Summary
Ross Stores, Inc. reported a strong second quarter for fiscal year 2009, with net sales increasing by 7.8% to $1.77 billion and net earnings rising by 45% to $103.4 million compared to the prior year period. Diluted earnings per share (EPS) saw a significant increase of 52% to $0.82. This performance was driven by both comparable store sales growth of 3% and the addition of 47 net new stores. The company demonstrated improved profitability as evidenced by a decrease in cost of goods sold as a percentage of sales, primarily due to higher merchandise gross margin and reduced freight costs. Financially, the company maintained a healthy liquidity position, with cash and cash equivalents increasing substantially. Operating cash flow saw a significant boost, driven in part by improved accounts payable leverage. While capital expenditures for store expansion continued, the company remained committed to returning value to shareholders through its stock repurchase program and consistent dividend payments, reinforcing investor confidence in its operational resilience and financial management during a challenging economic period.
Financial Highlights
46 data points| Revenue | $1.77B |
| Cost of Revenue | $1.31B |
| Gross Profit | $457.50M |
| SG&A Expenses | $286.16M |
| Operating Expenses | $1.60B |
| Net Income | $103.41M |
| EPS (Basic) | $0.21 |
| EPS (Diluted) | $0.20 |
| Shares Outstanding (Basic) | 493.87M |
| Shares Outstanding (Diluted) | 502.63M |
Key Highlights
- 1Net sales increased by 7.8% to $1.77 billion for the three months ended August 1, 2009, compared to $1.64 billion in the prior year period.
- 2Net earnings surged by 45% to $103.4 million for the quarter, with diluted EPS growing 52% to $0.82.
- 3Comparable store sales increased by 3% for the quarter, indicating continued consumer demand for the company's off-price offerings.
- 4Cost of goods sold as a percentage of sales decreased by approximately 240 basis points, driven by improved merchandise gross margin and lower freight costs.
- 5Cash and cash equivalents increased significantly to $520.4 million as of August 1, 2009, up from $309.6 million at the start of the fiscal year.
- 6The company continued its share repurchase program, buying back approximately 1.95 million shares for $146 million during the third month of the quarter.
- 7Ross Stores maintained a strong liquidity position with $600 million in available revolving credit and adequate cash flows from operations to fund planned investments.