DUBLIN, Calif., Feb. 26, 2015 /PRNewswire/ -- Ross Stores, Inc. (Nasdaq: ROST) today reported
earnings per share of $1.20 for the
fourth quarter ended January 31,
2015, up 18% from $1.02 in the
prior year. Net earnings grew to $249
million, up from $218 million
for the same period last year. Sales for the fiscal 2014
fourth quarter rose 11% to $3.033
billion, with comparable store sales up 6% over the prior
year.
For the fiscal year ended January 31,
2015, earnings per share were $4.42, up 14% from $3.88 for fiscal 2013. Net earnings rose to
$925 million, compared to
$837 million in the prior year.
Sales for the 2014 fiscal year grew 8% to $11.042 billion, with same store sales up 3% over
fiscal 2013.
Barbara Rentler, Chief Executive
Officer, commented, "We are pleased with our fourth quarter sales
and earnings, both of which were well ahead of our expectations, as
our value offering on a wide assortment of name brand bargains and
gifts resonated well with our customers. Our 2014 fourth
quarter operating margin grew 45 basis points to 13.1%, benefiting
from slightly higher merchandise gross margin and leverage on
expenses from our robust comparable sales gain."
Ms. Rentler continued, "For the 2014 fiscal year, our earnings
per share rose a solid 14% on top of strong multi-year
increases. In addition, our fiscal 2014 operating margin
increased 35 basis points to 13.5%."
New Two-Year $1.4 Billion Stock
Repurchase Program and 18% Increase in Cash Dividend
The Company announced that its Board of Directors recently
approved a program to repurchase $1.4
billion of its common stock over the next two years through
fiscal 2016. At recent stock prices, this new authorization
represents about 7% of the Company's total market value and a 27%
increase over the prior two-year $1.1
billion authorization that was completed in January
2015.
The Board also recently approved an increase in the quarterly
cash dividend to $.235 per share, up
18% on top of an 18% increase in the prior year. This higher
quarterly dividend is payable on March 31,
2015 to stockholders of record as of March 9, 2015.
In commenting on these actions, Ms. Rentler said, "Our larger
two-year $1.4 billion stock
repurchase authorization and increase in the quarterly cash
dividend demonstrate our ongoing confidence in the Company's
ability to generate significant amounts of cash after funding our
growth and the other capital needs of our business. We have
repurchased stock as planned every year since 1993 and also raised
our cash dividend annually since 1994. This consistent record
reflects our unwavering commitment to enhancing stockholder value
and returns."
A total of 7.4 million shares of common stock were repurchased
during fiscal 2014, for an aggregate purchase price of $550 million. During the fourth quarter,
the Company repurchased 1.5 million shares for a total price of
$132 million.
Fiscal 2015 Guidance
Looking ahead, Ms. Rentler said, "As we enter 2015, we continue
to face ongoing uncertainty and volatility in the macro-economic
and retail climates. While we hope to do better, based on these
external factors and our own challenging multi-year sales and
earnings comparisons, we are remaining somewhat cautious in our
outlook."
For the fiscal 2015 year ending January
30, 2016, the Company is forecasting same store sales to
grow 1% to 2% and earnings per share of $4.60 to $4.80, up from $4.42 in fiscal 2014. For the first quarter
ending May 2, 2015, comparable store
sales are projected to increase 2% to 3% with earnings per share
forecast in the range of $1.21 to
$1.26, up from $1.15 for the
same period last year.
The Company will host a conference call on Thursday, February 26, 2015 at 4:15 p.m. Eastern time to provide additional
details concerning its fourth quarter and fiscal year 2014 results
and management's outlook and plans for fiscal 2015. A
real-time audio webcast of the conference call will be available in
the Investors section of the Company's website, located at
www.rossstores.com. An audio playback will be available at
404-537-3406, PIN #81791641 until 8:00 p.m.
Eastern time on March 5, 2015,
as well as on the Company's website.
