Summary
Ross Stores, Inc. reported strong sales growth for the nine months ending October 29, 2005, with total sales increasing by 16.7% to $3.53 billion, driven by both new store openings and a 6% comparable store sales increase. Net earnings for the nine-month period were $128.7 million, a slight increase from the prior year, and diluted EPS rose to $0.87. The company continues its aggressive store expansion, ending the period with 735 stores, an increase of 84 net new stores year-over-year. Financially, Ross Stores demonstrated robust operating cash flow generation, increasing significantly to $264.2 million for the nine-month period. The company also announced a new two-year stock repurchase program of up to $400 million, underscoring its commitment to returning capital to shareholders. While cost of goods sold as a percentage of sales saw a slight increase, management is focused on strengthening its off-price model and expanding its market share.
Key Highlights
- 1Total sales for the nine months ended October 29, 2005, increased by 16.7% to $3.53 billion, compared to $3.03 billion in the prior year.
- 2Net earnings for the nine-month period were $128.7 million, up from $118.1 million in the same period last year.
- 3Diluted earnings per share (EPS) increased to $0.87 for the nine months ended October 29, 2005, from $0.78 in the prior year.
- 4The company expanded its store base, ending the period with 735 stores, an increase of 84 net new stores compared to the prior year.
- 5Operating cash flow for the nine months ended October 29, 2005, was $264.2 million, a significant increase from $114.9 million in the prior year.
- 6A new two-year stock repurchase program of up to $400 million was authorized in November 2005.
- 7The company's off-price model continues to gain traction, with off-price share of total apparel sales growing.