What was Ross Stores' revenue and net income growth in fiscal year 2006?

Ross Stores reported a 12.7% increase in sales, reaching $5.57 billion, and a 21% increase in net earnings, amounting to $241.6 million for the fiscal year ending February 3, 2007.

How did the company manage its expenses relative to sales?

The company maintained strong operational efficiency, with cost of goods sold and selling, general, and administrative (SG&A) expenses remaining stable at 77.5% and 15.5% of sales, respectively. This demonstrates effective cost management despite sales growth and new store openings.

What is the company's strategy for growth?

Ross Stores' primary strategy is to refine its off-price business model and steadily expand its store base, opening 66 net new stores in fiscal year 2006. They also focus on leveraging value to consumers for apparel and home fashions.

How is the company returning value to shareholders?

Ross Stores demonstrated a commitment to shareholder returns by increasing its quarterly cash dividend to $0.075 per share and actively repurchasing its stock. In fiscal year 2006, the company repurchased $200 million of its common stock under a $400 million repurchase program.

ROST 10-K FY2007 Annual Report — Revenue, Net Income, EPS

Summary

Ross Stores, Inc. reported strong performance in its fiscal year ending February 3, 2007, with a significant increase in sales and net earnings, driven by store expansion and comparable store sales growth. The company demonstrated robust operational efficiency, with cost of goods sold and SG&A expenses as a percentage of sales remaining stable or improving. Investments in new stores and distribution centers are being strategically managed, supported by healthy operating cash flows and a revolving credit facility. The company also continued its commitment to shareholder returns through increased dividends and a substantial stock repurchase program, reflecting confidence in its ongoing growth strategy and financial stability.

Key Highlights

1Sales increased by 12.7% to $5.57 billion, demonstrating strong top-line growth.
2Net earnings rose significantly by 21% to $241.6 million, with diluted EPS increasing to $1.70 from $1.36.
3The company opened 66 net new stores, expanding its retail footprint to 797 locations.
4Comparable store sales increased by 4%, indicating healthy performance in existing stores.
5The company repurchased $200 million in common stock under its share repurchase program.
6Cash dividends per share increased to $0.255 for fiscal year 2006, up from $0.220 in fiscal year 2005.

ROSS STORES, INC. Annual Report, Year Ended Feb 3, 2007

Summary

Key Highlights

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