UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report:  May 20, 2003
 
Commission file number  0-14678
 
ROSS STORES, INC.	
(Exact name of registrant as specified in its charter)	
 	 	 	
Delaware	 	94-1390387	
(State or other jurisdiction of incorporation or organization)	 	(I.R.S. Employer Identification No.)	
 	 	 	
8333 Central Avenue, Newark, California	 	94560-3433	
(Address of principal executive offices)	 	(Zip Code)	
 	 	 	
Registrant’s telephone number, including area code	 	(510) 505-4400	
 	 	 	
Former name, former address and former fiscal year, if changed since last report    N/A	

 
Item 7.  Exhibits.
 
Exhibit
No.	 	Description	
 	 	 	
99.1	 	May 20, 2003 Press Release by Ross Stores, Inc.	
 
Item 9.  Regulation FD Disclosure
 
In accordance with Securities and Exchange Commission Release No. 33-8216, the following information, which is intended to be furnished under Item 12, “Results of Operations and Financial Condition,” is instead being furnished under Item 9, “Regulation FD Disclosure.”
 
On May 20, 2003, Ross Stores, Inc. (the “Company”) issued a press release regarding the Company’s financial results for its first fiscal quarter ended May 3, 2003.  The full text of the Company’s press release is attached hereto as Exhibit 99.1.  Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language 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 by the undersigned thereunto duly authorized.

 	ROSS STORES, INC.	
 	Registrant	

Date:   May 20, 2003	/s/  J. Call	
 	John G. Call	
 	Senior Vice President, Chief Financial Officer,
Principal Accounting Officer and Corporate Secretary	
 
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Exhibit 99.1

 
FOR IMMEDIATE RELEASE
 
John G. Call	 	Katie Loughnot	
Senior Vice President,	 	Vice President, Investor Relations	
Chief Financial Officer	 	(510) 505-4509	
(510) 505-4315	 	email: katie.loughnot@ros.com	
 
ROSS STORES REPORTS FIRST QUARTER RESULTS
 
Newark, California, May 20, 2003 —Ross Stores, Inc. (ROST) today reported that earnings per share for the 13 weeks ended May 3, 2003 increased 7% to $.63, from $.59 for the 13 weeks ended May 4, 2002. Net earnings in the first quarter of 2003 were $49.3 million, up from $47.7 million in the prior year period. Sales for the first quarter ended May 3, 2003 increased 7% to $879 million, from $820 million for the quarter ended May 4, 2002. Comparable store sales for the same period declined 3% from the prior year.
 
Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “We are pleased to report that strong inventory and expense controls, as well as the earlier-than-planned opening of several new stores, offset the impact of lower-than-expected revenue on first quarter earnings. External issues, including unseasonable weather trends, the war in Iraq and the lackluster economic climate, negatively affected business during the period. Despite these pressures, however, we were able to show respectable earnings per share growth.”
 
Mr. Balmuth continued, “Expense trends improved during the first quarter, due mainly to lower incentive plan costs, combined with better than planned store payroll and benefit expenses. As a result, a 48 basis point decline in general, selling and administrative expenses as a percent of sales partially offset an 86 basis point decline in gross margin. Operating margin for the first quarter was 9.2% compared to 9.6% in the prior year.”
 
“Consistent with our long-term plan for 12% annual unit growth, we expect to add about 62 stores in 2003. Twenty-three of these new locations opened during the first quarter, including our initial entry into the state of Tennessee. We ended the period with 530 stores in 24 states,” noted Mr. Balmuth.
 
Mr. Balmuth continued, “We remain committed to returning capital to stockholders through our stock repurchase and dividend programs. During the first three months of 2003, we repurchased 1.1 million shares of common stock for an aggregate of $40.7 million under the two-year $300 million program authorized by our Board of Directors in early 2002. We ended the quarter with 76.7 million shares of

 
common stock outstanding and approximately $109 million remaining under this repurchase authorization, which we expect to complete in fiscal 2003.”
 
The Company will provide additional details concerning its first quarter results and business outlook for the balance of 2003 on a conference call to be held on Tuesday, May 20, 2003 at 11:00 a.m. Eastern Daylight Time. Participants may listen to a real time audio webcast of the conference call by visiting the Company’s web site located at www.rossstores.com. A recorded version of the call will also be available until the end of the month at the web site address and via a telephone recording through Tuesday, May 27, 2003 at 402-220-5900, PIN #2342.
 
Forward-Looking Statements: This press release contains certain forward-looking statements regarding expected annual unit growth and new store locations, which are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from management’s current expectations. The words “expect,” “anticipate,” “estimate,” “believe,” “forecast,” “project” and similar expressions identify forward-looking statements. Risk factors include obtaining acceptable new store locations, competitive pressures in the apparel industry, changes in geopolitical and general economic conditions, changes in the level of consumer spending on or preferences in apparel or home-related merchandise and the Company’s ability to successfully implement various new supply chain and merchandising systems in a timely and cost effective manner. Other risk factors are detailed in the Company’s Form 10-K for fiscal 2002. 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 the Company’s outlook at any other point in time. The Company does not undertake to update or revise these forward-looking statements.
 
