Summary
Ross Stores, Inc. (ROST) reported a solid first quarter for fiscal year 2013, with net sales increasing by 7.8% to $2.54 billion and comparable store sales growing by 3%. This top-line growth translated into a 15% increase in diluted earnings per share, reaching $1.07, up from $0.93 in the prior year. The company's effective tax rate remained stable at approximately 38%. Management highlighted strong operational execution and strategic initiatives, including store expansion, as drivers of performance. The company also announced a new two-year, $1.1 billion stock repurchase program and continued to return capital to shareholders through dividends, though cash dividends declared per share were $0 for the period reported in the Condensed Consolidated Statements of Earnings. Financially, ROST demonstrated robust operating cash flow of $352.9 million, an increase from the prior year, supporting significant investments in capital expenditures, which rose to $97.6 million, primarily for new store openings and infrastructure projects like new distribution centers. The company maintained a strong balance sheet with ample liquidity, evidenced by its $600 million revolving credit facility remaining fully available and no outstanding borrowings. Management expressed confidence in their ability to meet ongoing operating needs and planned investments for at least the next twelve months.
Financial Highlights
47 data points| Revenue | $2.54B |
| Cost of Revenue | $1.80B |
| Gross Profit | $741.10M |
| SG&A Expenses | $361.97M |
| Operating Expenses | $2.16B |
| Net Income | $234.61M |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 430.82M |
| Shares Outstanding (Diluted) | 436.99M |
Key Highlights
- 1Net sales increased by 7.8% to $2.54 billion for the three months ended May 4, 2013, compared to $2.36 billion in the prior year.
- 2Comparable store sales grew by 3%, indicating continued customer traffic and demand.
- 3Diluted earnings per share (EPS) rose by 15% to $1.07, up from $0.93 in the prior year's quarter.
- 4Operating cash flow increased to $352.9 million, up from $297.3 million, demonstrating strong cash generation from operations.
- 5Capital expenditures increased significantly to $97.6 million, supporting expansion and infrastructure development, including new distribution centers.
- 6The company repurchased $138.3 million of common stock during the quarter and announced a new $1.1 billion stock repurchase program for fiscal years 2013-2014.
- 7Ross Stores ended the period with 1,227 stores, an increase of 81 net new stores compared to the prior year period.