of our next distribution center in Randleman, North Carolina and the opening of new stores.
Previous wording
Capital expenditures for fiscal 2025 are currently projected to be approximately $855 million. Our planned capital expenditures for fiscal 2025 are for costs to open new stores and improve existing stores, investments in our supply chain to support long-term growth, including construction of our next distribution centers, investments in our information technology systems, and for various other expenditures related to our stores, distribution centers, and buying and corporate offices. We expect to fund capital expenditures with available cash.
Current wording
Capital expenditures for fiscal 2025 are currently projected to be approximately $800 million. Our planned capital expenditures for fiscal 2025 are for costs to open new stores and improve existing stores, investments in our supply chain to support long-term growth, including construction of our next distribution center, investments in our information technology systems, and for various other expenditures related to our stores, distribution centers, and buying and corporate offices. We expect to fund capital expenditures with available cash.
Previous wording
Net cash used in financing activities was $1.1 billion for the three month period ended May 3, 2025 primarily resulting from the repayment at maturity of$700 million principal amount of 4.600% Senior Notes in April 2025, stock repurchases under our stock repurchase program, and dividend payments. Net cash used in financing activities was $450 million for the three month period ended May 4, 2024 primarily resulting from stock repurchases under our stock repurchase program and dividend payments.
Current wording
Net cash used in financing activities was $1.6 billion for the six month period ended August 2, 2025 primarily resulting from the repayment at maturity of the$700 million principal amount of 4.600% Senior Notes in April 2025, stock repurchases under our stock repurchase program, and dividend payments. Net cash used in financing activities was $830 million for the six month period ended August 3, 2024 primarily resulting from stock repurchases under our stock repurchase program and dividend payments.
Previous wording
Revolving credit facilities. We have a $1.3 billion senior unsecured revolving credit facility. As of May 3, 2025, we had no borrowings or standby letters of credit outstanding under the Credit Facility, our Credit Facility remained in place and available, and we were in compliance with the financial covenant. Refer to Note E: Debt in the Notes to Condensed Consolidated Financial Statementsfor additional information.
Current wording
Revolving credit facilities. In June 2025, we entered into a new, $1.3 billion 2025 Credit Facility, which replaced our previous $1.3 billion unsecured credit facility. As of August 2, 2025, we had no borrowings or standby letters of credit outstanding under the 2025 Credit Facility, our 2025 Credit Facility remained in place and available, and we were in compliance with the financial covenant. Refer to Note E: Debt in the Notes to Condensed Consolidated Financial Statementsfor additional information.
Previous wording
Senior notes. As of May 3, 2025, we had approximately $1.5 billion of outstanding unsecured Senior Notes, of which $499 million was classified within Current Liabilities on our Condensed Consolidated Balance Sheet for the period ended May 3, 2025. Refer to Note E: Debt in the Notes to Condensed Consolidated Financial Statements for additional information.
Current wording
Senior notes. As of August 2, 2025, we had approximately $1.5 billion of outstanding unsecured Senior Notes, of which $499 million was classified in Current Liabilities on our Condensed Consolidated Balance Sheet for the period ended August 2, 2025. Refer to Note E: Debt in the Notes to Condensed Consolidated Financial Statements for additional information.
Previous wording
Other financing activities. In March 2024, our Board of Directors approved a two-year program to repurchase up to $2.1 billion of our common stock through fiscal 2025. During the three month period ended May 3, 2025, we repurchased 2.0 million shares of common stock for $262.5 million (excluding excise tax) under this program. As of May 3, 2025, there was $787.5 million available for repurchase under this program.
Current wording
Other financing activities. In March 2024, our Board of Directors approved a two-year program to repurchase up to $2.1 billion of our common stock through fiscal 2025. During the six month period ended August 2, 2025, we repurchased 3.9 million shares of common stock for $525 million (excluding excise tax) under this program. As of August 2, 2025, there was $525 million available for repurchase under this program.
Previous wording
During the three month periods ended May 3, 2025 and May 4, 2024, we also acquired 0.5 million shares of treasury stock to cover employee tax withholding obligations under our employee equity compensation programs, for aggregate purchase prices of approximately $60.1 million and $70.5 million, respectively.
Current wording
During the six month periods ended August 2, 2025 and August 3, 2024, we also acquired 0.5 million shares of treasury stock in each period to cover employee tax withholding obligations under our employee equity compensation programs, for aggregate purchase prices of approximately $64 million and $72 million, respectively.
