UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
_______________
Form 8-K
Washington, D.C. 20549
_______________
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date
of earliest event reported):
March 18, 2010
March 18, 2010
ROSS STORES, INC.
(Exact name of registrant as specified in its charter)
(Exact name of registrant as specified in its charter)
| Delaware | 0-14678 | 94-1390387 |
| (State or other jurisdiction of | (Commission File No.) | (I.R.S. Employer Identification |
| incorporation) | No.) |
4440 Rosewood Drive, Pleasanton, California,
94588-3050
(Address of principal
executive offices)
Registrant’s telephone
number, including area code:
(925) 965-4400
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
| [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
[
] Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
[
] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
[
] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
|
| ROSS STORES, INC. | 4440 Rosewood Drive, Pleasanton, California 94588-3050 | (925) 965-4400 |
Item 2.02 Results of Operations and Financial
Condition.
On March 18, 2010,
the Company issued a press release regarding the Company’s financial results for
its fiscal quarter and fiscal year ended January 30, 2010. The full text of the
Company’s press release is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(c)
Exhibits.
| Exhibit No. | Description | |
| 99.1 | March 18, 2010 Press Release by Ross Stores, Inc.* |
*Pursuant to Item
2.02 of Form 8-K, Exhibit 99.1 shall not be deemed “filed” for purposes of
Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, except as shall be
expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly
authorized.
Date: March 18, 2010
| ROSS STORES, INC. | ||
| Registrant | ||
| By: | /s/J. Call | |
| John G. Call | ||
| Senior Vice President, Chief Financial Officer and | ||
| Principal Accounting Officer | ||
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Exhibit 99.1
 |
| Contact: | John G. Call | Bobbi Chaville | ||
| Senior Vice President, | Senior Director, Investor Relations | |||
| Chief Financial Officer | Phone: (925) 965-4289 | |||
| Phone: (925) 965-4315 | Email: bobbi.chaville@ros.com |
ROSS STORES REPORTS RECORD FOURTH
QUARTER
AND FISCAL YEAR 2009 EARNINGS
AND FISCAL YEAR 2009 EARNINGS
Pleasanton, California, March 18, 2010 -- Ross Stores, Inc. (Nasdaq: ROST) today
reported earnings per share for the 13 weeks ended January 30, 2010 of $1.16, up
53% from $.76 for the 13 weeks ended January 31, 2009. Net earnings for the 13
weeks ended January 30, 2010 grew to a record $142.9 million, up 47% from $97.4
million for the 13 weeks ended January 31, 2009. Sales for the fourth quarter
ended January 30, 2010 grew 14% to $1.980 billion, with comparable store sales
up 10% over the prior year.
For the 52 weeks ended January 30,
2010, earnings per share grew 52% to $3.54, up from $2.33 for the 52 weeks ended
January 31, 2009. Net earnings for the 2009 fiscal year ended January 30, 2010
grew 45% to a record $442.8 million, from $305.4 million for the 2008 fiscal
year ended January 31, 2009. Sales for the 2009 fiscal year increased 11% to
$7.184 billion, with comparable store sales up 6% on top of a 2% gain in the
prior year.
Michael Balmuth, Vice Chairman and Chief
Executive Officer, commented, “We are exceptionally pleased with our outstanding
sales and earnings results for the fourth quarter and full year. During one of
the most challenging economic and retail environments, we not only generated
stronger-than-planned revenues, but did so with record merchandise gross margins
that drove double digit operating profits as a percent of sales. The best
performing merchandise categories for both the quarter and the year were Shoes,
Dresses and Home, while geographic trends were broadbased, with all regions
posting healthy comparable store sales gains for both periods.”
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Mr. Balmuth continued, “Earnings before
interest and taxes for the 2009 fourth quarter grew about 260 basis points to
11.7% of sales, up from 9.1% in the prior year period. This higher profit margin
was mainly due to a 230 basis point improvement in cost of goods sold along with
a 30 basis point decline in selling, general and administrative costs. For the
2009 fiscal year, operating margin increased about 250 basis points over the
prior year to 10.1% of sales, driven by a 230 basis point decline in cost of
goods sold combined with a 20 basis point reduction in selling, general and
administrative expenses. Key drivers of our improved profitability for both the
fourth quarter and the year were much higher merchandise gross margin, lower
shortage costs and leverage on operating expenses from the strong gains in same
store sales.”
