读者寄语: 不管是您想投资美股, 还是想投资港股， 保持好自己的心态是最重要的。特别在美股、港股市场拥有一套成熟的金融市场，市场鼓励长期持有，而不是短期的投机炒作。选择一个好的公司, 耐心的等待, 做时间的朋友。如果您想咨询美股开户、港股开户相关的问题, 或者您对美股、港股感兴趣可以添加微信交流: andyhu006
Ross Stores, Inc. (NASDAQ:ROST) Q2 2019 Results Earnings Conference Call August 22, 2019 4:15 PM ET
Barbara Rentler - Chief Executive Officer
Travis Marquette - Group Senior Vice President and Chief Financial Officer
Michael Hartshorn - Group President and Chief Operating Officer
- Barbara Rentler - 首席执行官
- Travis Marquette - 集团高级副总裁兼首席财务官
- Michael Hartshorn - 集团总裁兼首席运营官
Matthew Boss - J.P. Morgan
Lorraine Hutchinson - Bank of America Merrill Lynch
Mark Altschwager - Robert W. Baird
Kimberly Greenberger - Morgan Stanley
Omar Saad - Evercore ISI
Michael Binetti - Credit Suisse
Alexandra Walvis - Goldman Sachs
Daniel Hofkin - William Blair
John Morris - D.A. Davidson
Paul Trussell - Deutsche Bank
Ike Boruchow - Wells Fargo
Jay Sole - UBS
John Kernan - Cowen and Company
Janine Stichter - Jefferies & Co.
Laura Champine - Loop Capital
Dana Telsey - Telsey Advisory Group
Roxanne Meyer - MKM Partners LLC
Paul Lejuez - Citigroup
- Matthew Boss - J.P. Morgan
- Lorraine Hutchinson - 美国银行美林证券
- Mark Altschwager - Robert W. Baird
- 金伯利格林伯格 - 摩根士丹利
- Omar Saad - Evercore ISI
- Michael Binetti - 瑞士信贷
- 亚历山德拉沃尔维斯 - 高盛
- 丹尼尔霍夫金 - 威廉布莱尔
- 约翰莫里斯 - D.A.戴维森
- Paul Trussell - 德意志银行
- Ike Boruchow - 富国银行
- 杰伊索尔 - 瑞银
- 约翰克南 - 考恩和公司
- Janine Stichter - Jefferies＆Co。
- Laura Champine - Loop Capital
- 达纳特尔西 - 特尔西咨询集团
- Roxanne Meyer - MKM Partners LLC
- Paul Lejuez - 花旗集团
Good afternoon and welcome to the Ross Stores Second Quarter 2019 Earnings Release Conference Call. The call will begin with prepared comments by management, followed by a question-and-answer session. [Operator Instructions].
Before we get started, on behalf of Ross Stores, I would like to note that the comments made on this call will contain forward-looking statements regarding expectations about future growth and financial results, including sales and earnings forecasts, new store openings and other matters that are based on the company's current forecast of aspects of its future business.
These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations.
Risk factors are included in today's press release and the Company's fiscal 2018 Form 10-K and fiscal 2019 Form 10-Q and 8-Ks on file with the SEC.
Now, I'd like to turn the call over to Barbara Rentler, Chief Executive Officer.
Good afternoon. Joining me on our call today are Michael Hartshorn, Group President and Chief Operating Officer, Travis Marquette, Group Senior Vice President and Chief Financial Officer and Connie Kao, Vice President, Investor Relations.
We'll begin our call today with a review of our second quarter performance, followed by our outlook for the second half and fiscal year. Afterwards, we'll be happy to respond to any questions you may have.
As noted in today's press release, we delivered respectable gains in both sales and earnings for the second quarter. Earnings per share for the period were $1.14, up from $1.04 last year. Net earnings were $413 million, up from $389 million in the prior year.
Total sales for the second quarter increased 6% to $4 billion. Comparable store sales rose 3% on top of last year's strongest quarterly comparison of 5%.
For the second quarter, the best performing merchandise department at Ross was men, while the Midwest and Southeast were the top performing markets. While the ladies business continued to trail the chain, trends in this important area showed some improvement during the quarter. We continue to believe that the actions we are taking here will lead to additional improvement as we move through the balance of the year.
Operating margin of 13.7% was better than expected, mainly due to favorable timing of expenses that are expected to reverse in the second half.
For the first six months of fiscal 2019, earnings per share were $2.29, up from $2.15 last year. Net earnings were $834 million, up from $808 million in the first half of 2018.
Sales year-to-date rose 6% to $7.8 billion with comparable store sales up 2% versus a 4% gain for the first half of last year.
As we ended the second quarter, total consolidated inventories were up 8% over the prior year. Packaway was 43% of total inventories compared to last year's 44%. Average in-store inventories at the end of the period were up 4% as we flowed receipts a little earlier to support the back-to-school selling period.
dd's DISCOUNTS had another quarter of strong growth in both sales and operating profit.
Turning to our store expansion program, we remained on schedule with the opening of 22 new Ross and 6 dd's DISCOUNTS locations in the second quarter. We continue to project adding a total of approximately 100 locations in 2019, comprised of 75 Ross and 25 dd's. As usual, these numbers do not reflect our plans to close or relocate about 10 older stores.
Now, Travis Marquette will provide further color on our second quarter results and details on our second half guidance.
下午好。今天与我联系的是集团总裁兼首席运营官Michael Hartshorn，集团高级副总裁兼首席财务官Travis Marquette和投资者关系副总裁Connie Kao。
Thank you, Barbara. As previously mentioned, our second quarter earnings results benefited from the favorable timing of expenses that are expected to reverse in the second half. This benefit was worth approximately $0.02 to earnings per share.
Now, turning to the details of our Q2 results. As noted in today's press release, we have updated our earnings guidance for the second half, given the recent announcement of 10% tariff on goods sourced from China, including apparel and footwear. Our projected impact is based on our present understanding of the timing of, and the merchandise categories included in, these additional tariffs.
