Summary
Ross Stores, Inc. reported solid financial results for the first quarter ended April 30, 2016. The company demonstrated top-line growth with a 5.1% increase in sales to $3.09 billion, driven by both new store openings and a 2% comparable store sales increase. Net earnings rose to $290.6 million, or $0.73 per diluted share, up from $282.2 million, or $0.69 per diluted share, in the prior year's first quarter. This performance reflects the company's continued execution of its off-price retail strategy across its Ross Dress for Less and dd's DISCOUNTS banners. Financially, Ross Stores maintained a strong liquidity position, with cash and cash equivalents increasing significantly to $910 million. Operating cash flows were robust, supporting investments in capital expenditures, stock repurchases, and dividend payments. The company also continues its strategic store expansion, ending the quarter with 1,473 stores, a net increase of 74 stores compared to the previous year. Management reiterated its confidence in its strategies to navigate the competitive retail landscape and provided guidance for fiscal year 2016, anticipating continued growth.
Financial Highlights
48 data points| Revenue | $3.09B |
| Cost of Revenue | $2.18B |
| Gross Profit | $912.79M |
| SG&A Expenses | $436.92M |
| Operating Expenses | $2.62B |
| Interest Expense | $4.64M |
| Net Income | $290.63M |
| EPS (Basic) | $0.73 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 395.80M |
| Shares Outstanding (Diluted) | 398.81M |
Key Highlights
- 1Sales increased by 5.1% to $3.09 billion in the first quarter of fiscal 2016 compared to the prior year.
- 2Comparable store sales grew by 2%, indicating healthy performance in established locations.
- 3Net earnings rose to $290.6 million, resulting in diluted EPS of $0.73, an increase from $0.69 in the prior year.
- 4The company expanded its store base, ending the quarter with 1,473 stores, a net increase of 74 stores year-over-year.
- 5Cash and cash equivalents significantly increased to $910 million, demonstrating strong liquidity.
- 6Operating cash flow remained strong at $469 million, supporting business operations and shareholder returns.
- 7The company repurchased approximately $175.8 million worth of common stock during the quarter and declared a cash dividend of $0.1350 per share.