ROSS STORES, INC. (ROST) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that ROSS STORES, INC. surfaced in its latest filing.

• More than half of the goods we sell originate from China, and a predominant portion of apparel, shoes, home-related merchandise, and other goods sold is originally manufactured in other countries, even when purchased domestically as excess inventory.
• Increased tariffs imposed on goods imported from China, and changes in tariffs, quotas, trade relationships, or tax provisions could increase cost of goods and effective tax rate.
• All of our stores are located in the United States and its territories; concentration of store locations in California, Texas, and Florida, which together include almost 50% of our stores; approximately 22% of our stores are located in California; approximately half of our distribution center and warehouse capacity is located in California; corporate headquarters is located in California.
• We are involved in employment-related lawsuits, including class/representative actions primarily in California.
• We are subject to continuous examination of tax returns by federal, state, and local tax authorities, and tax authorities may challenge positions we take.