Our sales forecast for the second half remains unchanged. We continue to forecast same store sales for the balance of the year to grow by 1% to 2%. If sales perform in line with this projection, earnings per share for the third quarter are forecasted to be in the range of $0.92 to $0.96 compared to $0.91 a year ago.
For the fourth quarter, earnings per shares are projected to be $1.20 to $1.25 versus $1.20 in the prior year, which included a one-time per share benefit of $0.07 from the favorable resolution of a tax matter.
Now, I will provide some operating statement assumptions for our third quarter EPS.
Projected sales – total Sales are projected to grow 5% to 6%. We expect to open 42 new stores during the period, including 30 Ross and 12 dd's locations.
Operating margin is projected to be in the range of 11.8% to 12.0% compared to last year's 12.4%. This forecast reflects our expectations for some pressure on merchandise gross margin from tariffs, along with deleveraging on occupancy and other expenses if comparable sales perform in line with our guidance.
We expect net interest income of about $3.3 million. Our tax rate is expected to be approximately 24% and weighted average diluted shares outstanding are projected to be about 360 million.
Based on our first half results and second half guidance, we now project earnings per share for the full year to be in the range of $4.41 to $4.50 compared to $4.26 in fiscal 2018, which included the previously mentioned one-time per share benefit of $0.07.
Now, I'll turn the call back to Barbara for closing comments.
预计销售额 - 预计总销售额将增长5％至6％。我们期望在此期间开设42家新店，包括30家Ross和12家dd店。
Thank you, Travis. To sum up, as I mentioned earlier, we delivered respectable sales and earnings growth for the second quarter on top of our strongest quarterly comparable sales comparison from last year.
While we've made progress in strengthening the ladies apparel business, we still have a way to go until we're satisfied with our assortments in this important area.
As we move into the fall season, we'll work on our merchandising initiatives in ladies and also throughout the entire store, so that we are delivering the right products and brands, priced as sharply as our customers have come to expect.
We believe the additional tariffs may result in increased uncertainty in the apparel and footwear market. Historically, disruptions like this have benefited off-price. As always, our focus will continue to be offering our customers the most compelling values possible throughout our stores.
At this point, we'd like to open up the call and respond to any questions you might have.
[Operator Instructions]. Your first question comes from the line of Matthew Boss from J.P. Morgan.
[操作员说明]。 你的第一个问题来自J.P.摩根的Matthew Boss。
Thanks. And congrats on a nice quarter. So, with same store sales comparisons easing in the back half of the year relative for the front half and given the sequential improvement that you spoke to, in the ladies business, anything you see constraining your ability to exceed the 1% to 2% comp guidance for the back half of the year? Or maybe where do you see top opportunities to potentially outperform?
谢谢。 并祝贺一个不错的季度。 因此，相同的商店销售比例在下半年相对于前半部分有所缓和，并且考虑到您所谈到的顺序改进，在女士业务中，任何您认为限制您的能力超过1％至2％的比较 今年下半年的指导？ 或者也许你在哪里可以看到有可能超越的最佳机会？
Matt, hi. It's Michael Hartshorn. The way we thought about the back half, first, we were up against strong multi-year comparisons in both Q3 and Q4. With ladies strengthening, it is a smaller part of the business in the back half. On top of that, we think there's going to be continued uncertainty. Given the department store performance in Q2, we expect it – or could be more promotional. And on top of that, we think the tariffs are going to cause a bit of uncertainty in the back half. So, our point of view is we always like to be conservative and hope to beat it.
马特，嗨。 这是Michael Hartshorn。 我们考虑后半部分的方式，首先，我们在第三季度和第四季度都面临着强劲的多年比较。 随着女士们的加强，这是后半部分业务的一小部分。 最重要的是，我们认为会有持续的不确定性。 考虑到第二季度百货商店的表现，我们期待它 - 或者可能更具促销性。 最重要的是，我们认为关税将在后半部分引起一些不确定性。 所以，我们的观点是我们总是喜欢保守，希望能够击败它。
Great. And then, maybe just to follow-up. And larger picture, Barbara, I guess how best to think about the near-term versus intermediate term, the potential impact of tariffs maybe to the customer in the off-price sector in your view?
大。 然后，也许只是为了跟进。 更大的图片，芭芭拉，我想如何最好地考虑近期和中期，您认为关税可能对价格外部的客户产生潜在影响？
Well, in the near term, I think what we have to do is recognize that we're not the leader in all of this. We're the follower. So, we're not going to be the leader in terms of raising prices. So, as the tariff comes on, it's early for us to know how retailers plan to manage through the costs and, ultimately, what the customer is going to see in terms of pricing in front of them. So, we're studying that business. So, we're going to have to wait and see how retailers react to the higher costs, their approach on pricing, and then really the customers' reaction to potential price inflation.
So, in the near-term, it's a wait and see. We have to kind of watch what they're doing and then see where that puts us because we're clearly not the lead on pricing.
In the intermediate, I think it will – it historically would have given us an opportunity for supply and some changing markets. But I think until we understand – the near term and intermediate being defined, I guess, part of 2020 – until we understand what the pricing is going to mean to the customer, I think there's going to be some challenges ahead particularly as department store business is difficult. And so, with that, we're going to wait and see and again. And again, as I said, we're going to hold on our pricing and see where we fit in the order because the most important thing, while all of this is going on, is that we offer our customers the best values possible. And so, there's going to be a lot of moving targets I think here, and so I think we need to study it.
在中间产品中，我认为它会 - 它在历史上会给我们提供供应机会和一些不断变化的市场。但我认为，直到我们理解 - 我认为，近期和中间的定义，我想，2020年的一部分 - 直到我们了解定价对客户意味着什么，我认为特别是作为百货商店业务将面临一些挑战很难。因此，我们将等待，再看一遍。而且，正如我所说，我们将坚持我们的定价，看看我们在订单中的位置，因为最重要的是，虽然所有这一切都在进行，但我们为客户提供了最好的价值。所以，我认为这里会有很多移动目标，所以我认为我们需要研究它。
That's great color. Best of luck.
Your next question comes from Lorraine Hutchinson from Bank of America.
