Ross Stores, Inc. Q4 FY2026 Earnings Call

Good afternoon, and welcome to the Ross Stores First Quarter 2026 Earnings Release Conference Call. The call will be given prepared comments by management followed by a question-and-answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. 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 in the company's fiscal 2025, form 10K, and fiscal 2026, form 8Ks on file with the SEC. And now, I'd like to turn the call over to Jim Conroy, Chief Executive Officer.

Thank you, John, and good afternoon, everyone.

Joining me on our call today are Michael Hartshorn, Group President and Chief Operating Officer, Bill Sheehan, Executive Vice President and Chief Financial Officer, and Connie Cow, Senior Vice President, Industrial Relations. Before we walk through the results, I would like to thank our associates for an exceptional first quarter. The entire organization contributed to the very strong performance. Our marketing team drove strong customer acquisition and engagement through a combination of creative messaging and changes to our media mix. Our merchants and planners delivered compelling assortments and worked tirelessly to secure product to feed the outside's demand. Our supply chain network stepped up their efforts to keep the stores in stock in a timely manner. And finally, our stores team executed extremely well in supporting the increased product flow and customer activity. Remarkable group effort, and I couldn't be more proud of the teamwork demonstrated across the entire organization. Thank you to the entire team. I will now turn to our first quarter results. We delivered it in an outstanding quarter with total sales of 21% and earnings per share growth of 37%. The overall growth in total sales was driven by a very robust 17% increase in comparable store sales. While we attribute a portion of this growth to the increase in tax refunds versus last year, we are quite pleased that the underlying fundamentals of our growth were extremely healthy. The comp increase was primarily driven by a growth in transactions, and we saw healthy increases in customer count on a comp store basis across income levels, ethnicities, and all age groups, including the young customer. In terms of monthly cadence, the quarter started strongly as we transitioned well from the holiday selling season into spring, supported by more balanced inventory levels that allowed us to drive strong demand in February, where we historically struggled. The strength continued with solid mid-teen comps for the balance of the quarter. Performance at Ross was broad-based across both merchandise areas and geographies. While ladies and cosmetics were our strongest businesses, every major merchandise category posted comp growth in the teens or higher. We saw strength across the entire country with the Midwest performing the best. CD's discounts also delivered solid top-line sales with strong performance across merchandise categories and geographic regions. Moving to inventory, consolidated inventories at the end of the quarter were up 12%, and TACAway represented 36% of total inventory compared with 41% last year. We were pleased with the overall level and composition of our inventory entering the second quarter. To store growth, we expanded into new and existing markets and opened 13 new Ross and four DDs discounts locations in the first quarter. We continued to plan for 5% unit growth for approximately 110 new stores this year, comprised of about 85 Ross and 25 DDs. As usual, these numbers do not reflect our plans to close or relocate about 10 to 15 older stores. Consistent with our performance in 2025, we continue to be encouraged by the strength of the store openings in both new and existing markets. We are confident in our fundamental strategy to better connect merchandising, marketing, and stores to create an improved customer experience. While the initial results are quite encouraging, we believe we are still in the early stages with many of our initiatives and see opportunities to drive continued growth in sales going forward. Now, Bill will provide further details on our first quarter results and additional color on our second quarter outlook.

Thank you, Jim. Turning to our financial results, starting with the first quarter. As Jim mentioned earlier, total sales for the quarter grew 21% to 6.0, comparable stores 16%, primarily driven by an increase in the number of transactions. The 2026 operating margin expanded 120 basis points to 13.4%, compared to last year's 12.2%, and significantly exceeded our expectations. It was 145 basis points lower in the quarter. Merchandise margin improved by 85 basis points, while occupancy leveraged by 60 basis points on the strong sales results. Distribution and domestic freight costs declined by 15 and 10 basis points respectively. These benefits were earnings upside. $650 million compared to $479 million, 37% to $2.02 from a million shares during the quarter. $319 million under the new two-year $2.55 billion authorization March of this year, $1.275 billion in stock during 2026. Before turning to our forward outlook, I'd like to briefly address tariff refunds. We have submitted refund claims for tariffs. Given ongoing uncertainties related to the timing and ultimate amount of the reimbursement, we have excluded potential refunds from our forward guidance. Look for the second quarter. As Jim noted earlier, we exited spring with solid momentum. As a result, we are projecting comparable store sales for the 13 weeks ending August 1, 2026 to be up 6% to 7% and earnings per share to be in the range of $1.85 to $1.93. The operating statement assumptions that support our second quarter guidance include the following. Total sales are projected to increase 9% to 11% versus last year.