Forward-Looking Statements: This press
release on our corporate website contains forward-looking
statements regarding expected sales, earnings levels and other
financial results in future periods that are subject to risks and
uncertainties which could cause our actual results to differ
materially from management's current expectations. The words
"plan," "expect," "target," "anticipate," "estimate," "believe,"
"forecast," "projected," "guidance," "looking ahead" and similar
expressions identify forward-looking statements. Risk factors for
Ross Dress for Less® ("Ross") and dd's
DISCOUNTS® include without limitation, competitive
pressures in the apparel or home-related merchandise retailing
industry; changes in the level of consumer spending on or
preferences for apparel or home-related merchandise; impacts from
the macro-economic environment and financial and credit markets
that affect consumer disposable income and consumer confidence,
including but not limited to interest rates, recession,
inflation, deflation, energy costs, tax rates and policy,
unemployment trends, and fluctuating commodity costs; changes in
geopolitical and geoeconomic conditions; unseasonable weather
trends; potential disruptions in supply chain or information
systems; lower than planned gross margin, including higher than
planned markdowns and higher than expected inventory shortage;
greater than planned operating costs; our ability to continue to
purchase attractive brand name merchandise at desirable discounts;
attracting and retaining personnel with the retail talent necessary
to execute our strategies; effectively operating and continually
upgrading our various supply chain, core merchandising and other
information systems; improving our merchandising and transaction
processing capabilities and the reliability and security of our
data communications systems through the implementation of new
processes and systems enhancements; effectively protecting against
security breaches, including cyber-attacks on our transaction
processing and computer information systems, that could result in
the theft, transfer or unauthorized disclosure of customer, credit
card, employee or other private and valuable information that we
collect and process in the ordinary course of our business, and
avoiding resulting damage to our reputation, loss of customer
confidence, exposure to litigation and regulatory action,
unanticipated costs and disruption of our operations; obtaining
acceptable new store locations and improving new store sales and
profitability, especially in newer regions and markets; adding
capacity to our existing distribution centers and building out
planned additional distribution centers timely and cost
effectively; and achieving and maintaining targeted levels of
productivity and efficiency in our existing and new distribution
centers. Other risk factors are set forth in our SEC filings
including without limitation, the Form 10-K for fiscal 2013, Form
10-Qs for fiscal 2014 and 8-Ks for fiscal 2014 and 2015. The
factors underlying our forecasts are dynamic and subject to
change. As a result, our forecasts speak only as of the date
they are given and do not necessarily reflect our outlook at any
other point in time. We do not undertake to update or revise
these forward-looking statements.
Ross Stores, Inc. is an S&P
500, Fortune 500 and Nasdaq 100 (ROST) company headquartered in
Dublin, California, with fiscal
2014 revenues of $11.0 billion.
The Company operates Ross Dress for Less® ("Ross"), the
largest off-price apparel and home fashion chain in the United States with 1,210 locations in 33
states, the District of Columbia
and Guam at fiscal 2014 year end.
Ross offers first-quality, in-season, name brand and designer
apparel, accessories, footwear and home fashions for the entire
family at everyday savings of 20% to 60% off department and
specialty store regular prices. The Company also operates 152 dd's
DISCOUNTS® in 15 states at the end of fiscal 2014 that
feature a more moderately-priced assortment of first-quality,
in-season, name brand apparel, accessories, footwear and home
fashions for the entire family at everyday savings of 20% to 70%
off moderate department and discount store regular prices.
Additional information is available at www.rossstores.com.
Contact:
|
Michael
Hartshorn
|
Connie
Wong
|
|
Senior Vice
President,
|
Director, Investor
Relations
|
|
Chief Financial
Officer
|
(925)
965-4668
|
|
(925)
965-4503
|
connie.wong@ros.com
|
Ross Stores,
Inc.
|
Condensed
Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
($000, except stores
and per share data, unaudited)
|
|
|
January 31,
2015
|
|
February 1,
2014
|
|
January 31,
2015
|
|
February 1,
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
$3,032,698
|
|
$2,741,040
|
|
$11,041,677
|
|
$10,230,353
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,203,570