Thank you. Good afternoon. Just to follow-up on the tariffs, can you talk about what proportion of your product is affected? And then, are there any opportunities for mitigation as you look into 2020?
谢谢。 下午好。 只是为了跟进关税，你能谈谈你的产品中有多大比例受到影响吗？ 然后，在您展望2020年时，是否有任何缓解机会？
Sure, Lorraine. We don't disclose the specific percentage for competitive reasons. That said, as with most retailers, a good portion of our apparel and footwear comes from China.
So, with that said, in terms of the mitigation, so as we mentioned in the commentary, we think it was a prudent approach to make our best estimate of the potential impact, separating out what goes into effect in September and December. And for us, our best estimate at this point is we added $0.03 – or took $0.03 from EPS in the back half, but certainly hope it plays out more favorably. But that's our best shot at this point in time.
We'll have to wait to see, as Barbara mentioned, how different retailers react to the higher costs, their approach on pricing, as well as how the consumer would react to increase in prices. That said, historically, disruptions like this have been beneficial for off-price.
当然，洛林。 出于竞争原因，我们不会披露具体百分比。 也就是说，与大多数零售商一样，我们的服装和鞋类很大一部分来自中国。
因此，就缓解而言，正如我们在评论中所提到的那样，我们认为这是一种审慎的方法，可以对潜在影响做出最佳估计，将9月和12月生效的内容分开。 而对于我们来说，我们目前的最佳估计是我们增加了0.03美元 - 或者在后半段从EPS中获得了0.03美元，但当然希望它更有利。 但那是我们此时的最好成绩。
Your next question comes from Mark Altschwager from Baird.
Great. Good afternoon. Thanks for taking my question. Was hoping you could give a bit more color on some of the gross margin drivers in Q2 just in terms of merch margin, freight distribution and then if you're able to quantify perhaps just the level of merch margin pressure you expect from tariffs over the back half. That would be helpful. Thank you.
大。 下午好。 谢谢你提出我的问题。 希望你能在第二季度的一些毛利率驱动因素上给出更多的颜色，仅仅是在商品利润率，货运分配方面，然后如果你能够量化你可能期望的关税超过 后半。 这会有所帮助。 谢谢。
On merch margin piece, we wouldn't disclose the margin impact, but the $0.03 that we included in the guidance is largely merchandise margin.
And then, let me just provide a little bit more detail. So, during the period, cost of goods sold increased 10 basis points. Higher merchandise margin and lower distribution costs of 10 basis points each were offset by freight costs that rose 20 basis points. And occupancy deleverage of 10 basis points. Buying expenses were flat versus last year. Selling and general administrative expenses for the quarter increased 5 basis points largely due to higher wage costs.
然后，让我提供更多细节。 因此，在此期间，销售成本增加了10个基点。 较高的商品利润率和较低的分销成本（每个10个基点）被运费上涨20个基点所抵消。 入住率去杠杆化10个基点。 与去年相比，购买费用持平。 本季度的销售和一般管理费用增加了5个基点，主要原因是工资成本上升。
Thank you. And best of luck.
Your next question comes from Kimberly Greenberger from Morgan Stanley.
Great, thank you. I wanted to explore SG&A a little bit more. Wages are, obviously, still growing here in the second quarter. If you could give us any sort of order of magnitude on the wage growth headwind to SG&A here in Q2, that would be helpful. And will that change as we look out to the back half of the year?
And on the cost – the SG&A cost shift out of Q2, do you have – I think you said that was $0.02 benefit to the second quarter. If you could give us the SG&A dollars benefiting Q2 and if that's expected to come in Q3 or Q4. Just any color on that would be helpful. Thanks.
太好了谢谢。 我想更多地探索SG＆A。 显然，第二季度工资仍在增长。 如果您可以在第二季度向SG＆A提供工资增长的任何一个数量级，那将会有所帮助。 当我们看到今年下半年时，这会改变吗？
而且由于成本 - 第二季度SG＆A成本转移，你有没有 - 我想你说第二季度的收益是0.02美元。 如果你可以给我们SG＆A美元受益第二季度，如果预计将在第三季度或第四季度。 任何颜色都会有所帮助。 谢谢。
Kimberly, as you may recall, we increased wages across the board last year to $11. So, we are just now anniversarying that in the second quarter. When we entered the year, despite wage growth, our own $11 increase, and the minimum wage increases in states like California, we guided the year for SG&A, the leverage, at the normal 3%. So, we've been able to offset those costs.
In terms of the $0.02 timing, that wasn't all in SG&A. Some of that's gross margin. And we wouldn't break out that specific. And as a reminder, the $0.02 timing benefit was versus our original guidance, not versus last year.
金佰利，你可能还记得，我们去年全面提高工资至11美元。 所以，我们刚刚在第二季度纪念日。 当我们进入这一年，尽管工资增长，我们自己的11美元增加，以及像加利福尼亚这样的州的最低工资增长，我们指导SG＆A，即杠杆率，正常3％。 所以，我们已经能够抵消这些成本。
就0.02美元的时间而言，这并非全部都在SG＆A中。 其中一些是毛利率。 我们不会突破那个具体的。 并且提醒一下，0.02美元的时间收益与我们最初的指导相比，而不是去年。
Okay. Thanks so much for that.
Your next question comes from Omar Saad from Evercore ISI.
您的下一个问题来自Evercore ISI的Omar Saad。
Thanks for taking my question. Could you talk about some of the women's apparel trends? I know it's improved a little bit, but still kind of lingering issues there. Is that more external fashion trends or external factors related to the category and environment or internal execution issues that you think you can address?
And I also would love to get your thoughts on some of the lower freight rates we're hearing about this year and into next year, if that's material to you guys. Thanks.
谢谢你提出我的问题。 你能谈谈一些女性的服装趋势吗？ 我知道它有所改善，但仍有一些挥之不去的问题。 您认为可以解决的更多外部时尚趋势或与类别和环境或内部执行问题相关的外部因素是什么？
I'll start with the freight. So, generally, for us, freight has played out much as we expected at the beginning of the year. What we saw was 35 basis point deleverage in Q1, 20 basis points deleverage in Q2, and our guidance assumes that it will abate further in the back half.
