Skip to content

ROST · ROSS STORES, INC.

29 filings

10-K

ROST 10-K Annual Reports

ROSS STORES, INC. - 29 annual reports

Filing record · 2016–202610-K1110-Q338-K97

2026
ROSS STORES, INC. Annual Report, Year Ended Jan 31, 2026
Ross Stores, Inc. (ROST) reported strong performance for the fiscal year ended January 31, 2026, with total sales reaching $22.75 billion, an 8% increase year-over-year. This growth was primarily driven by a 5% increase in comparable store sales, supported by a 3% rise in average transaction value (basket) and a 2% increase in traffic. The company's off-price model continues to resonate with value-conscious consumers, as evidenced by consistent growth across its two brands, Ross Dress for Less and dd's DISCOUNTS. Profitability remains robust, with operating income at $2.71 billion and net income at $2.15 billion, resulting in diluted earnings per share (EPS) of $6.61. While operating margin saw a slight decrease to 11.9% from 12.2% in the prior year, this was largely attributed to increased distribution and tariff-related costs. The company demonstrated a strong commitment to returning value to shareholders through consistent dividend payments and significant share repurchases, with a new $2.55 billion repurchase program announced. Ross Stores is strategically expanding its store footprint, planning to open approximately 110 new stores in fiscal year 2026, signaling continued confidence in its growth trajectory.
Mar 31, 2026
2025
ROSS STORES, INC. Annual Report, Year Ended Feb 1, 2025
Ross Stores, Inc. (ROST) operates a robust off-price retail model with two primary brands: Ross Dress for Less and dd's DISCOUNTS. The company reported increased sales for fiscal year 2024, driven by comparable store sales growth and the opening of new locations. Management highlights the company's flexible business model, which they believe positions it well to navigate economic uncertainties and capitalize on opportunities to offer compelling value to consumers. Strategic priorities include maintaining a strong assortment of recognizable brands at significant discounts, localized merchandising, an engaging store experience, and disciplined real estate growth. The company also continues to invest in its information systems and supply chain to support future growth and operational efficiency. Financially, Ross Stores demonstrated solid performance with operating income as a percentage of sales improving year-over-year. The company actively returned capital to shareholders through share repurchases and dividends, supported by strong operating cash flows. Significant capital expenditures are planned for fiscal year 2025, primarily focused on new store development and supply chain enhancements. The company maintains a strong liquidity position with substantial cash balances and an available revolving credit facility, indicating financial stability to support its strategic initiatives and return capital to investors.
Apr 1, 2025
2024
ROSS STORES, INC. Annual Report, Year Ended Feb 3, 2024
Ross Stores, Inc. (ROST) operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS banners. For the fiscal year ended February 3, 2024, the company reported strong sales growth of 9.0%, reaching $20.4 billion. This growth was driven by a 5% increase in comparable store sales and the addition of 94 net new stores, alongside the benefit of a 53-week fiscal year. Net earnings increased to $1.87 billion, with diluted earnings per share rising to $5.56 from $4.38 in the prior year. The company continues to execute its strategy of offering value and convenience, focusing on opportunistic buying and efficient operations. Management expresses confidence in continued market share gains despite ongoing macroeconomic uncertainties and expects to open approximately 90 new stores in fiscal year 2024, supported by robust operating cash flow and a strong liquidity position. The company maintained a solid financial foundation, with total assets growing to $14.3 billion and substantial cash and cash equivalents of $4.9 billion. Ross Stores also demonstrated a commitment to returning value to shareholders through share repurchases, totaling $950 million in fiscal year 2023 under its $1.9 billion program, and dividend payments of $454.8 million. A new $2.1 billion share repurchase program was approved for fiscal years 2024-2025, signaling continued confidence in the company's financial outlook and commitment to shareholder returns.
Apr 2, 2024
2023
ROSS STORES, INC. Annual Report, Year Ended Jan 28, 2023
Ross Stores, Inc. (ROST) operates a successful off-price retail model with two distinct brands: Ross Dress for Less and dd's DISCOUNTS. The company continues to demonstrate resilience and strategic focus despite navigating a challenging macroeconomic environment characterized by inflation and shifting consumer spending habits. With a robust store base and a commitment to value, Ross Stores is well-positioned to capitalize on the increasing consumer demand for bargains. The company's operational efficiency, effective merchandising strategies, and ongoing investment in store growth and technology highlight its commitment to long-term value creation for shareholders. Investors should note the company's consistent store expansion, share repurchase programs, and dividend payments as indicators of financial health and shareholder return initiatives.