We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We ask that you please limit yourself to one question and one follow-up. One moment, please, while we poll for questions. And the first question comes from the line of Matthew Boss with J.P. Morgan. Please proceed.

Great, and congrats on a really great quarter.

Thank you, Matt.

So, Jim, I guess the question is, could you help us to bottoms-up build, whether it's the 17 comp in the first quarter or 9% comps, if I look at trends over the past year, and maybe just relative to the consistent 4% comp that the business generated pre-pandemic. What I'm trying to get at is how durable you believe that the drivers that's putting together these kind of comps are today and anything that you believe the business would need to give back as we think multi-year.

Sure, great question. The company before I got here, I think if we made any changes, it's a shift towards more focus on customer acquisition. So if you think of the health of our comp, all comp sales growth is created equally. So the health of our comp has been driven by transactions for the third consecutive quarter, and it's even more driven by transactions this quarter than even in the fourth quarter and the third quarter in terms of the transactions as a component of their overall comp. In terms of the durability, those transactions are driven by more customers. So we're seeing a double-digit increase in customer count on a comp store basis, that very strong growth across the young customer, all income levels. You know, if you think about the flywheel concept of more environment, great merchandise selection, getting them in the store, converting shoppers into buyers with just compelling assortments and tidier stores and better things for merchandise, and that just drives more cost for ourselves. It gives you more store labor and more marketing, and we talked about this on the last call. But we just have gotten started on many of these initiatives. So we probably had two unique cases in the first quarter. One was idiosyncratic to Ross, which was the first quarter historically had been one where we were very conservative. So we probably had a little bit more pent-up demand to go after. The second one was across all of retail, at least all of retail at heart, which is we do believe that some portion of the sort of outsized comp could be attributed to higher tax rebates versus last year. And even if you strip those two things out, we have had a very, very strong quarter quite pleased. It's a really great team effort with every function in the business contributing.

Great caller. Jim, you cited exiting the quarter with continued momentum, and I know you don't lay out 6% to 7% forecast lightly. Have you seen any change in customer behavior so far in the second quarter, or just any change in trends, maybe, if we're thinking about by category?

I wouldn't comment on the second quarter, but maybe it would be helpful during the first. The quarter started particularly strong in February. Jim talked about this a little bit, but we transitioned very well from holiday to spring selling, a place where we've struggled for a number of years. We've always been very, very conservative to start the year, and the merchant and planning team did a fabulous job of planning and executing against that transition. We continued to see mid-teen comp for the balance of the quarter, tax refunds, Jim also mentioned that. And then the Easter calendar shift did move some demand, and again, that's demand versus since last year, earlier in the quarter.

Great caller, best of luck.

Thank you. And the next question comes from the line of Lorraine Hutchinson with Bank of America. Please proceed.

Thank you, good afternoon. The 17 was an unprecedented comp and probably was a result of unprecedented amounts of Chase inventory. So can you just talk about how comfortable you are with your inventory reserve levels and quality and ability to continue to Chase into this six to seven comp? recognizing Vernon Karen thank you this question comes from the line of Paul

Leslie with Citigroup please proceed with your question thanks it's treated Cogan filling in for Paul I think you guys said domestic freight leverage this quarter and I was wondering what the driver was there and what you're building in for the year and then I think ocean is a smaller piece for you but wondering if you could give some color on what you're seeing on that piece of freight as well. And then I have one follow-up. Thanks.

It did lever 10 bips year over year, but, you know, higher expected fuel prices did limit some of that leverage that we typically get from that sales out performance. And going forward, we're kind of finalizing freight contracts as we speak, and our guidance does reflect the assumption that we'll have elevated fuel prices that will pressure freight costs, both ocean and domestic, in the second quarter and the full year.

And you guys mentioned traffic being the driver this quarter. I was hoping you could talk about some of the other metrics like average basket, AUR, units, conversion.

The average basket also grew by a significant lower proportion of the sales growth. And the units sold were flat.

You said flat?

Units per trade were flat. i'm sorry i was just clarifying black yeah thank you thank you and the next question comes from the line of corey tarlo with jeffries please proceed with your question great thanks um i guess jim as you think about how broad based this really strong uh comp has been And can you talk about if you saw any inflections by category, whether it's ladies, home, footwear, or even juniors, perhaps, within ladies? And is there anything specific you think that's driving that mixed shift? Because there's very clearly been quite a strong acceleration in trends quarter over quarter.

