NEWARK, Calif., March 16 /PRNewswire/ -- Ross Stores, Inc. (Nasdaq: ROST)
today reported record earnings for both the fourth quarter and fiscal year
ended January 30, 1999.  Net earnings for the 13 weeks ended January
30, 1999 totaled $45.6 million, compared to $40.7 million for the 13 weeks
ended January 31, 1998.  Earnings per share on a diluted basis for the fourth
quarter of 1998 increased 17% to $.97, compared to $.83 per share for the
fourth quarter of 1997.
    For the 52 weeks ended January 30, 1999, net earnings totaled
$133.8 million, compared to $117.5 million for the 52 weeks ended
January 31, 1998.  Earnings per share on a diluted basis for the 1998 fiscal
year increased 19% to $2.80, from $2.35 per share in fiscal 1997.
    For the 13 weeks ended January 30, 1999, sales increased 10% to
$630.0 million, compared to $572.3 million for the 13 weeks ended January 31,
1998.  Comparable store sales for the fourth quarter increased 3%, on top of a
7% gain for the same period last year.  Sales for the 52 weeks ended January
30, 1999 increased 10% to $2.182 billion, compared to $1.989 billion for the
52 weeks ended January 31, 1998.  Comparable store sales increased 3%, on top
of a 10% increase for the same period last year.
    In commenting on these results, Vice Chairman and Chief Executive Officer
Michael Balmuth stated, "We are pleased with the solid gains we achieved in
both sales and earnings during fiscal 1998, especially considering the record
increases reported over the past two years.  Earnings per share grew 49% in
1997 on top of an 82% increase in 1996, and comparable store sales increased
10% and 13%, respectively, in 1997 and 1996.  Our focus on offering customers
an increasingly wide assortment of recognizable brands at large discounts,
combined with our ability to effectively manage both inventories and expenses,
have been the key drivers of our performance."
    Mr. Balmuth continued, "Operating income for fiscal 1998 benefited from a
43 basis point increase in gross margin, driven by a combination of improved
merchandise margins and leverage on occupancy.  This improvement was partially
offset by a 22 basis point increase in general, selling and administrative
expenses, due mainly to about $4.0 million in non-recurring expenses related
to the company's Year 2000 compliance program.  As a result, operating margin
in fiscal 1998 grew to a record 10.1%, up from 9.8% in 1997 and almost double
the 5.2% we realized in 1995."
    In commenting on the company's financial position, Mr. Balmuth said,
"Strong cash flows have enabled the company to internally fund store growth,
repurchase stock, increase our dividend pay-outs and end the year with no debt
on the balance sheet.  Return on average stockholders' equity was 33% in 1998,
benefiting from the solid growth in earnings and the repurchase of 2.8 million
shares during the year at an aggregate cost of $110 million.  In addition, on
January 28, 1999, the Board of Directors approved a $120 million repurchase
program for the current year and an 18% increase in the quarterly cash
dividend payment.  These actions reflect our ongoing commitment to enhancing
stockholder returns."
    In conclusion, he stated, "Looking ahead, we continue to see opportunities
to grow the business by continuing to fine-tune and effectively execute the
strategies that have contributed to our record-breaking financial results
-- ongoing investments in our merchandise organization and systems, further
diversification of our product assortments, strict management of inventories
and expenses, and focused store growth over the next couple of years,
primarily in existing states."
    Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995:  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 include competitive pressures in the apparel industry, changes in the
level of consumer spending on or preferences in apparel or home-related
merchandise, obtaining acceptable store locations, the company's ability to
continue to purchase attractive name brand merchandise at desirable discounts,
unseasonable weather trends, and larger than planned operating costs including
those that could be related to necessary modifications to the company's
computer hardware and software systems to enable them to process information
with dates or date ranges spanning the year 2000 and beyond. Other risk
factors are detailed in the company's Form 10-K for fiscal 1998.
    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 349 stores in operation January 30, 1999,
compared to 325 stores at the end of the same period last year.

                              ROSS STORES, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

                           Three Months Ended          Twelve Months Ended
                       January 30,   January 31,  January 30,   January 31,
    ($000, except
     per share data,
     unaudited)            1999        1998           1999          1998

    Sales                 $629,971      $572,297   $2,182,361    $1,988,692

    Costs and Expenses
     Cost of goods sold
      and occupancy        439,423       402,511    1,513,889     1,388,098
     General, selling
      and administrative   107,279        93,819      415,284       374,119
     Depreciation and
      amortization           8,749         8,175       33,514        30,951
     Interest (income)
      expense                (200)            12          259         (265)
                           555,251       504,517    1,962,946     1,792,903

    Earnings before
     income taxes           74,720        67,780      219,415       195,789
    Provision for taxes
     on earnings            29,141        27,112       85,572        78,315
    Net earnings           $45,579       $40,668     $133,843      $117,474

    Earnings per share
     Basic                   $0.99         $0.85        $2.85         $2.40
     Diluted                 $0.97         $0.83        $2.80         $2.35

    Weighted average
     shares outstanding
      Basic                 46,105        47,743       47,035        48,928
      Diluted               46,792        48,775       47,850        50,002

    Stores open end
     of period                 349           325          349           325

                              ROSS STORES, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                  January 30,             January 31,
    ($000, unaudited)                1999                    1998

    ASSETS

    Current Assets
     Cash and cash equivalents      $80,083                 $56,369
     Accounts receivable             11,566                   8,122
     Merchandise inventory          466,460                 418,825
     Other current assets            15,825                  15,108
      Total Current Assets         $573,934                $498,424

     Property and equipment, net    248,712                 204,721
     Lease rights, deferred
      income taxes and
      other assets                   47,660                  34,808
                                   $870,306                $737,953

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities
     Accounts payable, accrued
      expenses and other           $403,139                $323,746
     Total Current
      Liabilities                  $403,139                $323,746

    Other liabilities                42,464                  33,526

    Stockholders' Equity            424,703                 380,681
                                   $870,306                $737,953


SOURCE  Ross Stores, Inc.