Summary
Ross Stores, Inc. reported strong performance for the quarter and six months ended August 3, 2013, demonstrating robust sales growth driven by both new store openings and comparable store sales increases. Net earnings and diluted earnings per share saw significant year-over-year improvements, reflecting effective cost management and improved merchandise margins. The company continues to execute its expansion strategy, with a notable increase in capital expenditures focused on new distribution centers and store improvements, signaling a commitment to long-term growth and operational efficiency. Financially, the company maintains a healthy liquidity position, supported by strong operating cash flows and an undrawn revolving credit facility. The significant buyback of common stock and consistent dividend payments underscore the company's commitment to returning value to shareholders. While facing a competitive retail landscape, Ross Stores appears well-positioned to leverage its off-price model, with management expressing confidence in their ability to meet financial obligations and fund future investments.
Financial Highlights
47 data points| Revenue | $2.55B |
| Cost of Revenue | $1.82B |
| Gross Profit | $727.50M |
| SG&A Expenses | $381.19M |
| Operating Expenses | $2.20B |
| Net Income | $213.12M |
| EPS (Basic) | $0.50 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 427.67M |
| Shares Outstanding (Diluted) | 433.23M |
Key Highlights
- 1Sales increased by 9.0% to $2.55 billion for the three months ended August 3, 2013, driven by a 4% comparable store sales growth and new store openings.
- 2Net earnings rose by 17.0% to $213.1 million ($0.98 diluted EPS) for the three months ended August 3, 2013, compared to $182.0 million ($0.81 diluted EPS) in the prior year.
- 3Cost of goods sold as a percentage of sales decreased by approximately 70 basis points, primarily due to an 80 basis point increase in merchandise margin.
- 4Selling, general, and administrative expenses as a percentage of sales decreased by 10 basis points, benefiting from leverage on store operating costs.
- 5The company's store count grew to 1,253, with 27 new stores opened during the quarter.
- 6Capital expenditures significantly increased to $271.7 million for the six months ended August 3, 2013, reflecting investments in new distribution centers and store upgrades.
- 7The company repurchased approximately $276.6 million of common stock during the six-month period, demonstrating a commitment to shareholder returns.