ROSS STORES, INC.ROST

ROSS STORES, INC. Segments Disclosure

10-KFiled Mar 31, 20262 min read
Segment Reporting
The Company has 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 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 fiscal years ended January 31, 2026, February 1, 2025, and February 3, 2024:

($000)202520242023
Sales$22,750,559 $21,129,219 $20,376,941 
Less:
Costs and Expenses1
Cost of goods sold, excluding occupancy costs2
15,086,669 13,983,087 13,612,994 
Occupancy costs3
1,360,587 1,277,419 1,188,607 
Store related costs4
3,042,354 2,859,879 2,762,186 
Other segment items5
553,592 423,248 505,491 
Segment operating income2,707,357 2,585,586 2,307,663 
Interest income, net6
(134,800)(171,568)(164,118)
Earnings before taxes$2,842,157 $2,757,154 $2,471,781 
1 Refer to Note A: Summary of Significant Accounting Policies in the Notes to 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 Occupancy costs primarily includes rent, depreciation, and amortization related to the Company’s retail stores.
4 Store related costs primarily includes store payroll, other store operating expenses, and advertising costs.
5 Other segment items included in Segment operating income primarily includes other general and administrative expenses.
6 Refer to Note A: Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements for disclosure of the components of Interest income, net.

Historical Timeline

Fiscal YearFiled
2026Mar 31, 2026Showing above
2025Apr 1, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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