Summary
Ross Stores, Inc. reported strong top-line growth for the first quarter of fiscal year 2011, with sales increasing by 7.2% to $2.07 billion compared to the prior year period. This growth was driven by both new store openings and a 3% increase in comparable store sales. The company also demonstrated improved profitability, with net earnings rising to $173 million, a 21.5% increase year-over-year, leading to a diluted EPS of $1.48, up from $1.16. This performance reflects effective cost management, as evidenced by a decrease in the cost of goods sold as a percentage of sales, and improved merchandise gross margins. Financially, the company maintained a solid balance sheet with total assets of approximately $3.1 billion. While operating cash flow saw a significant decrease primarily due to strategic inventory purchases, particularly packaway merchandise, the company maintained adequate liquidity. Ross Stores also continued its capital allocation strategy, repurchasing approximately $112.5 million in common stock and declaring a quarterly dividend. The company's outlook remains positive, with management focused on leveraging its off-price model to deliver value to customers amidst a competitive retail landscape.
Financial Highlights
46 data points| Revenue | $2.07B |
| Cost of Revenue | $1.48B |
| Gross Profit | $593.37M |
| SG&A Expenses | $309.16M |
| Operating Expenses | $1.79B |
| Net Income | $172.97M |
| EPS (Basic) | $0.38 |
| EPS (Diluted) | $0.37 |
| Shares Outstanding (Basic) | 459.06M |
| Shares Outstanding (Diluted) | 467.09M |
Key Highlights
- 1Sales increased by 7.2% to $2.07 billion for the first quarter of fiscal 2011, up from $1.93 billion in the prior year.
- 2Net earnings grew by 21.5% to $173 million, compared to $142.3 million in the same period last year.
- 3Diluted earnings per share (EPS) increased by 28% to $1.48, up from $1.16 in the prior year.
- 4Comparable store sales increased by 3%, indicating healthy demand at existing locations.
- 5Cost of goods sold as a percentage of sales decreased by 130 basis points, primarily driven by improved merchandise gross margin.
- 6The company expanded its store base, ending the quarter with 1,068 stores, a net increase of 47 stores since the prior year period.
- 7Significant stock repurchases continued, with $112.5 million spent on share buybacks during the quarter.