* * * * *
 
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 530 stores in operation as of May 3, 2003, compared to 470 stores at the end of the same period last year.
 
* * * * *
 
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ROSS STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
 
 	 	Three Months Ended	 	
($000, except per share data, unaudited)	 	May 3,
2003	 	May 4,
2002	 	
 	 	 	 	 	 	
Sales	 	$	879,284	 	$	819,611	 	
 	 	 	 	 	 	
Costs and Expenses	 	 	 	 	 	
Cost of goods sold, including related buying, distribution and occupancy costs	 	653,248	 	601,857	 	
General, selling and administrative	 	145,139	 	139,255	 	
Interest (income) expense	 	(70	)	224	 	
 	 	798,317	 	741,336	 	
 	 	 	 	 	 	
Earnings before income taxes	 	80,967	 	78,275	 	
 	 	 	 	 	 	
Provision for taxes on earnings	 	31,658	 	30,606	 	
Net earnings	 	$	49,309	 	$	47,669	 	
 	 	 	 	 	 	
Earnings per share	 	 	 	 	 	
Basic	 	$	0.64	 	$	0.60	 	
Diluted	 	$	0.63	 	$	0.59	 	
 	 	 	 	 	 	
Weighted average shares outstanding (000)	 	 	 	 	 	
Basic	 	77,052	 	78,865	 	
Diluted	 	78,254	 	80,585	 	
 	 	 	 	 	 	
Stores open end of period	 	530	 	470	 	
 
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ROSS STORES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
 
($000, unaudited)	 	May 3,
2003	 	May 4,
2002	 	
 	 	 	 	 	 	
Current Assets	 	 	 	 	 	
Cash and cash equivalents	 	$	116,544	 	$	72,630	 	
Accounts receivable	 	23,260	 	24,464	 	
Merchandise inventory	 	756,002	 	674,033	 	
Other current assets	 	48,563	 	26,940	 	
Total Current Assets	 	$	944,369	 	$	798,067	 	
 	 	 	 	 	 	
Property and equipment, net	 	415,552	 	344,623	 	
Other long-term assets	 	39,833	 	38,984	 	
 	 	$	1,399,754	 	$	1,181,674	 	
 	 	 	 	 	 	
LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	
 	 	 	 	 	 	
Current Liabilities	 	 	 	 	 	
Accounts payable, accrued expenses and other	 	$	591,635	 	$	535,966	 	
Income taxes payable	 	30,580	 	30,568	 	
Total Current Liabilities	 	$	622,215	 	$	566,534	 	
 	 	 	 	 	 	
Long-term debt	 	50,000	 	—	 	
Other liabilities	 	45,302	 	43,675	 	
Deferred income taxes	 	25,021	 	7,646	 	
 	 	 	 	 	 	
Stockholders’ Equity	 	657,216	 	563,819	 	
 	 	$	1,399,754	 	$	1,181,674	 	
 
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ROSS STORES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 	 	Three Months Ended	 	
($000, unaudited)	 	May 3,
2003	 	May 4,
2002	 	
 	 	 	 	 	 	
CASH FLOWS FROM OPERATING ACTIVITIES	 	 	 	 	 	
Net earnings	 	$	49,309	 	$	47,669	 	
Adjustments to reconcile net earnings to net cash provided by operating activities:	 	 	 	 	 	
Depreciation and amortization of property and equipment	 	13,965	 	12,861	 	
Other amortization	 	3,649	 	3,082	 	
Change in assets and liabilities:	 	 	 	 	 	
Merchandise inventory	 	(39,484	)	(50,643	)	
Other current assets - net	 	(16,570	)	(154	)	
Accounts payable	 	3,493	 	51,536	 	
Other current liabilities	 	(2,921	)	33,211	 	
Other	 	120	 	(3,050	)	
Net cash provided by operating activities	 	11,561	 	94,512	 	
 	 	 	 	 	 	
CASH FLOWS USED IN INVESTING ACTIVITIES	 	 	 	 	 	
Additions to property and equipment	 	(27,419	)	(27,260	)	
Net cash used in investing activities	 	(27,419	)	(27,260	)	
 	 	 	 	 	 	
CASH FLOWS USED IN FINANCING ACTIVITIES	 	 	 	 	 	
Proceeds from long-term debt	 	25,000	 	—	 	
Issuance of common stock related to stock plans	 	1,879	 	10,841	 	
Repurchase of common stock	 	(40,677	)	(42,075	)	
Dividends paid	 	(4,449	)	(3,739	)	
Net cash used in financing activities	 	(18,247	)	(34,973	)	
Net (decrease) increase in cash and cash equivalents	 	(34,105	)	32,279	 	
Cash and cash equivalents:	 	 	 	 	 	
Beginning of period	 	150,649	 	40,351	 	
End of period	 	$	116,544	 	$	72,630	 	
 
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