Summary
Ross Stores, Inc. reported solid results for the second quarter and first half of fiscal 2019, demonstrating continued growth in sales and earnings. For the three months ended August 3, 2019, sales increased by 6.5% to $3.98 billion, driven by both new store openings and a comparable store sales increase of 3%. Diluted earnings per share (EPS) rose to $1.14, up from $1.04 in the prior year's period. The company maintained its profitability, with net earnings as a percentage of sales remaining stable at 10.4% year-over-year for the quarter. Looking at the first half of the fiscal year, sales grew by 6.1% to $7.78 billion, with comparable store sales up 2%. Diluted EPS increased to $2.29 from $2.15 in the comparable period last year. The company's financial position remains strong, supported by healthy cash flows from operations. Ross Stores continues to execute its expansion strategy, adding net new stores and repurchasing shares, reflecting confidence in its business model and commitment to returning value to shareholders.
Financial Highlights
50 data points| Revenue | $3.98B |
| Cost of Revenue | $2.84B |
| Gross Profit | $1.14B |
| SG&A Expenses | $591.97M |
| Operating Expenses | $3.43B |
| Interest Expense | $3.28M |
| Net Income | $412.72M |
| EPS (Basic) | $1.15 |
| EPS (Diluted) | $1.14 |
| Shares Outstanding (Basic) | 359.79M |
| Shares Outstanding (Diluted) | 362.07M |
Key Highlights
- 1Total sales for the three months ended August 3, 2019, increased 6.5% to $3.98 billion compared to $3.74 billion for the same period in the prior year.
- 2Comparable store sales increased 3% for the three-month period, contributing to overall sales growth.
- 3Net earnings for the three months ended August 3, 2019, were $412.7 million, a 5.9% increase from $389.4 million in the prior year.
- 4Diluted earnings per share (EPS) for the three months increased to $1.14, up from $1.04 in the prior year's quarter, reflecting both earnings growth and a reduction in weighted average shares outstanding due to repurchases.
- 5The company opened 28 net new stores during the quarter, expanding its retail footprint to 1,772 locations.
- 6Operating cash flow for the six months ended August 3, 2019, was $1.08 billion, an increase from $1.01 billion in the prior year, indicating strong operational performance.
- 7The company repurchased approximately $640.3 million of its common stock during the first six months of the fiscal year, demonstrating a commitment to shareholder returns.