Summary
Ross Stores, Inc. (ROST) reported strong financial performance for the first quarter ended May 1, 2010. The company experienced significant sales growth of 14.4%, reaching $1.935 billion, driven by a robust 10% increase in comparable store sales and the addition of new store locations. This top-line growth translated into a substantial increase in net earnings, which rose 56% year-over-year to $142.3 million, leading to a 61% surge in diluted Earnings Per Share (EPS) to $1.16. The company demonstrated improved operational efficiency, with Cost of Goods Sold and Selling, General, and Administrative expenses decreasing as a percentage of sales. This operational leverage, combined with strong sales, resulted in a significant improvement in pre-tax earnings margin. Ross Stores continues its expansion strategy, with plans for further store openings, supported by a solid financial position, including substantial cash and cash equivalents and an undrawn revolving credit facility. The company also actively returned capital to shareholders through its ongoing stock repurchase program and dividend payments.
Financial Highlights
46 data points| Revenue | $1.93B |
| Cost of Revenue | $1.41B |
| Gross Profit | $528.70M |
| SG&A Expenses | $294.47M |
| Operating Expenses | $1.70B |
| Net Income | $142.35M |
| EPS (Basic) | $0.29 |
| EPS (Diluted) | $0.29 |
| Shares Outstanding (Basic) | 479.32M |
| Shares Outstanding (Diluted) | 489.33M |
Key Highlights
- 1Sales increased by 14.4% to $1.935 billion for the first quarter of fiscal 2010 compared to the prior year.
- 2Comparable store sales grew by a strong 10%, indicating healthy customer demand.
- 3Net earnings surged by 56% to $142.3 million, with diluted EPS increasing 61% to $1.16.
- 4Gross margin improved due to lower cost of goods sold as a percentage of sales, driven by better merchandise gross margin, lower shortage accrual, occupancy leverage, and reduced distribution costs.
- 5Selling, general, and administrative expenses as a percentage of sales decreased due to leverage from strong comparable store sales growth.
- 6The company repurchased approximately $94.3 million of common stock under its repurchase program and paid $19.6 million in dividends during the quarter.
- 7Ross Stores operated 1,021 stores at the end of the period, an increase from 974 stores in the prior year, reflecting its ongoing expansion strategy.