Summary
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.
Financial Highlights
28 data points| Revenue | $18.92B |
| Cost of Revenue | $13.71B |
| Gross Profit | $5.21B |
| SG&A Expenses | $2.87B |
| Operating Expenses | $16.66B |
| Net Income | $1.72B |
| EPS (Basic) | $4.90 |
| EPS (Diluted) | $4.87 |
| Shares Outstanding (Basic) | 351.50M |
| Shares Outstanding (Diluted) | 353.73M |
Key Highlights
- 1Sales surged by 50.9% to $18.9 billion in fiscal 2021, a significant recovery from the pandemic-impacted fiscal 2020, and also exceeded fiscal 2019 sales levels.
- 2Net earnings dramatically increased to $1.72 billion ($4.87 per diluted share) from $85.4 million ($0.24 per diluted share) in fiscal 2020, demonstrating a strong profit recovery.
- 3Comparable store sales increased by 13% in fiscal 2021 compared to fiscal 2019, indicating a healthy rebound in customer traffic and purchasing at existing locations.
- 4The company plans to increase its pace of new store openings to approximately 100 stores annually in fiscal 2022 and anticipates exceeding this pace in the longer term.
- 5Ross Stores maintained a strong liquidity position, ending fiscal 2021 with $4.9 billion in cash and cash equivalents, supported by robust operating cash flows.
- 6The company demonstrated a commitment to shareholder returns, with a quarterly cash dividend of $0.310 declared and a new two-year stock repurchase program authorized for up to $1.9 billion.
- 7Despite ongoing supply chain congestion and inflationary pressures, Ross Stores highlighted its effective merchandising and operational strategies to manage costs and deliver value.