Summary
Ross Stores, Inc. reported solid financial results for the third quarter and nine months ended November 2, 2013, demonstrating continued sales growth and improved profitability. Sales increased by 6% for the quarter and 7.6% year-to-date, driven by both new store openings and a 2-3% increase in comparable store sales. Net earnings also saw an increase, with diluted earnings per share rising 11% for the quarter to $0.80 and 16% year-to-date to $2.86. This performance was supported by improvements in merchandise margin and effective management of selling, general, and administrative expenses, despite increased store operating costs due to expansion. The company continues to execute its growth strategy by opening new stores, with 80 net new stores added in the past year, expanding its footprint to 1,285 locations. Significant investments in capital expenditures are underway, including new distribution centers and corporate office upgrades, funded by strong operating cash flows. The company also actively returned capital to shareholders through a robust stock repurchase program and dividend payments, underscoring its commitment to shareholder value.
Financial Highlights
48 data points| Revenue | $2.40B |
| Cost of Revenue | $1.75B |
| Gross Profit | $651.89M |
| SG&A Expenses | $381.86M |
| Operating Expenses | $2.13B |
| Net Income | $171.62M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 423.97M |
| Shares Outstanding (Diluted) | 429.61M |
Key Highlights
- 1Total sales increased by 6.0% to $2.4 billion for the three months ended November 2, 2013, and by 7.6% to $7.5 billion for the nine months ended November 2, 2013, compared to the prior year periods.
- 2Comparable store sales grew by 2% for the quarter and 3% for the nine months, indicating sustained customer demand.
- 3Net earnings for the quarter increased to $171.6 million, resulting in diluted EPS of $0.80, up from $0.72 in the prior year.
- 4For the nine-month period, net earnings rose to $619.4 million, with diluted EPS of $2.86, up from $2.46 in the prior year.
- 5The company expanded its store base by 80 net new stores, bringing the total to 1,285 locations as of November 2, 2013.
- 6Operating cash flow remained strong, providing $681.2 million for the nine months ended November 2, 2013, supporting investment and capital return activities.
- 7Significant capital expenditures of $423.2 million were made in the nine-month period, primarily for new stores, distribution centers, and corporate infrastructure.