Previous wording
On May 21, 2025, our Board of Directors declared a quarterly cash dividend of $0.4050 per common share, payable on June 30, 2025. The Board of Directors declared a quarterly cash dividend of $0.4050 per common share in March 2025, and $0.3675 per common share in March, May, August, and November 2024.
Current wording
On August 20, 2025, our Board of Directors declared a quarterly cash dividend of $0.4050 per common share, payable on September 30, 2025. The Board of Directors declared a quarterly cash dividend of $0.4050 per common share in March and May 2025, and $0.3675 per common share in March, May, August, and November 2024.
Previous wording
For the three month periods ended May 3, 2025 and May 4, 2024, we paid cash dividends of $133.3 million and $123.3 million, respectively.
Current wording
For the six month periods ended August 2, 2025 and August 3, 2024, we paid cash dividends of $265.6 million and $245.8 million, respectively.
Previous wording
We ended the first quarter of fiscal 2025 with $3.8 billion of unrestricted cash balances, which were held primarily in overnight money market funds invested in U.S. treasury and government instruments across a highly diversified set of banks and other financial institutions. We also have $1.3 billion available under our Credit Facility. We estimate that existing cash and cash equivalent balances, cash flows from operations, our bank credit facility, and trade credit are adequate to meet our operating cash needs and to fund our common stock repurchases, planned capital investments, debt repayments, quarterly dividend payments, and interest payments, for at least the next 12 months.
Current wording
We ended the second quarter of fiscal 2025 with $3.8 billion of unrestricted cash balances, which were held primarily in overnight money market funds invested in U.S. treasury and government instruments across a highly diversified set of banks and other financial institutions. We also have $1.3 billion available under our new 2025 Credit Facility. We estimate that existing cash and cash equivalent balances, cash flows from operations, our bank credit facility, and trade credit are adequate to meet our operating cash needs and to fund our common stock repurchases, planned capital investments, quarterly dividend payments, debt repayments, and interest payments, for at least the next 12 months.
Previous wording
Standby letters of credit and collateral trust. We use standby letters of credit outside of our revolving credit facility and a funded trust to collateralize some of our insurance obligations. As of May 3, 2025, February 1, 2025, and May 4, 2024, we had $1.0 million, $1.8 million, and $2.2 million, respectively, in standby letters of credit outstanding. As of May 3, 2025, February 1, 2025, and May 4, 2024, we had $64.6 million, $63.9 million, and $61.6 million, respectively, held in a collateral trust. The standby letters of credit are collateralized by restricted cash and the collateral trust consists of restricted cash and cash equivalents.
Current wording
Standby letters of credit and collateral trust. We use standby letters of credit outside of our revolving credit facility and a funded trust to collateralize some of our insurance obligations. As of August 2, 2025, February 1, 2025, and August 3, 2024, we had $1.0 million, $1.8 million, and $2.2 million, respectively, in standby letters of credit outstanding. As of August 2, 2025, February 1, 2025, and August 3, 2024, we had $65.3 million, $63.9 million, and $62.4 million, respectively, held in a collateral trust. The standby letters of credit are collateralized by restricted cash and the collateral trust consists of restricted cash and cash equivalents.
Previous wording
During the first quarter of fiscal 2025, there were no significant changes to the critical accounting estimates discussed in our Annual Report on Form 10-K for the year ended February 1, 2025.
Current wording
During the second quarter of fiscal 2025, there were no significant changes to the critical accounting estimates discussed in our Annual Report on Form 10-K for the year ended February 1, 2025.
Previous wording
•Uncertainties arising from the macroeconomic environment, including inflation and the price of necessities, high interest rates, housing costs, energy and fuel costs, financial and credit market conditions, recession concerns, geopolitical conditions, and public health and public safety issues may affect consumer confidence, consumer disposable income, and shopping behavior, as well as our costs.
Current wording
•Uncertainties arising from the macroeconomic environment, including inflation and the price of necessities, high interest rates, housing costs, energy and fuel costs, financial and credit market conditions, recession concerns, geopolitical conditions, government policies and enforcement practices with respect to immigration, and public health and public safety issues may affect consumer confidence, consumer disposable income, and shopping behavior, as well as our costs.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Diluted earnings per share for the six month period ended August 2, 2025 was $3.03 compared to $3.05 for the six month period ended August 3, 2024. The $0.02 decrease in the diluted earnings per share for the six month period ended August 2, 2025 was primarily attributable to an approximately 3% decrease in net earnings, partially offset by a 2% reduction in weighted-average diluted shares outstanding largely due to stock repurchases under our stock repurchase program.