Mar 28, 2023
2022
ROSS STORES, INC. Annual Report, Year Ended Jan 29, 2022
Ross Stores, Inc. (ROST) reported solid performance in its fiscal year ended January 29, 2022, following a challenging prior year impacted by COVID-19. Sales increased significantly by 50.9% year-over-year, driven by the full operational capacity of all stores and a rebound in consumer demand, benefiting from government stimulus and reduced pandemic restrictions. The company saw a substantial recovery in net earnings, which rose to $1.72 billion from $85.4 million in the prior year, reflecting strong sales execution and improved operational efficiency. Looking ahead, Ross Stores plans to accelerate its store expansion strategy, anticipating an increase in new store openings. The company highlighted its ability to navigate supply chain congestion and inflationary pressures, though acknowledged these as ongoing risks. Management expressed confidence in the off-price model's appeal to value-conscious consumers and the company's position for continued market share gains. The company also continued its commitment to returning capital to shareholders through dividends and substantial share repurchases.
Mar 29, 2022
2021
ROSS STORES, INC. Annual Report, Year Ended Jan 30, 2021
Ross Stores, Inc. (ROST) reported its fiscal year 2020 results, which concluded on January 30, 2021. The company experienced a significant sales decline of 21.9% due to the unprecedented impact of the COVID-19 pandemic, which led to temporary store closures, mandated occupancy restrictions, and reduced operating hours. Despite these challenges, the company demonstrated resilience, with core business results improving in the second half of the fiscal year, aided by pent-up consumer demand and aggressive markdowns. Ross Stores ended the fiscal year with strong liquidity, holding over $5.6 billion in cash and available credit. The company maintained its strategic focus on value and convenience for its off-price retail model, operating 1,585 Ross Dress for Less stores and 274 dd's DISCOUNTS stores. While fiscal year 2020 saw a reduction in new store openings compared to prior years, the company is planning for continued expansion in fiscal year 2021, leveraging its market penetration strategy. Despite the negative impact of COVID-19 on earnings and sales in fiscal 2020, the company has resumed its quarterly dividend payments and maintains a strong financial position to navigate ongoing economic uncertainties.
Mar 30, 2021
2020
ROSS STORES, INC. Annual Report, Year Ended Feb 1, 2020
Ross Stores, Inc. (ROST) reported its fiscal year 2019 results in this 10-K filing, which concluded on January 31, 2020. The company operates two off-price retail chains, Ross Dress for Less and dd's DISCOUNTS, offering branded apparel and home fashions at significant discounts. The filing highlights a strong financial performance in fiscal 2019, with notable sales growth driven by both new store openings and comparable store sales increases. However, the report also contains a significant cautionary note regarding the onset of the COVID-19 pandemic. The company details the immediate impacts, including temporary store closures starting in March 2020 and the subsequent uncertainty surrounding future operations. Despite these challenges, Ross Stores continued its strategic store expansion and maintained a solid financial position, though future outlook is heavily impacted by the pandemic's evolving effects.
Mar 31, 2020
2019
ROSS STORES, INC. Annual Report, Year Ended Feb 2, 2019
Ross Stores, Inc. (ROST) reported its fiscal year 2018 results, ending February 2, 2019. The company operates two off-price retail chains, Ross Dress for Less and dd's DISCOUNTS, and continues to demonstrate strong performance driven by its value-oriented business model. The off-price sector benefits from consistent consumer demand for brand-name merchandise at discounted prices, a trend that remains robust. Key financial highlights include continued sales growth and healthy earnings. The company's strategic focus on opportunistic purchasing, efficient inventory management, and maintaining low operating costs has enabled it to navigate a competitive retail landscape. Ross Stores' expansion strategy, focusing on opening new locations in existing and new markets, along with prudent capital allocation, including stock repurchases and dividends, signals confidence in its future prospects. Investors can note the company's commitment to returning value to shareholders while investing in growth and operational improvements.