我将从运费开始。 所以，一般来说，对我们来说，运费已经达到了我们在年初预期的水平。 我们看到的是第一季度35个基点的去杠杆化，第二季度的20个基点去杠杆化，我们的指导假设它将在后半部分进一步减少。
And as it pertains to the women's apparel trends, externally, there isn't any one major big trend driving ladies apparel. I think that's the first thing. But with that, our issues in ladies apparel really related to our own execution issues, for our assortments below our normal standards. So, we feel like we've been working through those issues, we feel like we've made some progress. Still trailing the chain. And as I said before in my comments, we feel like as the year goes on that the business will continue to improve.
而且从外观来看，这与女性的服饰趋势有关，并没有任何一个主要的大趋势推动女装。 我认为这是第一件事。 但有了这个，我们在女士服装上的问题确实与我们自己的执行问题有关，因为我们的分类低于我们的正常标准。 所以，我们觉得我们一直在解决这些问题，我们觉得我们已经取得了一些进展。 仍然落后于链条。 正如我之前在评论中所说，我们觉得随着时间的推移，业务将继续改善。
Your next question comes from Michael Binetti from Credit Suisse.
您的下一个问题来自Credit Suisse的Michael Binetti。
Hey, guys. Thanks. Congrats on a nice quarter. Thanks for taking all our questions here. Just, Michael, a question on your comments on the near term. I think you mentioned that you flowed some inventory for back-to-school, maybe some color on whether you think that strategy seems successful in the early days. And then, you did make a comment on observing department store trends lately and your hunch that we could see promotions stepping up. Maybe just a little more color about how you're looking at the landscape and what you're planning your business for, given the competitive set that you expect in the back half. And I have a follow-up.
大家好。 谢谢。 恭喜一个不错的季度。 感谢您在此处提出我们的所有问题。 只是，迈克尔，关于你近期评论的问题。 我想你提到你为了返校而流了一些库存，也许是你认为这个策略在早期是否成功的一些颜色。 然后，您最近对观察百货商店的趋势做了评论，并且预感到我们可以看到促销活动加快。 考虑到你在后半段所期望的竞争性设置，或许只是更多关于你如何看待景观和你正在计划你的业务的颜色。 我有一个后续行动。
Sure, Michael. We wouldn't comment on kind of inter-quarter trends at this point. We would do that at the end of Q3. And my comments really on the department stores is based on their earnings performance. So, they obviously – the comps were certainly below the off-price and value performers, plus on top of that their gross margins which suggest they were more promotional and that could continue into Q3.
当然，迈克尔。 我们暂不评论此时的季度间趋势。 我们会在第三季度结束时这样做。 我对百货公司的评论基于他们的盈利表现。 因此，他们显然 - 合并后肯定低于价格和价值表现，加上他们的毛利率表明他们更具促销性，可能会继续进入第三季度。
Okay. And I hate asking the most basic questions, but maybe a little color on inventories you're seeing available. Are you seeing things that excite you and, more importantly, maybe why? Is it better brands, new categories opening up? I'm a little surprised packaway was lower year-over-year given what we're seeing in the market and the rush to get product in before the tariffs this year. So, I'm wondering if your plan includes – are we going to see that total inventory number build into 3Q. Maybe any thoughts on that?
好的。 我讨厌提出最基本的问题，但也许你可以看到的库存有点颜色。 您是否看到令您兴奋的事情，更重要的是，为什么？ 是更好的品牌，新的类别开放？ 考虑到我们在市场上所看到的以及今年关税前急于获得产品的情况，我有点惊讶的是，包装价格逐年走低。 所以，我想知道你的计划是否包括 - 我们是否会看到总库存数量进入第三季度。 也许有任何想法？
So, in terms of supply, supply is very plentiful. It is broad across most classifications of business. In terms of the level of packaway, packaway fluctuates and the merchants buy that the way they see it in terms of the product, the timing, the pricing of those goods. And so, it's still in the 40s range, which is pretty average for us, but the merchants have to make that decision. So, as the season goes on, there will continue to see the additional goods.
The departments store business, if it continues to be difficult, you would expect that there would be more supply in the shorter term. And we're liquid and ready to take advantage of those opportunities once the merchants feel that it's at the right price and the right value as we're anticipating it being a very promotional fourth quarter. So…
因此，在供应方面，供应非常丰富。 它涵盖了大多数业务分类。 在包装水平方面，包装波动，商家以产品，时间，货物定价的方式购买。 所以，它仍然在40s范围内，这对我们来说非常平均，但商家必须做出这个决定。 因此，随着季节的推移，将会继续看到额外的商品。
部门存储业务，如果仍然困难，你会期望在短期内会有更多的供应。 一旦商家认为价格合适且价值正确，我们就会充满活力并准备好利用这些机会，因为我们预计这是第四季度的促销活动。 所以…
Got it. Thanks a lot. And best of luck.
得到它了。 非常感谢。 祝你好运。
Your next question comes from Alex Walvis from Goldman Sachs.
您的下一个问题来自Goldman Sachs的Alex Walvis。
Good morning. Good evening, rather. Thanks for the question. The first question that I had is whether you can help us out with the breakdown of comp between traffic where you are and the basket.
Second question was a follow up on the inventory – the in-store inventory growth. Can you talk about the drivers of the decision to flow receipts earlier? Is that all of the reason for the slightly higher in-store inventory or is there anything else going on there?
早上好。 晚上好，相反。 谢谢你的提问。 我遇到的第一个问题是你是否可以帮助我们解决你所在的交通与篮子之间的比较问题。
第二个问题是对库存的跟进 - 店内库存增长。 你能谈谈早些时候决定流动收据的驱动因素吗？ 这就是店内库存略高的原因还是还有其他什么？
This is Travis. In terms of the components of sales, the 3% comp was driven by slightly higher traffic and an increase in the size of the average basket. The higher basket was driven by higher units per transaction. AUR was down just a bit for the quarter.