|
|
1,992,101
|
|
7,937,956
|
|
7,360,924
|
|
Selling, general and
administrative
|
|
|
430,342
|
|
401,345
|
|
1,615,371
|
|
1,526,366
|
|
Interest expense
(income), net
|
|
|
2,406
|
|
(129)
|
|
2,984
|
|
(247)
|
|
|
Total costs and
expenses
|
|
|
2,636,318
|
|
2,393,317
|
|
9,556,311
|
|
8,887,043
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
taxes
|
|
|
396,380
|
|
347,723
|
|
1,485,366
|
|
1,343,310
|
Provision for taxes
on earnings
|
|
|
147,850
|
|
129,770
|
|
560,642
|
|
506,006
|
Net
earnings
|
|
|
$ 248,530
|
|
$ 217,953
|
|
$ 924,724
|
|
$ 837,304
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
1.21
|
|
$ 1.04
|
|
$
4.47
|
|
$
3.93
|
|
Diluted
|
|
|
$
1.20
|
|
$ 1.02
|
|
$
4.42
|
|
$
3.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (000)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
204,557
|
|
210,293
|
|
206,777
|
|
212,881
|
|
Diluted
|
|
|
206,731
|
|
213,181
|
|
209,039
|
|
215,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
|
$
0.20
|
|
$ 0.17
|
|
$
0.80
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stores open at end of
period
|
|
|
1,362
|
|
1,276
|
|
1,362
|
|
1,276
|
|
|
|
|
|
|
|
|
|
|
|
|
Ross Stores,
Inc.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($000,
unaudited)
|
|
January 31,
2015
|
|
February 1,
2014
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 696,608
|
|
$ 423,168
|
|
Short-term
investments
|
|
500
|
|
12,006
|
|
Accounts
receivable
|
|
73,278
|
|
62,612
|
|
Merchandise
inventory
|
|
1,372,675
|
|
1,257,155
|
|
Prepaid expenses and
other
|
|
106,778
|
|
101,991
|
|
Deferred income
taxes
|
|
12,951
|
|
10,227
|
|
|
Total current
assets
|
|
2,262,790
|
|
1,867,159
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,273,752
|
|
1,875,299
|
Long-term
investments
|
|
3,110
|
|
3,710
|
Other long-term
assets
|
|
163,482
|
|
150,629
|
Total
assets
|
|
$4,703,134
|
|
$3,896,797
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$1,000,700
|
|
$ 779,455
|
|
Accrued expenses and
other
|
|
385,325
|
|
359,929
|
|
Accrued payroll and
benefits
|
|
256,141
|
|
235,324
|
|
Income taxes
payable
|
|
17,202
|
|
18,349
|
|
|
Total current
liabilities
|
|
1,659,368
|
|
1,393,057
|
|
|
|
|
|
|
|
Long-term
debt
|
|
398,375
|
|
150,000
|
Other long-term
liabilities
|
|
279,500
|
|
287,567
|
Deferred income
taxes
|
|
86,681
|
|
58,871
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
2,279,210
|
|
2,007,302
|
Total liabilities and
stockholders' equity
|
|
$4,703,134
|
|
$3,896,797
|
|
|
|
|
|
|
|
Ross Stores,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
($000,
unaudited)
|
|
January 31,
2015
|
|
February 1,
2014
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities
|
|
|
|
|
Net
earnings
|
|
$ 924,724
|
|
$ 837,304
|
Adjustments to
reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
232,959
|
|
206,111
|
|
Stock-based
compensation
|
|
53,001
|
|
46,847
|
|
Deferred income
taxes
|
|
25,086
|
|
(15,250)
|
|
Tax benefit from
equity issuance
|
|
29,759
|
|
27,661
|
|
Excess tax benefit
from stock-based compensation
|
|
(29,415)
|
|
(26,906)
|
|
Change in assets and
liabilities:
|
|
|
|
|
|
|
Merchandise
inventory
|
|
(115,520)
|
|
(47,918)
|
|
|
Other current
assets
|
|
(16,410)
|
|
(9,875)
|
|
|
Accounts
payable
|
|
204,158
|
|
(4,104)
|
|
|
Other current
liabilities
|
|
69,568
|
|
(18,562)
|
|
|
Other long-term,
net
|
|
(5,045)
|
|
26,695
|
|
|
Net cash provided by
operating activities
|
|
1,372,865
|
|
1,022,003
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities
|
|
|
|
|
Additions to property
and equipment
|
|
(646,691)
|
|
(550,515)
|
Increase in
restricted cash and investments
|
|
(4,329)
|
|
(2,895)
|
Purchases of
investments
|
|
-
|
|
(12,012)
|
Proceeds from
investments
|
|
12,021
|
|
1,614
|
|
|
Net cash used in
investing activities
|
|
(638,999)
|
|
(563,808)
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
Excess tax benefit
from stock-based compensation
|
|
29,415
|
|
26,906
|
Proceeds from
issuance of long-term debt
|
|
245,676
|
|
-
|
Issuance of common
stock related to stock plans
|
|
21,978
|
|
19,074
|
Treasury stock
purchased
|
|
(39,041)
|
|
(29,851)
|
Repurchase of common
stock
|
|
(550,000)
|
|
(550,000)
|
Dividends
paid
|
|
(168,454)
|
|
(147,917)
|
|
|
Net cash used in
financing activities
|
|
(460,426)
|
|
(681,788)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
273,440
|
|
(223,593)
|
|
|
|
|
|
|
|
Cash and cash
equivalents:
|
|
|
|
|
|
|
Beginning of
period
|
|
423,168
|
|
646,761
|
|
|
End of
period
|
|
$ 696,608
|
|
$ 423,168
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Disclosures
|
|
|
|
|
Interest
paid
|
|
$ 9,668
|
|
$ 9,668
|
Income taxes
paid
|
|
$ 510,145
|
|
$ 506,182
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ross-stores-reports-fourth-quarter-and-fiscal-2014-results-300042355.html
SOURCE Ross Stores, Inc.