NEWARK, Calif., March 18 /PRNewswire/ -- Ross Stores, Inc. (NASDAQ:ROST)
today reported record earnings for both the fourth quarter and fiscal year
ended February 1, 1997. All earnings per share figures unless otherwise noted
reflect a two-for-one stock split effected in the form of a 100% stock
dividend paid on March 5, 1997.
Net earnings for the 52 weeks ended February 1, 1997 increased 87% to
$80.9 million, or $1.57 per share on a fully-diluted basis, compared to net
earnings for the 53 weeks ended February 3, 1996 of $43.3 million, or $.86 per
share. On a pre-split basis, earnings per share for fiscal 1996 were $3.15.
Net earnings for the 13 weeks ended February 1, 1997 increased 51% to $32.0
million, or $.63 per share, compared to net earnings of $21.2 million, or $.42
per share, for the 14 weeks ended February 3, 1996. On a pre-split basis,
earnings per share for the fourth quarter of 1996 were $1.26.
Sales for the 52 weeks ended February 1, 1997 increased 19% to $1.690
billion, compared to $1.426 billion for the 53 weeks ended February 3, 1996,
with comparable store sales up 13% on a day-for-day basis. For the 13 weeks
ended February 1, 1997, sales increased 14% to $510 million, compared to $447
million for the 14 weeks ended February 3, 1996, with comparable store sales
up 14% on a day-for-day basis.
In commenting on these results, Vice Chairman and Chief Executive Officer
Michael Balmuth stated, "By any measure, 1996 was an outstanding year for our
company. Our continued focus on delivering more compelling values to
customers and an improved operating environment for apparel retailers combined
to drive both sales and earnings to record levels."
"Operating results in 1996 benefited from improvements in both gross
margin and general, selling and administrative expense ratios. Together,
these drove operating margin to a record 8.0% for the year, compared to 5.2%
in 1995. A key contributor to this improved profitability was the ongoing
controls we exerted on both expenses and inventories. Even though same store
sales increased 13% for the year, in-store inventories on a comparable basis
to 1996 were just slightly up at year-end. Total consolidated inventories
increased 26% as a result of our strategic investment in additional packaway
goods and the growth in new stores. The higher levels of packaway merchandise
enable us to offer larger and more compelling discounts while also giving us
the flexibility to respond quickly to increases in our sales momentum. We
believe these important inventory resources were the key driver of our
stronger operating results in 1996 and will enhance our opportunities for
future sales and earnings gains in 1997."
Mr. Balmuth continued, "We are also pleased to report that the company
significantly strengthened its financial position in 1996. Bank debt was
totally eliminated by year-end, and return on average stockholders equity
increased to 26%, from 16% in the prior year. Cash flows funded the opening
of 21 new stores, the repurchase of 4.5 million shares of common stock, and
increases in the quarterly cash dividend. In addition, the Board of Directors
recently authorized the buyback of an additional 3.0 million shares for 1997.
Enhancing stockholder value remains the top priority for the company."
This press release contains certain forward-looking statements which are
subject to risks and uncertainties that could cause the company's actual
results to differ materially from management's current expectations. These
factors among others are detailed in the company's Form 10-K for fiscal 1995
and include competitive pressures in the apparel industry, changes in the
level of consumer spending on or preferences in apparel or home-related
merchandise, and the company's ability to continue to purchase attractive name
brand merchandise at desirable discounts.
Ross Stores, Inc. operates a national chain of off-price retail stores
offering first quality, in-season, branded apparel and apparel-related
merchandise for the entire family at prices that average 20% to 60% less than
department and specialty stores, as well as merchandise for the home at
similar savings. The company had 309 stores in operation February 1, 1997,
compared to 292 stores at the end of the same period last year.
ROSS STORES, INC.
Consolidated Statements of Earnings
13 weeks 14 weeks 52 weeks 53 weeks
ended ended ended ended
Feb. 1, Feb. 3, Feb. 1, Feb. 3,
($000, except 1997 1996 1997 1996
per share data)
Sales 509,823 447,079 1,689,810 1,426,397
Costs and Expenses
Cost of goods sold
and occupancy 360,663 321,052 1,194,136 1,031,455
General, selling
and administrative 89,414 83,722 332,439 293,051
Depreciation and
amortization 6,966 6,756 28,754 27,033
Interest expense
(income) (497) 285 (360) 2,737
456,546 411,815 1,554,969 1,354,276
Earnings before
income taxes 53,277 35,264 134,841 72,121
Provision for taxes
on earnings 21,311 14,105 53,936 28,849
Net earnings $31,966 $21,159 $80,905 $43,272
Earnings per share (A)
Primary $0.63 $0.43 $1.58 $0.87
Fully diluted $0.63 $0.42 $1.57 $0.86
Weighted average shares
outstanding (A)
Primary 50,519 49,684 51,311 49,504
Fully diluted 50,519 49,812 51,397 50,112
Stores open end of period 309 292 309 292
(A) All earnings per share and share information reflect a two-for-one
stock split effected in the form of a 100% stock dividend paid on March 5,
1997.
ROSS STORES, INC.
Condensed Consolidated Balance Sheets
Feb. 1, Feb. 3,
($000, unaudited) 1997 1996
Assets
Current Assets
Cash and cash equivalents 44,777 23,426
Accounts receivable 7,832 7,598
Merchandise inventory 373,689 295,965
Other current assets 13,289 13,474
Total Current Assets $439,587 $340,463
Property and equipment, net 192,647 181,376
Lease rights and other assets 23,681 19,313
$655,915 $541,152
Liabilities and
Stockholders' Equity
Current Liabilities
Accounts payable, accrued
expenses and other 282,218 208,216
Income taxes payable 21,507 10,555
Total Current Liabilities $303,725 $218,771
Long-term debt 0 9,806
Deferred income taxes and
other liabilities 29,652 21,059
Stockholders' Equity 322,538 291,516
$ 655,915 $541,152
SOURCE Ross Stores Inc.
-0- 03/18/97
/NOTE TO EDITORS: Ross Stores, Inc. press releases are available at no
charge through PR Newswire's Company News On-Call fax service. For a menu of
available Ross Stores press releases or to retrieve a specific release, call
800-317-ROSS. These releases also are available on the Internet via
PR Newswire's Home Page on the World Wide Web:
prnewswire.com
/CONTACT: John Vuko, Senior Vice President & Controller, 510-505-4400, or
Katie Loughnot, Director, Investor Relations & Assistant Corporate Secretary,
510-505-4509, both of Ross Stores, Inc./
(ROST) |