Yes. Thank you. fraud-based, and I think it's typical, obviously, very, very pleased with the performance across the board and every buying office.

Makes sense, and that's also very helpful. I have a follow-up for Bill. Just as we think about the flow-through on comp versus plan, could you just remind us how to think about that and maybe what you saw in the quarter? Thanks so much.

So much, and best of luck.

And the next question comes from the line of Michael Benetti with Evercore ISI. Please proceed with your question.

Hey, guys. Thanks for taking our question. Congrats on the quarter. Let me think about that. The last answer there is, you know, we delevered SG&A on a 17 comp. It sounds like there's some potential investment in incentive comp. Certainly, incentivized employees can help throw the top line. so seems like a good investment but does SG&A ever done the six or seven comp in the second quarter or the the two to three comp that's baked in the back half or you know if we come in above that do we do we start looking for other buckets to invest in to support the top line Michael maybe I get some more on the first as we said in the commentary we delivered by 25 basis point, that was all due to higher incentives.

Without the incentives, both marketing and store-related costs leveraged during the quarter. We had in our guidance plan selling that was due to wage growth and with improvements in the store experience to drive top-line growth that we believe was a distribution But we do, again, anticipate merge margin to remain a benefit in Q3 and Q4.

Okay. And then if I could follow that. On new stores, you gave us kind of a higher new store productivity assumption last year, last quarter, Michael, as far as modeling out relative to the 65 you gave us historically. But you're delivering numbers, you know, well above that new guidance. I think it was 75. I think it was something with a nine handle this quarter. Can you just give us a little idea of the financial bridge into what looks to be a pretty different new store opening profile?

Sure. And openings, and we are in, I'd say, probably the best shape we've been in in terms of getting leaps done. So this year looks very, very, very good. And then our pipeline into next year also looks very good to maintain that 5% unit growth. You asked about new store productivity. last year a new store productivity was above that level so there's a number of stores that haven't comped yet those stores continue to do very very well we gave you guidance for 70 to 75 percent of a mature store for the new stores this year I say it's very early but we hope to beat them thank you guys and the next question comes from the line of Chuck Grom with Gordon Haskett please proceed with your question.

Hey, thanks very much. Just to follow up on Michael's question, just, you know, NSP really strong. How are you thinking about units going forward? Do you still want to target the 5%? Do you think about densifying in the Northeast more? Just a little bit of thought on unit growth maybe over the next several years, given how strong you're opening up stores right now.

Yeah, I think our internally is the 5% unit growth over the longer term. If we happen to get a big deal through bankruptcy or get ahead of that store opening, I don't think we'd hesitate to increase that target.

Okay, and anything geographically you'd think about differently?

Well, the Northeast is certainly open. That's certainly built into our five-year plan in New York.

We have a loan, and obviously we'll go further into the Northeast, but we exit 25 with 12 stores in the New York area and have two locations in the in the first quarter and those stores are doing very well for us great and then as you look as you think about the second half right and then in the tougher comparison about the lab how do you think about the drivers to help you comp the comp the implicit comp is a two to three what gives you the confidence there in terms of the marketing in-store changes the product assortment I guess how would you force rank what gives you the confidence to lap that positively I would circle back

to some of my earlier comments on this call and on the prior two schools of thought one is you're up against strong comps and how are you possibly going to get put numbers on top of that but the second is you're in the early stages of transforming a company you're starting to build momentum driven by more customers that customer count increase continues to get stronger with each quarter and we also have a lot of merchandising initiatives right we're that the merchants are constantly opening up new brands we found the confidence now to introduce brands that are more in the better and best price points and add those to the great stable of brands that we already have and so that may give us some more comp increase and that they can contribute to the store growth but they are in the very early stages of changing visual merchandising and store labor models and shifting hours reallocating store labor hours to sales driving activities and Aaron and that team have just done incredible work we're in the very very early stages of many of these initiatives So, you know, I hear you that people will constantly wonder if you can comp a 7, a 9, or a 17. Given the momentum that we're seeing and given the underlying KPIs in the growth, meaning customer count, customer count across geographies, the strength in the transactions, and second half guidance right now, I think we have plenty of more opportunity for very solid comps. Maybe not a 17, but very solid comps for the balance of the year.

