Ross stores was an up and comer in 1993. It had solid growth in sales and earnings while also being well managed with excellent cost control. Ferber and Balmuth put them on a solid growth trajectory. It also sold with a mid-teens P/E. Then, it split three times in the next ten years.
Ross Stores provides value. In recessionary times, value sells. While some may stop buying Ross's retail value plays, others are likely to trade down, just as Walmart did after 2008.
Known for solid performance, the current CEO is turning the corner on the ill effects of Covid19. Respectfully, they supported a full stop during Covid and borrowed to keep growing. Good cultures begat good results. Ross Stores is one of those gems. You only have to dig into their GAAP numbers to see a finely managed organization..
The current CEO, who shuns the spotlight, is making the wheels turn without fan fair. Expect their trend in solid well executed performance to resume shortly. After all, smart and modest management is the special sauce that makes great things happen.
Always remember, value sells... No matter when, value is always in style.
Be smart, be well-read, be aware and be successful.
"The advantage of financial well-being can make a person indulgent, rob him of the true measure of meaningful accomplishment and allow him to live a shallow life; or it can give him the ability to make a difference in the world that cries out for compassion, action and commitment."
- Stuart G. Moldaw founder of Ross stores