Apr 2, 2019
2018
ROSS STORES, INC. Annual Report, Year Ended Feb 3, 2018
Ross Stores, Inc. (ROST) reported its fiscal year 2017 results in this 10-K filing, highlighting continued growth and operational efficiency. The company operates two distinct off-price retail brands: Ross Dress for Less, targeting middle-income households, and dd's DISCOUNTS, catering to more moderate-income consumers. The off-price model, which emphasizes offering first-quality, in-season, brand-name merchandise at discounts of 20-60% off department store prices, continues to resonate with value-conscious shoppers. Financially, the company demonstrated strong sales growth and maintained healthy margins. Key to its strategy is opportunistic purchasing and efficient inventory management, including significant use of packaway inventory. Ross Stores also actively returns capital to shareholders through share repurchases and dividends, indicating confidence in its financial position and future prospects. The company's risk factors primarily revolve around intense competition, changing consumer preferences, and macroeconomic conditions, but its established off-price model and strategic store growth appear to position it favorably within the retail landscape.
Apr 3, 2018
2017
ROSS STORES, INC. Annual Report, Year Ended Jan 28, 2017
Ross Stores, Inc. (ROST) reported strong performance in its fiscal year 2016, demonstrating consistent growth in sales and net earnings. The company's off-price retail model, operating under the Ross Dress for Less® and dd's DISCOUNTS® brands, continues to resonate with value-conscious consumers. This fiscal year saw a notable increase in sales, driven by both new store openings and a healthy comparable store sales increase, indicating effective operational execution and strong customer demand for branded merchandise at significant discounts. Financially, the company maintained robust profitability, with net earnings as a percentage of sales showing improvement. The company also demonstrated a strong commitment to returning value to shareholders through substantial stock repurchases and consistent dividend payments, supported by healthy cash flows from operations. The strategic expansion of its store base and focus on optimizing merchandising and operational efficiencies position Ross Stores for continued success in the competitive retail landscape.
Mar 28, 2017
2016
ROSS STORES, INC. Annual Report, Year Ended Jan 30, 2016
Ross Stores, Inc. (ROST) reported strong performance for the fiscal year ending January 30, 2016, demonstrating continued growth in sales and net earnings. The company operates two off-price retail chains, Ross Dress for Less and dd's DISCOUNTS, focusing on offering branded apparel and home fashions at significant discounts. This business model resonated well with value-conscious consumers, driving an 8.1% increase in sales to $11.94 billion and a 10.4% increase in net earnings to $1.02 billion. Key to the company's success is its effective off-price buying strategy, which allows it to procure merchandise opportunistically and pass savings onto customers. The company expanded its store base by opening 84 net new stores, contributing to sales growth alongside a healthy 4% increase in comparable store sales. Financially, ROST maintained a strong balance sheet with robust operating cash flow and returned capital to shareholders through dividends and significant stock repurchases. Management expressed confidence in its strategy and outlook, anticipating continued growth and profitability.
Mar 29, 2016
2015
ROSS STORES, INC. Annual Report, Year Ended Jan 31, 2015
Ross Stores, Inc. (ROST) presented its 2014 fiscal year-end 10-K filing on March 31, 2015, highlighting a strong performance characterized by consistent sales growth and effective cost management. The company operates two distinct off-price retail brands, Ross Dress for Less and dd's DISCOUNTS, catering to value-conscious consumers. Ross Dress for Less, the larger brand, focuses on middle-income households, while dd's DISCOUNTS targets a more moderate income demographic. The company's strategy centers on offering first-quality, in-season, name-brand merchandise at significant discounts, achieved through opportunistic purchasing. This approach, combined with a focus on maintaining an organized and appealing store environment, has driven both store count expansion and comparable store sales increases. Financially, ROST demonstrated robust operating cash flow and profitability, supported by efficient inventory management and disciplined expense control. The company also continued its commitment to returning value to shareholders through share repurchases and dividend payments.
Mar 31, 2015
2014
ROSS STORES, INC. Annual Report, Year Ended Feb 1, 2014
Ross Stores, Inc. (ROST) presents its 2014 10-K filing, detailing a strong performance driven by its off-price retail model. The company operates two distinct brands, Ross Dress for Less and dd's DISCOUNTS, catering to value-conscious consumers across various income levels. The filing highlights robust sales growth, an expanding store footprint, and effective inventory management, particularly through opportunistic 'packaway' purchases. Financially, Ross Stores demonstrates consistent revenue increases and healthy profitability, with a focus on maintaining operating costs while investing in infrastructure such as distribution centers and information systems. The company also emphasizes its commitment to shareholder returns through stock repurchases and increasing dividends. Key risks identified include competitive pressures, changes in consumer spending, and macroeconomic factors, but the company appears well-positioned to navigate these challenges through its established off-price strategy and operational efficiency.