Thanks for that answer.

The next question comes from the line of Brooke Roach with Goldman Sachs. Please proceed with your question.

Good afternoon. Thank you for taking our question. Jim, I was hoping you could reflect on what's working very well in marketing today and what we should expect might change as we look into the back half of the year as you annualize some of these initiatives?

I've been doing. Modernize the creative message. We're mixing up our media mix. We're doing more events. All of those things are adding to the proverbial top of funnel. We've got some pretty exciting things upcoming. In a competitive industry like Offright, sometimes it's hard to give more color because you then end up in one your competitors and what they're doing but suffice it to say i think that we're in the very very early stages of focusing on the ross and dds brands contemporizing them and and having them be get their own sort of followership and you can see it right you can you can follow us on social media, you can see our television spots, and I think it's a very refreshed view of how to go to market in retailing and certainly in off-race retailing. So stay tuned. There's a lot more coming over the next few months from a marketing standpoint.

And then just a quick follow-up. I was hoping you could put a finer point on your expectations for fuel surcharges for the year. Can you quantify the headwind that you're expecting in the back half and what oil price is embedded within the guide?

We try to estimate based on what the...

Great.

Thanks so much. I'll pass it on.

Thank you. And the next question comes from the line of Mark Altschwager with Baird.

Please proceed with your question.

Good afternoon.

Thanks for taking the question. Seems a little silly to ask about consumer headwinds when you reported a 17% comp and you're diving six to seven. But I'm just wondering if you're seeing any indications of shifts in consumer behavior as the inflationary pressures have ticked up. You said strength broad based across regions, but any color on California specifically where gas prices are even higher?

Just to, on your first question, on both customer, we did not see a variation across income levels. actually, all income levels were very strong. California performed in line with the chain during the quarter. I would say on fuel costs generally, historically, it's been hard for us to see any immediate direct correlation between fuel prices and our sales performance. That said, obviously, the potential impact can vary based on the magnitude and how long the increased fuel prices last. I would also add the silver lining for off prices that any uncertainty in the macro environment could lead to customers taking more value when shopping and create closeout opportunities for us for this supply set.

Thank you and follow up for Jim, if you could give us an update on the branded apparel rollout, how broad is the strategy beyond ladies at this point. And with the acceleration you're seeing in new customer acquisition and overall growth, how are you thinking about that balance between the good, better, best, and what's resonating most with that newer customer you're bringing in?

Thanks again.

In ladies and across the entire business, it's in place and has been, I think we've lapped it a few quarters ago. It was a great adjustment, evolved away from some of the really compelling brands and also before I got here so there's a lot of people that are working really hard to put that in place and we can see it in the strength and now the pervasive strength in the ladies business mostly but perhaps it's also a part of the strategy across the board in terms of good, better, best we're hyper focused on that right now because you're right to call out the potential softness and pressure in consumer. And it's all over the news. It's what other retailers are calling out, et cetera. So we have to ensure that we're in stock with sort of the best bargains across price points, but certainly the good price points KPIs are unbelievably strong, right? More customers shopping more frequently and spending more on each trip. So now we're trying to find opportunities to stretch our prices, not on same goods, but on new brands and new goods just to deliver even a broader assortment for our customer out there. Sort of the health of the business and having the macro environment, we want to deliver the absolute best bargains and best values for our customers, particularly those under pressure from the prices of oil, et cetera. But we also have this sort of customer base that seems to be responding across good, better, and best.

Thank you. And the next question comes from Dana Telsey with the Telsey Advisory Group.

Please proceed with your question.

Hi, good afternoon, and congratulations on the very nice results. Given the new customer acquisition that seems to have accelerated and the flywheel of marketing driving new customers, as you think about the sales gains that you had, the new customer acquisition, any different demographic profile, younger, maybe wealthier with a trade down, anything you're seeing there. And then how do you think of the cadence of marketing span as you go through the balance of the year? Is one quarter more allocated than another? And then just lastly, on the New York stores, the 12 that you mentioned, how much higher are they than your plan? What are you seeing that's new or different? and how do you think of Northeast openings as a percentage of the total mix going forward? Thank you.