这是特拉维斯。 就销售的组成部分而言，3％的比例是由略高的流量和平均篮子的大小增加所驱动的。 较高的篮子是由每笔交易的较高单位驱动的。 本季度AUR略有下降。
And on inventory, it was a function of flowing receipts early, within our plan at the beginning of the year, and so that was strategic.
Great. Thanks so much. One follow-up, if I may. The men's business has been strong for some time. Can you talk about what's working there and where the continued strength is coming from?
大。 非常感谢。 一个跟进，如果可以的话。 一段时间以来，男人的生意一直很强劲。 你能谈谈在那里工作的东西以及持续力量的来源吗？
Sure. I would probably say the reason the men's business is good is because we have a solid strategy that the merchants have done a very good job of executing on. So, our level of execution there has been very consistent. And again, as has the strategy. So, there's not one particular thing that's really driving it.
当然。 我可能会说男人的生意好的原因是因为我们有一个坚实的策略，商家已经做好了很好的执行。 所以，我们的执行水平一直非常一致。 而且，战略也是如此。 所以，没有一个特别的东西真正推动它。
Great, thank you. Appreciate all the color.
Your next question comes from Daniel Hofkin from William Blair.
你的下一个问题来自William Blair的Daniel Hofkin。
Good afternoon. Just a couple of quick questions. And I apologize I missed a little bit. So, if you've already answered that, no worries. But as it relates to the – you talked a little bit about – it was SG&A and gross margin, both had a little bit of timing of expenses. I was just curious, did the inventory flow timing affect the gross margin? And if so, was that – how much roughly was that? And then, just if you haven't already given it, some additional color by region and category beyond just sort of a main ones, if you have that. Thanks.
下午好。 只是几个简单的问题。 我道歉我错过了一点点。 所以，如果你已经回答了这个问题，不用担心。 但是因为它涉及 - 你谈了一点 - 它是SG＆A和毛利率，两者都有一点费用的时间。 我只是很好奇，库存流量时间是否会影响毛利率？ 如果是这样的话，那是多少？ 然后，如果你还没有给它，除了区域和类别之外还有一些额外的颜色，如果有的话。 谢谢。
Dan, on the inventory flow, it just happened at the end of the quarter. So, no, it did not have an impact on margins. Margin for the quarter was up 10 basis points. That was a little lower than the benefit that we saw in Q3 that was somewhat impacted by the tariffs that went into effect in June. But we were able to offset that with strong expense control.
Dan，在库存流程上，它恰好发生在本季度末。 所以，不，它对利润率没有影响。 本季度保证金上涨10个基点。 这比我们在第三季度看到的收益略低，该收益受到6月份生效的关税的影响。 但我们能够通过强大的费用控制抵消这一点。
In terms of color and geographic region, as we mentioned in our commentary, the Midwest and Southeast were the strongest regions. Of our other major markets, California and Florida were slightly below the chain, while Texas and the Southwest were a bit better than the chain average. In terms of merchandise categories, we mentioned men's was the strongest category and children's was also pretty strong.
在颜色和地理区域方面，正如我们在评论中提到的，中西部和东南部是最强的地区。 在我们的其他主要市场中，加利福尼亚州和佛罗里达州略低于连锁店，而得克萨斯州和西南部则略好于连锁店平均水平。 在商品类别方面，我们提到男性是最强的类别，而儿童也是非常强大的。
Okay, great. Thank you very much. Best of luck.
好，太棒了。 非常感谢你。 祝你好运。
Your next question comes from John Morris from D.A. Davidson.
Thank you. Congratulations on a nice quarter as well. Barbara, maybe can you give us a little bit more color on dd's and the progress that you're making there and what you're particularly pleased with and sort of how you're benchmarking it?
And then, two other kind of quick housekeeping questions. One is, we talked a little bit about inventory in the plan. But can you give us a sense of where inventory at the end of Q3 might be related to sales? Same kind of growth, about in line, I'm assuming.
And I don't know if you would answer this or not, I'm just kind of curious. We've talked a lot about freight. It's just a kind of quick one. Those freight contracts, when you're negotiating terms, is that an annual event with somebody or is it kind of a continuous thing? It just kind of helps us understand how it should flow through. Thanks.
谢谢。 祝贺一个不错的季度。 芭芭拉，也许你能给我们更多关于dd的颜色以及你在那里取得的进展以及你特别满意的是什么以及你如何对它进行基准测试？
然后，另外两种快速的内务管理问题。 一个是，我们在计划中谈了一些库存。 但是，您能否让我们了解第三季度末的库存可能与销售有关？ 我假设，同样的增长，就行了。
而且我不知道你是否会回答这个问题，我只是好奇。 我们谈了很多货运。 这只是一种快速的。 当你谈判条款时，这些货运合同是与某人一年一度的活动，还是一种连续的事情？ 它只是帮助我们理解它应该如何流过。 谢谢。
Sure. So, to go through those, we don't give forward-looking guidance on inventory levels. And on freight, for us, we have already gone through our annual renewals. We did that earlier this year. So, we have some pretty good visibility at this point.
当然。 因此，为了解决这些问题，我们不会就库存水平提供前瞻性指导。 在货运方面，对我们来说，我们已经完成了年度续订。 我们今年早些时候做到了。 所以，我们在这一点上有一些非常好的可见性。
And as it pertains to dd's, as I said before, we've had strong growth both in sales and profits. But for competitive reasons, we don't really get more specific than that, other than to say that dd's has a similar four-wall profit margins to Ross.
Your next question comes from Paul Trussell from Deutsche Bank.
Good afternoon. I'm curious to hear what you are seeing in terms of new store performance both on the Ross and dd's side.
Yeah, this is Travis. Our new store performance is pretty consistent with our historical averages of between 60% and 65% of an average comp. It fluctuates a little bit quarter-to-quarter depending on where the new stores are located. But, overall, the performance is pretty consistent.
是的，这是特拉维斯。 我们的新店表现与我们的历史平均值相当，平均值为60％至65％。 根据新店的位置，它每季度波动一点点。 但总的来说，性能非常一致。
Thank you. And just sort of – just a bigger picture, just curious if there is any thoughts around e-commerce as you look in the years ahead.