Apr 1, 2014
2013
ROSS STORES, INC. Annual Report, Year Ended Feb 2, 2013
Ross Stores, Inc. (ROST) reported strong performance in its fiscal year ending February 2, 2013, characterized by consistent sales growth and expanding store count. The company operates two distinct off-price retail chains: Ross Dress for Less, targeting middle-income households, and dd's DISCOUNTS, focusing on more moderate-income consumers. The off-price model, emphasizing value and brand names at significant discounts, continues to resonate with consumers, as evidenced by the company's ability to capture market share gains within the broader apparel and home fashion retail sector. This filing highlights the company's strategic focus on efficient operations, disciplined real estate growth, and robust inventory management, all contributing to solid financial results and a positive outlook.
Apr 2, 2013
2012
ROSS STORES, INC. Annual Report, Year Ended Jan 28, 2012
Ross Stores, Inc. (ROST) reported a strong fiscal year ending January 28, 2012, demonstrating consistent growth and outperformance compared to broader market indices. The company experienced a 9.4% increase in sales, reaching $8.61 billion, driven by both new store openings and a healthy 5% comparable store sales growth. Profitability also saw significant improvement, with net earnings increasing by approximately 18% to $657.2 million, resulting in diluted earnings per share of $2.86, up from $2.31 in the prior year. This growth was fueled by improved gross margins through better cost of goods sold management and operating expense leverage. For investors, Ross Stores continues to return value through a combination of share repurchases and growing dividends. The company repurchased $450 million of its stock and declared a quarterly dividend of $0.14 per share, indicating a commitment to shareholder returns. The off-price retail model continues to resonate with consumers seeking value, positioning Ross Stores favorably within the retail landscape. The company's strategic focus on efficient execution, expense control, and opportunistic inventory management appears to be yielding positive financial results.
Mar 27, 2012
2011
ROSS STORES, INC. Annual Report, Year Ended Jan 29, 2011
Ross Stores (ROST) closed fiscal 2010 (ended January 29, 2011) with a strong year. Sales rose 9.5% to $7.87 billion, driven by 50 net new stores (to 1,055 total) and a 5% comparable store sales increase. Gross margin expanded roughly 130 basis points, mainly from a 80 basis point improvement in merchandise margin, and net earnings grew about 25% to $554.8 million, or $4.63 diluted EPS (up 31% year over year). Net earnings margin reached 7.1%, up from 6.2%, and return on average equity was 45%. Cash generation was solid but softer than the prior year. Operating cash flow fell to $673.0 million from $888.4 million, primarily because the company bought more packaway inventory at year-end; packaway now represents 47% of total inventory, up from 38%, and accounts payable leverage declined to 71%. Ross returned capital aggressively: it repurchased $375 million of stock, paid $77 million in dividends, and the board raised the quarterly dividend to $0.22 (from $0.16), while approving a new two-year $900 million buyback for fiscal 2011 and 2012. Cash ended at $834 million with no borrowings under its $600 million revolver, which was refinanced in March 2011. Looking ahead, management plans to reduce average store inventory levels, keep operating expenses tightly controlled, and spend $380 to $390 million on capital expenditures in 2011, largely for new stores and dd's DISCOUNTS expansion. Key risks include concentration in California (26% of stores, plus headquarters and two distribution centers), sensitivity to consumer spending and macroeconomic conditions, ongoing wage-and-hour class action litigation, and reliance on the availability of discounted brand-name merchandise. Management also notes it cannot guarantee that current margin and sales gains will continue.
Mar 29, 2011
2010
ROSS STORES, INC. Annual Report, Year Ended Jan 30, 2010
Ross Stores, Inc. (ROST) reported strong performance in its 2010 10-K filing, demonstrating robust sales growth and profitability, even amidst a challenging macroeconomic environment. The company successfully navigated the economic pressures by adhering to its core off-price retail strategy, focusing on value-conscious consumers seeking name-brand apparel and home accessories at significant discounts. Its diversified store base, comprising both the larger Ross Dress for Less format and the smaller dd's DISCOUNTS, contributed to this success by catering to different income demographics. Key to its operational efficiency is a well-honed merchandising and purchasing strategy. Ross leverages opportunistic buying, such as close-outs and packaway inventory, to secure desirable merchandise at lower costs, which it then passes on to customers. Investments in information systems to enhance localized merchandising and a continued focus on operational efficiency, including cost management, further bolster its competitive advantage and financial health. The company's consistent store growth and solid financial position, supported by strong operating cash flows and ongoing share repurchase programs, position it favorably for continued success.