All right, Anna, thanks for the questions. I'll get started. I think Michael will take the source question. In terms of by customers, one of those report cards that you just, you almost can't believe it, we've had customer growth across, I think, the part of our data, I think the two things that would make our culture to the rest, and certainly the magnitude, I think the number of customers that we're capturing and the year-over-year increase based on what we can see for us and for other players is higher. And then notably, the younger customer, that sort of very difficult to attract 18 to 24-year-old customer. We're just outperforming virtually every other retailer that we can track. So those two pieces, if you're looking for nuances, that younger customer has really gravitated towards us, which has been part of the strategy and is really starting to take root. In terms of the cadence of the spend, firstly, as a rate of sales, we didn't spend any more in the first quarter than we did last year. In fact, we've got a little bit of leverage there. We continuously get questions as, well, should we be investing more? And maybe over time we will. But right now we're certainly driving healthy traffic and comps with the marketing spend that we have. As we look at it by quarter, there might be some small investments here or there in the balance of the year. Nothing that will move the needle in a material way. And clearly, we spend more money in holiday quarter in absolute dollars, but not necessarily as a rate. So that's sort of our view right now from a marketing standpoint. And then from a store's perspective, Michael will take that one.

Dana, I'd be excited about further expansion into the Northeast. I don't want to forget about our existing markets. right now our new store growth, only about 20% of our new store growth is in the newer markets. What I can tell you about the New York stores, as you know, not every store is created equal, but I can give you a benchmark versus our underwriting pro forma, and we far exceeded our expectations of what we thought were needed from an underwriting standpoint. So we're very excited about the expansion. We see we can be very successful. Obviously, the population density in the Northeast is very similar. Actually, more population density than even our oldest market of California. So we'll, the Northeast Real Estate Department has done a nice job of beginning to write leases there. And we'll have more to say as we expand our rollout.

Thank you.

And the next question comes from the line of Simeon Siegel with Guggenheim. Please proceed with your question.

Thanks. Hey, everyone. Really nice job. I'm going to try and sneak three quick ones in if I can.

And what percent of the growth in transactions at this point are coming from new customer acquisition versus that greater frequency of existing that you mentioned, Jim? And then how are you thinking about the timing of CapEx this year? I think Q1 was somewhat similar to last year, but you do have the lift guided for the full year.

And then just taking a quick step back, just any help on long-term EBIT margin opportunity, recognizing the kind of the ongoing strength we're hearing from you?

Maybe even how are you thinking about benchmarking that or analyzing that opportunity? Thanks, guys.

We're on record already saying transactions can change to this 5% unique growth, 4% on

I'll come back to that in a second from a share repurchase program. If we can comp higher than the 3% to 4%, we'd expect...

Makes total sense. Best of luck for the rest of the year.

Thanks so much.

And the next question comes from the line of Christina Katai with Deutsche Bank. Please proceed with your question.

Hey, guys. Great quarter. Congrats. I wanted to ask on cosmetics. Obviously, it was a standout in the quarter. Is that primarily branded availability? Is it consumer trade into prestige, just getting the trend right or increased space allocation? How durable is that?

I think it's several things. One, the team, Michael K. and Stephanie, have just done an unbelievable job of driving that business. That's been a standout for from a category perspective for several quarters now and they've done a really nice job of bringing in new brands and you can see them in the store but there's some new hot kind of exploding brands that are now selling to us which have been fantastic and then thirdly there is a little bit of just an underlying consumer trend there. Korean beauty products is one of them and they've really done a great job being on top of that. But in terms of space allocation, we haven't really changed the space allocation stores for cosmetics in any meaningful way. So I think that that their sales productivity on a first-world basis has just gone up quite nicely.

Great. And if I can just ask a follow-up just very quickly, like you mentioned gaining priority access to deals. Can you talk about how that is showing up at buying costs, IMU, speed-to-floor conversion rates, and then just considering your strong top line, can that advantage expand further? Thank you.

The sentiment in the market, and look, we're one of three big competitors out there. The relationships that the merchants have with the off-price market is critical, and the relationships that the Ross merchandising team has is just remarkable. I marvel as a new entry into this world of how relationship-based it is. Having said that, I think the market is starting to see the transformation of Ross going from a very good company and accelerating from there. It's getting noticed, and I think now when someone has a good deal or more closeouts, we're getting calls, and it's partly because we can take the goods. We have seen some cancellations in the market, some from mainstream retail and some from other off-pricers that we are able to pick up. So last thing I would say is I think our merchants not only have great relationships but tend to be very easy to work with with the market, and that's a philosophy that I inherited from my predecessor, and we absolutely want to continue to do that. We want to be partner-like and low friction. We've opened up new vendors, and we've seen a lot of sort of early calls on opportunistic goods.

