Segment Reporting

3 Months Ended

May 03, 2025

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has one reportable segment. As of May 3, 2025, the Company identified two operating segments: Ross and dd’s DISCOUNTS. Each operating segment’s operations include only activities related to off-price retailing in stores throughout the United States and its territories. The Company determined that the two operating segments share similar economic and other qualitative characteristics and are therefore aggregated into one reportable segment.

The Company considers operating income, defined as earnings before interest and taxes, to be the measure of profit or loss for its reportable segment. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as Total assets. Segment information is prepared on the same basis that the Company’s Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), manages the segments. The CODM uses operating income to monitor budget versus actual results, make key operating decisions, perform competitive analysis to the Company’s peers, and make resource allocation decisions.

The financial information below, including the significant expense categories regularly provided to the CODM, is presented for the Company’s reportable segment for the three month periods ended May 3, 2025 and May 4, 2024:

	Three Months Ended
($000)	May 3, 2025		May 4, 2024
Sales	$	4,984,971	$	4,858,067
Less:
Costs and Expenses1
Cost of goods sold, excluding occupancy costs2	3,254,651		3,180,466
Occupancy costs	326,715		310,206
Store related costs3	677,414		654,467
Other segment items4	119,721		121,815
Segment operating income	606,470		591,113
Interest income, net5	(34,409)		(45,950)
Earnings before taxes	$	640,879	$	637,063
1 Refer to Note A: Summary of Significant Accounting Policies in the Notes to Condensed Consolidated Financial Statements for depreciation and amortization expense.
2 Cost of goods sold, excluding occupancy costs primarily includes merchandise related costs, distribution costs, freight costs, and buying costs.
3 Store related costs primarily includes store payroll, other store operating expenses, and advertising costs.
4 Other segment items included in Segment operating income primarily includes other general and administrative expenses.
5 Refer to Note A: Summary of Significant Accounting Policies in the Notes to Condensed Consolidated Financial Statements for disclosure of the components of Interest income, net.