Mar 30, 2010
2009
ROSS STORES, INC. Annual Report, Year Ended Jan 31, 2009
Ross Stores (ROST) closed fiscal 2008 (year ended January 31, 2009) with record results despite a deteriorating macro backdrop. Sales rose 8.6% to $6.49 billion, driven by a net addition of 66 stores (956 year-end, 904 Ross and 52 dd's DISCOUNTS) and a 2% comparable store sales increase. Gross margin improvement was the main profit driver: cost of goods sold fell to 76.4% of sales from 77.3%, while SG&A rose to 16.0% from 15.7%. Net earnings grew about 17% to $305.4 million, and diluted EPS rose 23% to $2.33, helped by a roughly 4% reduction in diluted share count from buybacks. Return on average equity was 31%. Balance sheet and cash flow were strong. Operating cash flow rose to $583.4 million from $353.6 million, largely due to inventory reduction: merchandise inventory fell 14% to $881 million. Cash and equivalents increased to $321 million, the company has no borrowings under its $600 million revolver, and it carries $150 million of senior notes. Management repurchased $300 million of stock in fiscal 2008 and has a remaining $300 million to execute in fiscal 2009 under its $600 million two-year program. The quarterly dividend was raised to $0.11 per share. Management's outlook is cautious. It expects macroeconomic pressure to persist through 2009 and plans to keep tight control over inventory and operating expenses. Capital spending is forecast at about $190 million in 2009, down from $224 million. The company also flagged risks including concentration in California (26% of stores and its headquarters and two distribution centers), wage-and-hour class action litigation, and the planned rollout of merchandise planning systems through fiscal 2010. Its effective tax rate is expected to be 38% to 40%.
Mar 31, 2009
2008
ROSS STORES, INC. Annual Report, Year Ended Feb 2, 2008
Ross Stores (ROST) closed fiscal 2007 (ended February 2, 2008) with sales of $5.98 billion, up 7.3% year over year, and net earnings of $261.1 million, up 8.0%. Diluted EPS rose 12% to $1.90, helped by a 3% reduction in weighted average diluted shares from buybacks. Comparable store sales grew only 1%, down from 4% in fiscal 2006, so the growth came mainly from a net 93 new stores (890 stores at year-end, versus 797). Gross margin improved about 20 basis points, mostly from lower markdowns and shortage, while SG&A deleveraged about 15 basis points on store operating costs and minimum wage increases. The balance sheet remains conservative. Long-term debt is $150 million in senior notes, the $600 million revolver is undrawn, and stockholders' equity reached $970.6 million. Operating cash flow fell to $353.6 million from $506.9 million, largely because of accounts payable timing tied to the 53-week fiscal 2006, and cash and equivalents declined $109.8 million. Management projects roughly $250 million in 2008 capital spending and expects an effective tax rate of 38% to 40%. The board also approved a new two-year $600 million buyback for fiscal 2008 and 2009 and raised the quarterly dividend to $0.095 from $0.075. For investors, the key questions are whether the store-growth engine can keep delivering sales gains with comparable sales growth slowing to 1%, and whether margins can hold given wage pressure and the company's concentration in California, where its headquarters, two distribution centers, and 26% of its stores are located. The filing itself flags these risks, along with the potential for consumer spending to weaken amid mortgage credit uncertainty and higher fuel costs.