And the next question comes from Anisha Sherman with Bernstein. Please proceed with your question.

Thank you, and congrats on the quarter. I have two, please. Jim, you mentioned the word transformation earlier on in your comments. I wanted to ask, you know, over the last year, the companies pursued a lot of new initiatives, marketing, assortments, stores, etc. Do you think there's been a cultural shift in how decisions are being made that is driving this broader set of ideas and initiatives across the company? And then I have a follow-up as well.

Look, I inherited a well-run company with a great culture. I think if there's been any sort of shift in how we operate, it was a little bit of hearkening back to the earlier days in Ross when it was very entrepreneurial and we sort of challenged ourselves to spark more growth, empower people to make quick decisions, be entrepreneurial, pretty heavy focus on risk aversion with a little bit more of a growth orientation and I think internally the team has been very welcoming of that. So yeah I would say if you think of a continuum between playing defense and offense, we've shifted the whole company and the culture a little bit more towards offense, but still always being prudent and not taking undue risk. But again, I just want to say one more time, I was very lucky to be able to inherit a company that was already successful, and we've just been able to layer on some initiatives to augment that growth.

Thank you. And then a follow-up on an earlier comment on double-digit growth in customer counts. Can you give us some color on what that looked like the last two quarters, the last couple quarters, Q3 and Q4? I want to get a sense of has that run rate increased, just to help us think through the back half of the year and, you know, the comp year-over-year growth in the back half.

So it's been building. We definitely didn't get a double-digit growth in customers and then comps lower than double digits, fortunately. But if you were to think of it in the way we think of retail, same-store sales, you would say we've had a customer count growth on a constant basis in each of the last two quarters.

Okay, that's helpful. Thank you.

Thank you.

And the next question comes from the line of Marnie Shapiro with Retail Tracker. Please proceed with your question.

Hey, guys. And, Jim, I love how you sound so pleasantly surprised that the market loves the Roth buyers. That's always been the case. I knew them a long, long time ago, and everyone loved them. So congratulations on that. You've talked about updating and renovating some of the stores. Some of it was just a light touch. if you can just, you know, modernizing them, if you can give an update on how that's going and are those stores outperforming. And then could you just also give us an update? I'm assuming this is true that you'll continue with your buyback through the rest of the year.

Michael, as you said, we've been working on refreshing all stores in the chain. And, again, it was to try to give a more modern look and feel for our customer. And the refresh was mainly new perimeter signing and wayfinding signage, along with addressing cosmetic repairs. We got through about half of the chain last year. We decided to pause for two reasons. First, we wanted to be able to measure the sales impact, and we did see a sales impact in those stores. We saw improvement in customer surveys on the shopping experience. is we decided this year to pause as we're looking to see what kind of things we want to do to the store. And when I say that, it doesn't mean we're going to go back and refresh every single store in the chain, come up with a new performa and have a big capital outlay. But we wanted to pause and see if there's other changes we want to make in the next half of the stores And then also look at new store prototypes, if there's anything we want to change from look and feel or how we're merchandising the store. So that's where we are at this point.

No change there. We remain on track to buy some stock during 2006. 20-6, sorry, so that's unchanged.

Fantastic. Thank you, guys.

Thank you, Marty.

And the next question comes from the line of Dylan Carden with William Blair. Please proceed with your question. thank you I'm curious Jim to the questions on or in and around new customers do you feel that between access to brands some of the new marketing you're doing that you're kind of meaningfully structurally expanding your market or is it just sort of recapturing share within your existing market either going up or down market you mentioned kind of younger customers just for more meaningful change go forward.

That's a very insightful question. Tipping our hand too much, that's absolutely part of the strategy. A bullseye of a core customer, and we have to ensure that we're constantly focused on that in concentric circles around that core. How do we add new customer segments? So that's part of the strategy. and into different pockets of consumer shoppers. And it's, again, it's a very insightful strategic question, Dylan. I appreciate it. And I think you're on the right track there.

Ladies and gentlemen, there are no further questions at this time. I would like to turn the call back over to Jim Conroy for any closing comments.

Well, thank you, everyone, for joining us today.

And we look forward to speaking with you on our next earnings call. and ladies and gentlemen thank you for your participation that does conclude today's teleconference please disconnect your lines and have a wonderful day