Ross Stores Increases Profits
May 23, 2005,
Pleasanton, Calif. — Helped by a double-digit boost in sales, fueled by new store openings, first quarter profits at Ross Stores Inc. increased 4 percent, to $50.1 million from $48.1 million last year.
Sales at the diversified apparel and soft home retailer rose 13.3 percent, to $1.1 billion from $991.9 million during the same period the year before. Same-store sales rose 3 percent.
Putting a modest cap on profits, average gross margin thinned 80 basis points, or eight-tenths of a percentage point, to 23.5 percent from 24.3 percent. Michael Balmuth, vice chairman, president and CEO, commented, “As expected, a combination of higher markdowns and higher distribution center costs contributed to lower gross margin.”
When measured as a percentage of rising sales, operating costs held steady at 16.3 percent.
Providing a lift to the bottom line, Ross kept a tight grip on stockpiles, which climbed at a modestly slower pace than sales, rising 12.3 percent, to $967.4 million, compared with the 13.3 percent increase in sales.
In a further assist, Ross recorded interest income of $298,000, after paying $170,000 in interest expense during the year-before period.
Balmuth noted, “Our balance sheet and cash flows remain strong and healthy. We continue to return capital to stockholders through our stock repurchase and dividend programs. During the first three months of 2005, we repurchased 1.5 million shares of common stock for an aggregate of $42.6 million under the two-year, $350 million program.” He said $132 million remains available for future stock repurchases, which he expects to be completed by the end of the year.
Ross Stores Inc.
|Qtr. 4/30 (x000)||2005||2004||% change|
|a. First quarter results include interest income of $298,000, compared with interest expense of $170,000 during the same period a year ago.
|Oper. Income (EBIT)||81,885||79,230||3.4|
|Per share (diluted)||0.34||0.31||9.7|
|Average gross margin||23.5%||24.3%||—|
Related Content By Author
1200 Suppliers are Ready for You at Intertextile Shanghai
Home & Textiles Today eDaily
Most Viewed Articles
See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.