Summary
Ross Stores, Inc. reported strong financial performance for the third quarter and the first nine months of fiscal year 2016, ended October 29, 2016. The company demonstrated robust sales growth, driven by both new store openings and a healthy increase in comparable store sales. This top-line growth translated into improved profitability, with net earnings and earnings per share showing significant year-over-year increases. The company's off-price strategy continues to resonate with consumers, evidenced by the consistent sales momentum. Management's focus on merchandise margin and operational efficiency contributed to improved cost of goods sold as a percentage of sales. While SG&A expenses saw a slight increase as a percentage of sales due to higher wages, overall profitability metrics remained strong, reflecting effective cost management and successful sales strategies. The company also continued to return capital to shareholders through share repurchases and dividends, underscoring its commitment to shareholder value.
Financial Highlights
48 data points| Revenue | $3.09B |
| Cost of Revenue | $2.21B |
| Gross Profit | $880.60M |
| SG&A Expenses | $490.17M |
| Operating Expenses | $2.70B |
| Interest Expense | $4.64M |
| Net Income | $244.55M |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 390.87M |
| Shares Outstanding (Diluted) | 393.37M |
Key Highlights
- 1Net sales for the third quarter increased by 10.9% to $3.09 billion, with comparable store sales up 7%.
- 2For the nine-month period, net sales grew 7.7% to $9.36 billion, with comparable store sales increasing by 4%.
- 3Diluted earnings per share (EPS) for the third quarter rose to $0.62, a significant increase from $0.53 in the prior year's quarter.
- 4Nine-month diluted EPS reached $2.06, up from $1.85 in the comparable period last year.
- 5Cost of goods sold as a percentage of sales improved for both the quarter (down 50 basis points) and the nine-month period (down 35 basis points), driven by increased merchandise margin.
- 6The company repurchased approximately $530.3 million of its common stock in each of the nine-month periods ending October 29, 2016, and October 31, 2015.
- 7Ross Stores expanded its store base, opening 34 net new stores in the third quarter, bringing the total to 1,535 stores.