谢谢。 只是一点点 - 只是一个更大的图片，只是好奇如果你对未来几年的电子商务有任何想法。
On e-commerce, our view on e-commerce has not changed. We think in the moderate off-price business, the economics are just not sustainable. Over many years now, we've posted comp sales at the high end of retail benchmarks and we've done this without e-commerce. So, rather than being distracted by what we view is unsustainable business, we'd rather focus ourselves on what's proven – proven to be very profitable opportunity in front of us.
在电子商务方面，我们对电子商务的看法没有改变。 我们认为，在温和的低价业务中，经济学是不可持续的。 多年以来，我们已经在零售基准测试的高端发布了comp销售，我们在没有电子商务的情况下完成了这项工作。 因此，我们宁愿专注于经过验证的事实 - 在我们面前证明是非常有利可图的机会，而不是被我们认为不可持续的业务分散注意力。
Thank you. And congratulations on recent promotions.
Thank you, Paul.
Your next question comes from Ike Boruchow from Wells Fargo.
Hey, good afternoon. Just on the CapEx spend, I think you guys guided it to $600 million this year. I'm just curious, is that still the right number?
And then, I think there's a new DC build out embedded in there. I'm just trying to understand what maybe the run rate of CapEx should be into next year.
And then, to whoever wants to answer it, should there be some kind of supply chain pressure on margin at some point? I'm not sure if you're already seeing that or maybe something we should keep in mind for our models next year. Any color on that? Thank you.
嘿，下午好。 仅仅是在资本支出上，我认为你们今年的指引达到6亿美元。 我只是好奇，这仍然是正确的数字？
那么，对于想要回答它的人，在某些时候是否应该对利润率产生某种供应链压力？ 我不确定你是否已经看到了这个或者我们明年应该为我们的模型留下的东西。 有什么颜色吗？ 谢谢。
So, the DC. I'll let Travis cover the capital, but on the DCs, next couple years we would expect to open. So, we would not expect any impact of that new DC as we move into 2020.
所以，DC。 我会让特拉维斯覆盖首都，但在DC上，未来几年我们会期望开放。 因此，当我们进入2020年时，我们不会指望新DC产生任何影响。
In terms of total capital spend, it hasn't changed. We're still expecting to spend around $600 million this year. About a third of that is related to distribution center build-outs, et cetera. In terms of going forward, again, I think we've said in the past, we expect total capital spending to be elevated for a couple of years.
就总资本支出而言，它没有改变。 我们仍然期望今年花费大约6亿美元。 其中约三分之一与配送中心建设有关，等等。 就未来而言，我认为我们过去已经说过，我们预计总资本支出将会提升几年。
Your next question comes from Jay Sole from UBS.
Great. Thank you. I have a question about the $0.03 impact from tariffs. Is that a net number, meaning is there sort of like a $0.06 headwind is being offset with $0.03 of cost cutting or other mitigation factors? Or is it just $0.03 is what the actual impact of the tariff is?
大。 谢谢。 我对关税的0.03美元影响有疑问。 这是一个净数字，意味着是否有类似0.06美元的逆风被0.03美元的成本削减或其他缓解因素抵消？ 或者只是0.03美元是关税的实际影响是什么？
Yeah, on that question, so, obviously, we had the tariffs. We started the year with 10% tariffs on Tranche 3 which was mainly in categories like home, cosmetics and accessories. That expanded to 25% in June. We were able to mitigate those tariff impacts with tightening our belts on cost. With this, this $0.03 is our best estimate on what the margin could impact – margin impact could be. And at this point, I don't think we can offset that with cost reduction. But, again, hope it plays out more favorably from this.
是的，在这个问题上，显然，我们有关税。 我们今年开始对Tranche 3征收10％的关税，主要是家居，化妆品和配件等类别。 这在6月份扩大到25％。 我们能够通过收紧成本来减轻这些关税影响。 有了这个，这0.03美元是我们对保证金可能影响的最佳估计 - 保证金影响可能是。 在这一点上，我认为我们不能通过降低成本来抵消这一点。 但是，再次希望它能从中获得更好的效果。
Right. And then, Barbara, I wanted to ask you is, if apparel as a category is a little bit slow and there's some opportunities to do more business in categories like pet supplies or auto parts or food or some of the newer categories in the store, how did those – what's the interplay like between those categories and some of your more traditional categories like apparel and footwear? How does the customer experience change if they're coming in to buy apparel, if they're also kind of looking at auto parts and pet supplies and toys and food and other things that maybe they're not used to seeing in the store?
对。 然后，Barbara，我想问你的是，如果服装作为一个类别有点慢，并且有一些机会在宠物用品或汽车零件或食品或商店中的一些新类别等类别中开展更多业务， 那些是什么 - 这些类别和一些更传统的类别如服装和鞋类之间的相互作用是什么？ 如果他们来购买服装，如果他们也看到汽车零件和宠物用品，玩具和食品以及其他可能不习惯在商店看到的东西，客户体验如何变化？
Well, I do think the customer likes it because it enhances the treasure hunt, right? So, I come in, thinking I'm going to buy something in ladies today, and I go to ladies and I look at ladies, and this customer likes to touch and feel, likes to see new things and something that they didn't see the last time they were in the store. Average customer shops the store more than three times a month. So, we think it's exciting. And the customer enjoys having something new. The challenge is to keep continually adding new things to make the treasure hunt – make her come back again and again, with exciting new products.
嗯，我认为客户喜欢它，因为它增强了寻宝权，对吧？ 所以，我进来，以为我今天要在女士们买东西，然后我去找女士们，我看看女士们，这位顾客喜欢触摸和感受，喜欢看新事物和他们没有的东西 看他们最后一次在商店里。 一般客户每月为商店购物超过三次。 所以，我们认为这很令人兴奋。 客户喜欢有新的东西。 挑战在于不断添加新东西以进行寻宝活动 - 让她一次又一次地回来，带来令人兴奋的新产品。
Got it. Thank you.