Apr 1, 2008
2007
ROSS STORES, INC. Annual Report, Year Ended Feb 3, 2007
Ross Stores (ROST) closed fiscal 2006 (53 weeks ended February 3, 2007) with record results: sales rose 12.7% to $5.57 billion, driven by 63 net new stores (797 total, up 9%) and a 4% comparable store sales increase. Net earnings grew about 21% to $241.6 million, and diluted EPS rose 25% to $1.70, helped by a roughly 3% reduction in diluted share count from buybacks. Net margin improved to 4.3% from 4.0%, mainly because cost of goods sold fell 40 basis points as a percentage of sales on lower markdowns and shortage and better distribution costs. SG&A held flat at 15.5% of sales. Balance sheet and cash flow strengthened. Operating cash flow reached $506.9 million, up from $375.2 million, and the company ended the year with $367.4 million in cash and $1.05 billion in merchandise inventory. Ross issued $150 million of unsecured senior notes (6.38% and 6.53%) and repaid its $50 million term loan. It also repurchased $200 million of stock and paid dividends, with the quarterly dividend raised to $0.075. Management guides to about $290 million in 2007 capital spending, an effective tax rate of 38% to 40%, and about 40 Albertsons sites added to the 2007 expansion program. Key risks include heavy concentration in California (28% of stores, plus the headquarters and two distribution centers), exposure to consumer spending and fuel costs, rising labor-related litigation (assistant store manager misclassification and meal/rest break class actions), and the expense of new store and distribution investments. The company also expects a cumulative tax reserve charge of $6 to $8 million from FIN 48 adoption. Management cautions that prior growth does not guarantee continued sales or earnings growth.
Apr 3, 2007
2006
ROSS STORES, INC. Annual Report, Year Ended Jan 28, 2006
Ross Stores, Inc.'s 2006 10-K filing highlights a company with a robust off-price retail model focused on value-conscious consumers. The company operates two distinct chains: Ross Dress for Less, targeting middle-income households, and dd's DISCOUNTS, aimed at lower-income households. Ross Stores emphasizes offering brand-name and designer merchandise at significant discounts (20-60% below department store prices) through opportunistic purchasing and efficient operations. The company demonstrates consistent growth in store count and sales, reflecting strong demand for its value proposition. Key strategic objectives include maintaining recognizable brands at low prices, tailoring merchandise to regional preferences, and optimizing store growth. Investments in information systems and operational efficiencies are ongoing to further enhance customer experience and profitability. The company also actively engages in share repurchases and dividend payments, indicating a commitment to returning value to shareholders.
Apr 12, 2006
2005
ROSS STORES, INC. Annual Report, Year Ended Jan 29, 2005
Ross Stores, Inc. reported its fiscal year 2004 results, ending January 29, 2005, highlighting continued expansion and a new off-price concept, dd's DISCOUNTS. The company saw an 8% increase in sales year-over-year, reaching $4.24 billion. This growth was primarily driven by the net opening of 81 new stores, expanding the total store count to 649. Despite overall sales growth, comparable store sales experienced a slight decrease of 1%, which management attributed in part to challenges with a new Core Merchandising System implemented during the year. The company also announced a restatement of prior period financial statements related to accounting for operating leases, specifically tenant improvement allowances and rent holidays, which impacted prior years' earnings but did not materially affect the current fiscal year's results. Financial position remained solid with a strong working capital position and a significant stock repurchase program in place.
Apr 14, 2005
2004
ROSS STORES, INC. Annual Report, Year Ended Jan 31, 2004
Ross Stores (ROST) closed fiscal 2003 (year ended January 31, 2004) with a strong profit year driven by store growth and disciplined cost control. Sales rose 11% to $3.92 billion, comparable store sales grew only 1%, and 66 new stores were opened, bringing the chain to 568 stores across 25 states and Guam. Net earnings grew about 13% to $228.1 million, and diluted EPS rose 17% to $1.47 (post two-for-one split). Gross margin (cost of goods sold at 74.4% of sales) held flat, while SG&A leverage improved slightly to 16.0% of sales, lifting the net margin to 5.8%. The balance sheet is solid and liquidity is strong. Cash rose to $201.5 million, stockholders' equity reached $755.4 million, and the company carried only $50 million of long-term debt. The company repurchased $150 million of stock in each of 2003 and 2002 and approved a new $350 million two-year buyback for 2004-2005, alongside a dividend increase to $.0425 per quarter. Working capital improved to $409 million, although accounts payable leverage slipped from 55% to 53%, which pressured operating cash flow (down to $315 million from $349 million). The key forward-looking risks for investors are the company's heavy reliance on California (32% of stores plus its headquarters and key distribution center), a possible non-cash write-down of the Newark, CA headquarters and distribution center (book value about $35 million) given a depressed Bay Area real estate market, rising lease and synthetic lease obligations, and the planned launch of dd's DISCOUNTS, a lower-income-focused concept, in the second half of 2004. Management targets over 1,000 stores and more than $7 billion in revenue by fiscal 2008, but notes that comparable store growth slowed sharply to 1% in 2003 from 7% in 2002.
