Sometimes, not doing bad is good.
With the fear of a tapped-out consumer having little to spend this holiday season, many investors have been braced for poor results from the retail sector. It turns out that just making good on a company's sales targets have been well received.
One company that didn't do bad was Ross Stores
It turns out that regional exposure had a material influence with the company's performance. The company lagged close competitor TJX
However, Ross fared better than its smaller competitor Stein Mart
One last note from the report is the company's management of inventory. Ross noted that inventories only grew 2% as improvements in the supply chain offset growth in its new store build out. While Ross' margin slippage is not good, management is offsetting the declines with increased inventory turns, which help lower its cash conversion cycle and increase its returns on invested capital.
And as the company continues on to new highs, not doing bad can be rather good.
For related Foolishness:
- Ross Stores Ramping Up: Fool by Numbers
- TJX Gains Strength
- Ross Stores: The Rodney Dangerfield of Stocks (somewhat dated, but a classic.)
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Fool contributor Matthew Crews welcomes your feedback -- really! He has no financial position in any of the companies mentioned. The Motley Fool has a disclosure policy.