Ross Stores Inc (ROST)

Gross profit margin

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Gross profit	US$ in thousands	5,868,710	2,471,780	5,575,340	4,749,600	1,987,490
Revenue	US$ in thousands	21,129,200	20,541,100	20,376,900	18,695,800	18,693,000
Gross profit margin		27.78%	12.03%	27.36%	25.40%	10.63%

January 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $5,868,710K ÷ $21,129,200K
= 27.78%

Ross Stores Inc's gross profit margin has shown varying trends over the past few years. In January 2023, the gross profit margin was relatively low at 10.63%, indicating that the company retained only a small portion of its revenue after accounting for the cost of goods sold. However, there was a significant improvement by January 2024, with the gross profit margin increasing to 27.36%. This indicates that Ross Stores Inc was able to generate more profits relative to its revenue during that period.

There was a slight decrease in the gross profit margin by February 2024 to 12.03%, which could suggest a temporary dip in profitability or possibly changes in the cost structure. However, the company managed to bounce back by January 2025, achieving a gross profit margin of 27.78%, surpassing the previous peak.

Overall, the upward trend in the gross profit margin from 10.63% in January 2023 to 27.78% in January 2025 reflects positively on Ross Stores Inc's ability to effectively manage its costs and generate profits from its operations.