Apr 15, 2004
2003
ROSS STORES, INC. Annual Report, Year Ended Feb 1, 2003
Ross Stores (ROST) reported a strong fiscal 2002 (year ended February 1, 2003). Sales rose 18% to $3.53 billion, driven by a 7% comparable store sales increase and the opening of 60 new stores, bringing the chain to 507 stores across 23 states and Guam. Gross margin improvement came from higher leverage on buying, distribution and occupancy costs, and net earnings rose about 30% to $201.2 million. Diluted EPS increased 32% to $2.52, aided by a 2% reduction in weighted average diluted shares from buybacks. Net earnings as a percent of sales expanded to 5.7% from 5.2%. Cash generation and the balance sheet were solid. Operating cash flow reached $332.4 million, cash rose to $150.6 million, and the company had no borrowings under its $350 million revolver. Ross repurchased $150 million of stock in 2002 and plans to complete the remaining $150 million of its two-year program in 2003. Management expects roughly $150 million of capital expenditures in 2003 to open about 66 stores. Long-term debt is limited to a $25 million term loan, with the remaining $25 million drawn in February 2003. The key watch items for investors are the off-track real estate and distribution commitments and the accounting change they bring. The company uses synthetic leases to finance its Fort Mill, South Carolina distribution center ($87.3 million) and its Perris, California distribution center ($80 million). Under FIN 46, the Perris facility would likely have to be consolidated starting in Q3 2003, adding roughly $80 million of property and debt. The company also notes that about 35% of its stores and its headquarters are in California, creating geographic concentration risk, and that there is no assurance the growth trajectory will continue.
Apr 23, 2003
2002
ROSS STORES, INC. Annual Report, Year Ended Feb 2, 2002
Ross Stores, Inc. (ROST) reported its fiscal year results for the period ending February 2, 2002. The company, operating an off-price retail chain, demonstrated consistent sales growth, driven by both comparable store sales increases and strategic store expansion. Key to its strategy is offering branded merchandise at significant discounts, appealing to value-conscious consumers. The company maintained a strong financial position, with healthy sales growth and robust net earnings. Significant investments were made in expanding its store base and improving operational infrastructure, including new distribution centers. Ross Stores also continued its commitment to returning capital to shareholders through dividends and a substantial stock repurchase program.
Apr 25, 2002
2001
ROSS STORES, INC. Annual Report, Year Ended Feb 3, 2001
Ross Stores, Inc. (ROST) reported its fiscal year 2000 results, which concluded on February 3, 2001. The company, a prominent off-price retailer, operates 409 stores and focuses on offering branded apparel and home accessories at discounts of 20-60% below traditional retail prices. For the fiscal year, Ross Stores demonstrated solid sales growth, with total sales reaching $2.71 billion, an increase of 10% over the prior year. While comparable store sales growth moderated to 1%, the company's strategic expansion continued with the opening of 34 new stores. Financially, the company maintained healthy profitability with net earnings of $151.8 million. Diluted earnings per share stood at $1.82. Ross Stores also actively returned capital to shareholders through dividends and share repurchases, highlighting a commitment to shareholder value. The company is investing in its future through infrastructure improvements, including plans for a new distribution center, and by enhancing its merchandise buying and allocation systems to further optimize its offerings and margins.
Apr 27, 2001
2000
ROSS STORES, INC. Annual Report, Year Ended Jan 29, 2000
Ross Stores (ROST) closed fiscal 1999 (ended January 29, 2000) with record results: sales rose 13% to $2.47 billion, driven by 34 net new stores (378 total, up from 349) and a 6% comparable store sales increase. Net earnings grew 12% to $150.1 million, and diluted EPS rose 17% to $1.64 (or $1.71 excluding the $9.0 million, $0.06-per-share California overtime litigation charge). Gross margin improved, with cost of goods sold and occupancy falling to 69.0% of sales from 69.4%, aided by more opportunistic buying, higher initial markups, and lower markdowns. Return on average equity held at a strong 33%. Operating expenses rose modestly as a share of sales, mainly from benefits, credit card fees, and incentive compensation. The balance sheet remains conservative, with zero debt, $79.3 million in cash, and $273 million in net property. Operating cash flow was $183.4 million, slightly down from $200.5 million, largely because accounts payable grew less than inventory. Management returned substantial capital to shareholders: it repurchased $120 million of stock in 1999, raised the quarterly dividend 15% to $0.0375, and authorized a new $300 million, two-year buyback program. Management expects about 30 net new stores in 2000 and 35 to 40 in 2001, and an effective tax rate near 39%. Investors should weigh several risks. Ross is heavily concentrated in California, which accounts for 42% of stores, the corporate headquarters, and one of its distribution centers. The company also faces intensifying off-price and department store competition, a seasonal business in which the fourth quarter generates a significant share of profit, and the potential for higher-than-expected settlement costs in the California overtime class action. The filing also notes that a new distribution center is planned for 2002.