Your next question comes from John Kernan from Cowen.
Good afternoon, everybody. Thanks for taking my question.
Can you talk about any emerging competitive threat from the growth of resale? There's been some industry chatter about it recently. There's been some executives within that channel talking about the share that they're stealing from off-price. Have you seen any effects of that? Do you think that this is any type of a long-term competitive threat? Then I have one quick follow-up. Thank you.
你能谈谈转售增长带来的任何新兴竞争威胁吗？ 最近有一些行业喋喋不休。 该渠道中的一些高管正在谈论他们从低价中窃取的份额。 你见过那种效果吗？ 您认为这是任何类型的长期竞争威胁吗？ 然后我有一个快速的跟进。 谢谢。
I would say, over the long term, we've competed with – against many different types of retail concepts, brands, department stores, specialty stores, and have done extremely well. So, we don't see it as a long-term competitive threat.
Got it. And then, maybe can you just talk about the performance of home? It feels like the category in general has become a little bit more competitive recently. Can you talk about your specific performance? Thank you.
得到它了。 然后，也许你可以谈谈家庭的表现吗？ 总的来说，这个类别最近变得更具竞争力。 你能谈谈你的具体表现吗？ 谢谢。
Sure. Home for the quarter performed in line with the chain. We still continue to see this long-term growth opportunity because it's, obviously, a wide assortment of products. But a performance along with the chain, we're never fully satisfied with any part of our business. So, we would like to continue expand and to grow that business. But for competitive reasons, I wouldn't talk more about the specifics of that.
当然。 本季度的首页与连锁店一致。 我们仍然继续看到这个长期增长机会，因为它显然是各种各样的产品。 但是随着连锁店的表现，我们对我们业务的任何部分都不会完全满意。 因此，我们希望继续扩展并发展这项业务。 但出于竞争原因，我不会更多地谈论具体情况。
Your next question comes from Janine Stichter from Jefferies.
Hi. Just had a quick follow-up on the tariffs just for modeling purposes. Is there any major variation we should think about in terms of how the tariffs flow through and which comes through in September versus what flows through in December? Thank you.
你好。 只是为了建模目的，快速跟进关税。 关于关税如何流通以及9月份流出的流量与12月份的流量相比，我们是否应该考虑任何重大变化？ 谢谢。
Because we haven't given fourth quarter guidance at this point, it's hard to say other than we have embedded the $0.03 into the back half guidance. I think if you looked at the – it doesn't start till September. And I think if you look at the industry, I would say that there's more of the apparel and shoes in the September tranche than in the December tranche. So, that's the color I'd add to that.
因为我们目前还没有给出第四季度的指导，所以除了我们已经将0.03美元嵌入后半部分指导之外，很难说。 我想如果你看一下 - 它直到九月才开始。 我想如果你看一下这个行业，我会说9月份的服装和鞋子比12月份的更多。 所以，这就是我要添加的颜色。
Great, thank you.
Your next question comes from Laura Champine from Loop Capital.
您的下一个问题来自Loop Capital的Laura Champine。
Thanks for taking my question. It's about the mechanics of getting to the $0.03 impact from tariffs. Since you've got such a significant open to buy, I'm wondering whether you just calculated that by looking at what you'd bought year-ago period from China.
谢谢你提出我的问题。 这是关于从关税中获得0.03美元影响的机制。 既然你有一个如此重要的开放购买，我想知道你是否只是通过观察一年前从中国购买的东西来计算出来的。
Well, remember our business. So, there is a small portion of our business where we directly import. There is – our thought is that over the majority of the goods that we procure in apparel and shoes was originally sourced from China. That said, it's hard to know what's going to happen at this point. It just was announced several weeks ago in the markets. What I would say is, the majority of our business is close-outs. So, if you look at what we have left to buy year-over-year, we would normally have a lot of close-out in our receipt plan for the remainder of the year.
好吧，记住我们的业务。 因此，我们的业务中有一小部分是我们直接导入的。 有 - 我们的想法是，我们在服装和鞋子上采购的大部分商品最初来自中国。 也就是说，很难知道此时会发生什么。 它刚刚在几个星期前在市场上宣布。 我要说的是，我们的大部分业务都是结束。 所以，如果你看一下我们剩下的购买量，我们通常会在今年余下的时间里收到大量的收货计划。
And because you use packaway inventory so extensively, would that potentially delay any impact of tariff-related inflation beyond the time horizon when it would have hit some of your competitors?
Certainly a benefit for us.
Got it. Thank you.
Your next question comes from Dana Telsey from Telsey Advisory Group
您的下一个问题来自Telsey Advisory Group的Dana Telsey
Good afternoon, everyone. As you think about the expense timing shifts that went on, how much should go in each quarter as you think about in the third and the fourth quarter? And is there anything in particular that shifted from the second quarter to the back half? And just lastly, how you're thinking of marketing for the back half of the year? Any changes in what you're spending or what you're doing? Thank you.
大家下午好。 当你考虑到费用时间的变化时，每个季度你应该在第三季度和第四季度考虑多少？ 是否有任何特别的东西从第二季度转移到后半部分？ 最后，您如何考虑今年下半年的营销？ 您所花费的金额或您正在做的事情有何变化？ 谢谢。
In terms of the timing, I just want to reiterate that the timing difference is versus our original guidance So, that $0.02 flows into our back half guidance. And so, we wouldn't break that out between Q3 and Q4.
On marketing, our marketing strategy and message has been very consistent over the years and hasn't changed for us. The message is we offer the best values in apparel and home fashions. We think, frankly, that marketing can help support our business, but what really drives our business is great bargains in the store. If we have great assortments, then marketing can help support that trend.
在市场营销方面，我们的营销策略和信息多年来一直非常一致，对我们来说并没有改变。 信息是我们提供服装和家居时尚的最佳价值。 坦率地说，我们认为营销可以帮助支持我们的业务，但真正推动我们业务的是商店里的便宜货。 如果我们有很好的分类，那么营销可以帮助支持这一趋势。
Your next question comes from Roxanne Meyer from MKM partners.
