Summary
Ross Stores, Inc. reported solid financial results for the first quarter of fiscal year 2014, demonstrating continued growth and operational strength. Sales increased by 5.5% to $2.68 billion, driven by the opening of 82 net new stores and a 1% increase in comparable store sales. Net earnings grew to $243.9 million, or $1.15 per diluted share, up from $234.6 million, or $1.07 per diluted share, in the prior year period. This increase in earnings per share was supported by both higher net earnings and a reduction in weighted average diluted shares outstanding due to the company's active stock repurchase program. The company maintained a strong liquidity position, with cash and cash equivalents increasing significantly. Capital expenditures remained robust, reflecting investments in new stores, distribution centers, and IT systems, including a notable planned investment for the purchase of its New York buying office. Ross Stores continues to execute its off-price retail strategy, focusing on delivering value to customers while managing costs effectively.
Financial Highlights
48 data points| Revenue | $2.68B |
| Cost of Revenue | $1.91B |
| Gross Profit | $772.41M |
| SG&A Expenses | $379.80M |
| Operating Expenses | $2.29B |
| Interest Expense | $2.43M |
| Net Income | $243.91M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 417.90M |
| Shares Outstanding (Diluted) | 423.03M |
Key Highlights
- 1Sales increased 5.5% to $2.68 billion year-over-year, driven by store expansion and a 1% comparable store sales increase.
- 2Net earnings rose to $243.9 million ($1.15 diluted EPS) from $234.6 million ($1.07 diluted EPS) in the prior year quarter.
- 3The company repurchased approximately 2.0 million shares of common stock for $138.7 million during the quarter, contributing to EPS growth.
- 4Cash and cash equivalents increased by $172.8 million to $596.0 million, indicating strong cash generation from operations.
- 5Capital expenditures increased to $148.7 million, primarily for new store openings, distribution center construction, and IT system upgrades, with significant planned future investment in the New York buying office.
- 6The dividend per share declared was $0.20, compared to no dividend declared in the prior year's comparable period, indicating a return of capital to shareholders.
- 7The company opened 37 new stores and closed 4, ending the quarter with 1,309 stores.