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SEC Filings

10-Q
ROSS STORES INC filed this Form 10-Q on 12/12/2018
Entire Document
 


ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

This section and other parts of this Form 10-Q contain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed below under the caption "Forward-Looking Statements" and in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for 2017. The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q and the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for 2017. All information is based on our fiscal calendar.

Overview

Ross Stores, Inc. operates two brands of off-price retail apparel and home fashion stores -- Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS®. Ross is the largest off-price apparel and home fashion chain in the United States with 1,483 locations in 38 states, the District of Columbia and Guam as of November 3, 2018. Ross offers first-quality, in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. We also operate 237 dd’s DISCOUNTS stores in 18 states 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 savings of 20% to 70% off moderate department and discount store regular prices every day.

Results of Operations

The following table summarizes the financial results for the three and nine month periods ended November 3, 2018 and October 28, 2017:

 
Three Months Ended
 
 
Nine Months Ended
 
November 3, 2018

 
October 28, 2017

 
 
November 3, 2018

 
October 28, 2017

Sales
 
 
 
 
 
 
 
 
Sales (millions)
$
3,550

 
$
3,329

 
 
$
10,876

 
$
10,067

Sales growth
6.6
%
 
7.8
%
 
 
8.0
%
 
7.6
%
Comparable store sales growth
3
%
 
4
%
 
 
3
%
 
4
%
 
 
 
 
 
 
 
 
 
Costs and expenses (as a percent of sales)
 
 
 
 
 
 
 
 
Cost of goods sold
71.8
%
 
71.2
%
 
 
71.1
%
 
70.7
%
Selling, general and administrative
15.8
%
 
15.5
%
 
 
15.1
%
 
14.8
%
Interest (income) expense, net
(0.1
%)
 
0.1
%
 
 
(0.0
%)
 
0.1
%
 
 
 
 
 
 
 
 
 
Earnings before taxes (as a percent of sales)
12.5
%
 
13.2
%
 
 
13.8
%
 
14.4
%

 
 
 
 
 
 
 
 
Net earnings (as a percent of sales)
9.5
%
 
8.2
%
 
 
10.5
%
 
9.1
%



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