Summary
Ross Stores, Inc. reported solid financial results for the third quarter and first nine months of fiscal year 2019, demonstrating continued growth and profitability. Sales increased by 8.4% in the third quarter and 6.9% for the first nine months, driven by both new store openings and a 5% and 3% comparable store sales growth, respectively. Net earnings also saw a significant increase, with diluted EPS rising to $1.03 in the third quarter and $3.32 for the nine-month period, up from $0.91 and $3.06 in the prior year, respectively. The company's strategic focus on expanding its store base and offering value to customers continues to pay off. Despite increased costs associated with distribution and occupancy, merchandise margin improvements and strong sales leverage helped maintain healthy profit margins. Ross Stores also continued its commitment to shareholder returns through significant stock repurchases and dividend payments, underscoring its financial strength and confidence in future performance.
Financial Highlights
50 data points| Revenue | $3.85B |
| Cost of Revenue | $2.77B |
| Gross Profit | $1.08B |
| SG&A Expenses | $604.61M |
| Operating Expenses | $3.37B |
| Interest Expense | $3.28M |
| Net Income | $370.93M |
| EPS (Basic) | $1.04 |
| EPS (Diluted) | $1.03 |
| Shares Outstanding (Basic) | 356.88M |
| Shares Outstanding (Diluted) | 359.30M |
Key Highlights
- 1Total sales increased by 8.4% to $3.85 billion for the third quarter and 6.9% to $11.63 billion for the first nine months, demonstrating robust top-line growth.
- 2Comparable store sales increased by 5% for the third quarter and 3% for the first nine months, indicating healthy performance in existing stores.
- 3Net earnings grew to $370.9 million for the third quarter, with diluted EPS of $1.03, compared to $338.1 million and $0.91 in the prior year's quarter.
- 4The company continued its store expansion, ending the period with 1,810 stores, an increase from 1,720 stores in the prior year.
- 5Cash used in financing activities increased due to higher stock repurchases ($965.9 million) and dividend payments ($278.4 million) for the nine-month period.
- 6The company entered into a new $800 million unsecured revolving credit facility, replacing the previous $600 million facility, providing ample liquidity.
- 7Effective tax rate decreased to approximately 23% for the period, down from 24% in the prior year, partly due to the resolution of tax positions.