Thank you. Good afternoon. And thanks for taking my question. I wanted to ask two things. One about AUR, wondering if it was down slightly on mix or pricing.
And then, secondly, I'm wondering just in the context of the plentiful inventory availability, so far this year and going forward, if you are looking to change your mix or have the opportunity to change your mix, if you so desire between good, better and best product. Thanks a lot.
谢谢。 下午好。 谢谢你提出我的问题。 我想问两件事。 一个关于AUR，想知道它是否在混合或定价方面略有下降。
然后，其次，我想知道只是在充足的库存可用性的背景下，今年到目前为止和未来，如果你想改变你的组合或有机会改变你的组合，如果你想要的好 ，更好，最好的产品。 非常感谢。
In terms of AUR, the decline was primarily driven by the change in mix of sell-through within categories.
In terms the availability and the changing of our mix, we're going to take advantage of whatever we think the best deals are out there. We don't go in there and say, I want X amount of our purchases to be good, to be better and to the best. We go out to see what the best possible deals and values are for the customer, and that's how we purchase it. So, the merchants are out buying it the way they see it. It's not as much top-down as you might think. It's really more of bottom-up based on the deals, based on the value that they can deliver.
在可用性和我们的组合变化方面，我们将利用我们认为最好的交易。 我们不去那里说，我希望我们购买的X数量要好，要做得更好，做到最好。 我们出去看看客户的最佳交易和价值是什么，这就是我们购买它的方式。 因此，商家不会像他们看到的那样购买它。 它不像你想象的那样自上而下。 根据他们可以提供的价值，它实际上更多是基于交易的自下而上。
Okay, great. Thanks a lot.
And your last question comes from Paul Lejuez from Citi.
Hey. Thanks, guys. Just going back to the ladies apparel, I think you said it's still performing below the chain. I guess, something always has to be below average. So, is there any color you can give on the comp ex that ladies business and how that has changed? Just trying to get a sense of the drag from that piece over the last couple of quarters that it has underperformed.
And then, second, in the first quarter, you talked about SG&A timing as well. And I'm just curious if this is the timing shift that we're talking about out of 2Q. Are we talking about the same expenses that keep getting pushed out or are we talking different expense buckets? If you could be maybe a little bit more specific about what's moving around.
嘿。 多谢你们。 回到女士服装，我想你说它仍然在链条下面表现。 我猜，有些东西总是低于平均水平。 那么，你有什么颜色可以给女士们的生意以及改变了吗？ 试图了解它在过去几个季度中表现不佳的拖累。
然后，第二，在第一季度，你也谈到了SG＆A时间。 我只是好奇这是否是我们在第二季度谈论的时间转变。 我们是在谈论不断被推出的相同费用，还是我们在谈论不同的费用桶？ 如果你可能会更具体地了解什么在四处走动。
Yeah, Paul. So, we always like to start the year with guidance. And then, as we move through the year, make sure we update you on how that impacts. So, for the second quarter, for instance, we were $0.03 above the high end of the range, but we only flowed $0.01 of that through to the full-year. And no, those weren't the same types of expenses. We have things – quarterly timing differences on projects that may be delayed or we may make decisions that delay projects until later in the year. So, that's all we're calling out in the guidance.
是的，保罗。 所以，我们总是喜欢在指导下开始这一年。 然后，当我们度过这一年时，请确保我们更新您的影响。 因此，例如，对于第二季度，我们比该范围的高端价格高出0.03美元，但我们只将0.01美元的价格流入全年。 不，这些费用并不相同。 我们有一些事情 - 可能会延迟的项目的季度时间差异，或者我们可能会做出将项目推迟到今年晚些时候的决策。 所以，这就是我们在指导中提出的所有要求。
In terms of ladies comp, we wouldn't get into specifics of that – in terms of providing specifics
What I would say on the comp, though, obviously, we were up against – we went from a 2% to 3%, but we're up against a 5%. So, on a multi-year basis, there was acceleration across the division.
然而，我对comp的看法很明显，我们反对 - 我们从2％上升到3％，但是我们上升了5％。 因此，在多年的基础上，整个部门都有加速。
Got it. And then can you just remind us, the issue of ladies is that a dd's issue as well or just Ross?
Got you. Thanks. Good luck, guys.
有你。 谢谢。 祝大家好运。
I will now turn the call back over to Barbara Rentler for closing remarks.
Thank you for joining us today and for your interest in Ross Stores. Have a great day.
感谢您今天加入我们以及您对Ross Stores的兴趣。 祝你有美好的一天。
This concludes today's conference call. You may now disconnect.
- 罗斯百货有限公司 电话会议
- 罗斯百货有限公司 财务报告
- 老虎证券开户教程 美股8折佣金， 11股小米股票（价值385港币）, 还会邀请你进付费交流群
- 雪盈证券开户教程 开户后 最高可领取1066港币。美股佣金最低0.002美元/股，港股小额免佣，打新手续费全免
- 富途牛牛证券开户教程 开户即可领取1股汇丰，入金达到2万港币即可领取1股腾讯；新股一键认购，最高支持10倍杠杆融资，免新股认购手续费，暗盘交易免佣；
- 华盛通开证券户教程 开通美股或者港股， 享受现金200元,美股8折奖励。
- 微牛证券开户教程 首次入金到账2000美金以上，可以免费抽取5只股票，每只价值9-1400美金。转仓可以报销，上限100美金。
- 必贝证券开户教程 开通后 享有280元现金奖励
- 玖富证券开户教程 开通后 最低入金1W港币可以领218元红包
- 长桥证券开户教程 开通后 可获得15美金~25美金奖励
- 盈立证券开户教程 注册随机领3股，注册后可随机抽取苹果、腾讯、阿里、京东等热门股票
- 如何办理新加坡卡, 在线办理, 没有资金门槛
- 美股开户教程, 请查看
- 港股开户教程, 请查看
- 美股、港股入金教程, 请查看
- 美股、港股投资交流群, 请查看
- 美股、港股开户优惠汇总, 请查看
- 美股、港股付费交流群, 请查看