“Healthy operating cash flows during the year
continued to provide the resources to make capital investments in new store
growth and infrastructure and fund our ongoing stock repurchase and dividend
programs. During 2009, we repurchased a total of 7.4 million shares of common
stock for an aggregate purchase price of $300 million, completing the two-year
$600 million stock repurchase program announced in early 2008. In January 2010,
our Board of Directors approved a new two-year $750 million stock repurchase
program along with a 45% increase in our quarterly cash dividend to $.16 per
common share. These actions reflect our confidence in the Company’s ongoing
ability to generate healthy amounts of excess cash and our commitment to
enhancing stockholder returns,” Mr. Balmuth said.
Looking ahead to 2010, Mr. Balmuth commented,
“Our past results demonstrate that we can deliver consistent growth in both
healthy and challenging economic climates if we execute our strategies well.
This long-term record gives us the confidence to project strong cash flows from
additional increases in both comparable store sales and earnings per share
during 2010 and beyond.”
The Company will host a conference call on
Thursday, March 18, 2010 at 11:00 a.m. Eastern time to provide additional
details concerning the fourth quarter and fiscal year 2009 results and
management’s outlook and plans for 2010. 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
706-645-9291, ID #55962140 until 8:00 p.m. Eastern time on March 25, 2010, as
well as at the Company’s website address.
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Forward-Looking
Statements: This press release and the recorded conference call on our corporate
website contain forward-looking statements regarding expected sales and earnings
levels 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 industry; changes in the level of consumer spending on or
preferences for apparel or home-related merchandise, including the potential
impact from the macro-economic environment, uncertainty in financial and credit
markets, and changes in geopolitical conditions; unseasonable weather trends;
disruptions in supply chain; 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; our ability to attract and retain
personnel with the retail talent necessary to execute our strategies; our
ability to effectively operate our various supply chain, core merchandising and
other information systems; our ability to improve our merchandising capabilities
through the recent implementation of new processes and systems enhancements;
achieving and maintaining targeted levels of productivity and efficiency in our
distribution centers; and obtaining acceptable new store locations. Other risk
factors are detailed in our SEC filings including, without limitation, the Form
10-K for fiscal 2008, Form 10-Qs for fiscal 2009 and Form 8-Ks for fiscal 2009
and 2010. 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., an S&P 500, Fortune 500
and Nasdaq 100 (ROST) company headquartered in Pleasanton, California, is the
nation’s second largest off-price retailer with fiscal 2009 revenues of $7.2
billion. As of February 27, 2010 the Company operated 953 Ross Dress for
Less® (“Ross”)
stores and 54 dd’s DISCOUNTS® locations, compared to
904 Ross and 53 dd’s DISCOUNTS locations at the end of the same period last
year. 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 percent off department and specialty store regular prices.
dd’s DISCOUNTS features 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 percent off moderate department
and discount store regular prices. Additional information is available at
www.rossstores.com.
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Ross Stores, Inc.
Condensed Consolidated Statements of
Earnings
| Three Months Ended | Twelve Months Ended | ||||||||||||
| January 30, | January 31, | January 30, | January 31, | ||||||||||
| ($000, except stores and per share data, unaudited) | 2010 | 2009 | 2010 | 2009 | |||||||||
| Sales | $ | 1,979,839 | $ | 1,734,112 | $ | 7,184,213 | $ | 6,486,139 | |||||
| Costs and Expenses | |||||||||||||
| Costs of goods sold | 1,462,581 | 1,321,346 | 5,327,278 | 4,956,576 | |||||||||
| Selling, general and administrative | 286,114 | 255,312 | 1,130,813 | 1,034,357 | |||||||||
| Interest expense (income), net | 2,604 | 2,531 | 7,593 | (157 | ) | ||||||||
| Total costs and expenses | 1,751,299 | 1,579,189 | 6,465,684 | 5,990,776 | |||||||||
| Earnings before taxes | 228,540 | 154,923 | 718,529 | 495,363 | |||||||||
| Provision for taxes on earnings | 85,657 | 57,536 | 275,772 | 189,922 | |||||||||
| Net earnings | $ | 142,883 | $ | 97,387 | $ | 442,757 | $ | 305,441 | |||||
| Earnings per share | |||||||||||||
| Basic | $ | 1.18 | $ | 0.77 | $ | 3.60 | $ | 2.36 | |||||
| Diluted | $ | 1.16 | $ | 0.76 | $ | 3.54 | $ | 2.33 | |||||
| Weighted average shares outstanding (000) | |||||||||||||
| Basic | 121,013 | 126,580 | 122,887 | 129,235 | |||||||||
| Diluted | 123,355 | 128,175 | 125,014 | 131,315 | |||||||||
| Dividends | |||||||||||||
| Cash dividends declared per share | $ | 0.270 | $ | 0.205 | $ | 0.490 | $ | 0.395 | |||||
| Stores open at end of period | 1,005 | 956 | 1,005 | 956 | |||||||||
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Ross Stores, Inc.