Apr 28, 2000
1996
ROSS STORES, INC. Annual Report, Year Ended Feb 3, 1996
Ross Stores, Inc. (ROST) reported fiscal 1995 (53-week year ended February 3, 1996) net earnings of $43.3 million, or $1.73 per fully-diluted share, up from $36.8 million, or $1.49, in fiscal 1994. Sales rose 13% to $1.426 billion, driven by 21 new stores (292 at year-end, up from 275), a 2% comparable store sales increase, and the extra 53rd week. Gross margin after occupancy improved modestly, with cost of goods sold and occupancy falling to 72.3% of sales from 72.9%, which management attributed to more opportunistic and in-season buying. Selling, general and administrative expenses held at 20.5% of sales, and interest expense fell to $2.7 million as the company paid down all bank borrowings by year-end. The balance sheet strengthened considerably. Total debt dropped to $9.8 million (3% of total capitalization) from $46.1 million, inventory rose to $296 million, and stockholders' equity grew to $291.5 million, or $11.85 per share. Management cited improved inventory turnover and vendor terms as key drivers of the stronger cash flow, with operating cash flow reaching $88 million versus $45 million the prior year. The board raised the quarterly dividend 17% to $0.07 and authorized an additional two million share repurchase, bringing the total authorization to five million shares. Investors should weigh several risks. The company is heavily concentrated in California, which houses its headquarters, one of its two distribution centers, and 46% of its stores. The filing also flags intensifying off-price competition following TJX's acquisition of Marshalls, persistent apparel industry over-capacity, and a warehouse network that is approaching capacity. Management acknowledged that the 1995 margin improvement may not persist, and the business remains highly seasonal, with the fourth quarter generating a significant share of annual profit.
Apr 29, 1996
1994
ROSS STORES, INC. Annual Report, Year Ended Jan 29, 1994
Ross Stores, Inc. (ROST) reported fiscal 1993 (year ended January 29, 1994) sales of $1.122 billion, up 7.6% from $1.043 billion, driven by a larger store base rather than same-store growth. Comparable store sales declined 1%, the first decline in the period shown, as the company's off-price value advantage narrowed amid a more competitive apparel retail environment. Net earnings fell 14% to $29.3 million, or $1.14 per fully-diluted share, from $34.0 million, or $1.30 a year earlier. Margin pressure was concentrated in cost of goods sold and occupancy, which rose to 72.6% of sales from 71.2%, reflecting heavier markdowns and price-point pressure. General, selling and administrative expenses improved slightly to 21.0% of sales from 21.3%. The balance sheet remains conservative. Stockholders' equity rose to $228.2 million, and total debt was $33.3 million, or 13% of total capitalization, against $125 million of working capital and a 1.8:1 current ratio. Management repurchased 1.2 million shares at an average of $14.89 and initiated a quarterly dividend of $0.05 per share. A two million share repurchase plan is still in progress. The company plans to open 20 to 25 stores annually through 1995 and expects to fund growth primarily from operating cash flow and existing credit facilities. Investors should weigh several items. Management says it will not rely on gross margin expansion in 1994, instead targeting sales growth and expense leverage, and will deepen discounts on key brands to improve sales per square foot. A March 1994 roof collapse at the Carlisle, Pennsylvania distribution center disrupted East Coast flows, and the company expects normal capacity by June 1994 and says it is fully insured. The company also disclosed a $23 million term loan due November 1994 that it intends to refinance. Fourth-quarter results drive a large share of annual profit, so seasonal performance is a key sensitivity.
Apr 28, 1994