Condensed Consolidated Balance
Sheets
| January 30, | January 31, | |||||
| ($000, unaudited) | 2010 | 2009 | ||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 768,343 | $ | 321,355 | ||
| Short-term investments | 1,754 | 798 | ||||
| Accounts receivable | 44,234 | 41,170 | ||||
| Merchandise inventory | 872,498 | 881,058 | ||||
| Prepaid expenses and other | 58,618 | 55,241 | ||||
| Deferred income taxes | - | 14,093 | ||||
| Total current assets | 1,745,447 | 1,313,715 | ||||
| Property and equipment, net | 942,999 | 951,656 | ||||
| Long-term investments | 16,848 | 38,014 | ||||
| Other long-term assets | 63,339 | 52,126 | ||||
| Total assets | $ | 2,768,633 | $ | 2,355,511 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ | 658,299 | $ | 536,745 | ||
| Accrued expenses and other | 259,582 | 238,516 | ||||
| Accrued payroll and benefits | 218,234 | 170,878 | ||||
| Income taxes payable | 51,505 | 9,120 | ||||
| Deferred income taxes | 2,894 | - | ||||
| Total current liabilities | 1,190,514 | 955,259 | ||||
| Long-term debt | 150,000 | 150,000 | ||||
| Other long-term liabilities | 174,543 | 156,726 | ||||
| Deferred income taxes | 96,283 | 97,157 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ Equity | 1,157,293 | 996,369 | ||||
| Total liabilities and stockholders’ equity | $ | 2,768,633 | $ | 2,355,511 | ||
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Ross Stores, Inc.
Condensed Consolidated Statements of Cash Flows
| Twelve Months Ended | ||||||||
| January 30, | January 31, | |||||||
| ($000, unaudited) | 2010 | 2009 | ||||||
| Cash Flows From Operating Activities | ||||||||
| Net earnings | $ | 442,757 | $ | 305,441 | ||||
| Adjustments to reconcile net earnings to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation and amortization | 159,043 | 141,802 | ||||||
| Stock-based compensation | 25,746 | 22,575 | ||||||
| Deferred income taxes | 16,113 | 23,804 | ||||||
| Tax benefit from equity issuance | 8,582 | 8,532 | ||||||
| Excess tax benefit from stock-based compensation | (7,291 | ) | (5,973 | ) | ||||
| Change in assets and liabilities: | ||||||||
| Merchandise inventory | 8,560 | 144,237 | ||||||
| Other current assets | (6,441 | ) | (6,089 | ) | ||||
| Accounts payable | 115,893 | (101,682 | ) | |||||
| Other current liabilities | 118,980 | 43,249 | ||||||
| Other long-term, net | 6,442 | 7,543 | ||||||
| Net cash provided by operating activities | 888,384 | 583,439 | ||||||
| Cash Flows From Investing Activities | ||||||||
| Additions to property and equipment | (158,487 | ) | (224,418 | ) | ||||
| Proceeds from sales of property and equipment | 10 | 117 | ||||||
| Purchases of investments | (2,904 | ) | (36,984 | ) | ||||
| Proceeds from investments | 24,548 | 42,522 | ||||||
| Net cash used in investing activities | (136,833 | ) | (218,763 | ) | ||||
| Cash Flows From Financing Activities | ||||||||
| Excess tax benefit from stock-based compensation | 7,291 | 5,973 | ||||||
| Issuance of common stock related to stock plans | 49,393 | 47,873 | ||||||
| Treasury stock purchased | (6,045 | ) | (4,909 | ) | ||||
| Repurchase of common stock | (300,000 | ) | (300,000 | ) | ||||
| Dividends paid | (55,202 | ) | (49,838 | ) | ||||
| Net cash used in financing activities | (304,563 | ) | (300,901 | ) | ||||
| Net increase in cash and cash equivalents | 446,988 | 63,775 | ||||||
| Cash and cash equivalents: | ||||||||
| Beginning of year | 321,355 | 257,580 | ||||||
| End of year | $ | 768,343 | $ | 321,355 | ||||
| Supplemental Cash Flow Disclosures | ||||||||
| Interest paid | $ | 9,668 | $ | 9,676 | ||||
| Income taxes paid | $ | 201,232 | $ | 167,478 | ||||
| Non-Cash Investing Activities | ||||||||
| Increase (decrease) in fair value of investment securities | $ | 1,435 | $ | (2,514 | ) | |||
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