Ross Stores Reports Strong Fourth Quarter And Fiscal Year 2012 Results

    Ross Stores Reports Strong Fourth Quarter And Fiscal Year 2012 Results

PR Newswire

PLEASANTON, Calif., March 21, 2013

PLEASANTON, Calif., March 21, 2013 /PRNewswire/ -- Ross Stores, Inc. (Nasdaq:
ROST) today reported earnings per share for the 14 weeks ended February 2,
2013 of $1.07, up from $.85 for the 13 weeks ended January 28, 2012. Net
earnings for the 14 weeks ended February 2, 2013 grew to $236.6 million, up
23% from $192.0 million for the 13 weeks ended January 28, 2012. Sales for the
14 weeks ended February 2, 2013 grew 15% to $2.761 billion. Comparable store
sales for the 13 weeks ended January 26, 2013, rose 5% on top of a 7% increase
in the fourth quarter of 2011.

For the 53 weeks ended February 2, 2013, earnings per share grew to $3.53,
from $2.86 for the 52 weeks ended January 28, 2012. Net earnings for the 53
weeks ended February 2, 2013 grew 20% to $786.8 million, compared to $657.2
million for the 52 weeks ended January 28, 2012. Sales for the 53 weeks ended
February 2, 2013, rose 13% to $9.721 billion. Same store sales for the 52
weeks ended January 26, 2013 grew 6% compared to a 5% gain in 2011.

Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, "We are
pleased with the record sales and earnings we delivered in the fourth quarter
and 2012 fiscal year, especially considering they were achieved on top of
strong multi-year gains. Results for both periods benefited from our ongoing
ability to deliver compelling bargains on a wide assortment of exciting name
brand fashions for the family and the home to today's value-focused

Mr. Balmuth continued, "Earnings before interest and taxes for the 2012 fourth
quarter grew to 13.7% of sales, up from 13.0% in the fourth quarter of 2011.
For fiscal 2012, operating margin rose to a record 13.1%, a gain of 75 basis
points on top of an 85 basis point increase in 2011. Profit margins for both
the quarter and the full year mainly benefited from higher merchandise gross
margin, leverage on operating expenses from the strong gains in same store
sales and the impact of the 53^rd week."

Strong operating cash flows during 2012 continued to provide the resources to
make capital investments in new store growth and infrastructure, as well as
fund the completion of the Company's prior stock repurchase program and
ongoing dividends. A total of 7.5 million shares of common stock were
repurchased during fiscal 2012, for an aggregate purchase price of $450
million, completing the two-year $900 million repurchase program announced in
early 2011. In January 2013, the Company's Board of Directors approved a new
two-year $1.1 billion stock repurchase program as well as a 21% increase in
the regular quarterly cash dividend to $.17 per share.

Mr. Balmuth noted, "The growth of our stock repurchase and dividend programs
has been driven by the significant amounts of cash our business generates
after self-funding store expansion and other capital needs. We have
repurchased stock as planned every year since 1993, and this is the 19th
consecutive increase since initiating our quarterly cash dividend in 1994.
This consistent record reflects our unwavering commitment to enhancing
stockholder value and returns."

Looking ahead, Mr. Balmuth said, "We plan to stay intently focused on our core
off-price mission of consistently delivering great bargains to our customers.
This continues to be the key to maximizing our opportunities for growth in
sales and profits over both the short and the long term."

Discontinuing Monthly Sales Reporting

Beginning with the second quarter of fiscal 2013, the Company will no longer
report monthly sales. Quarterly comparable store sales results will be
provided with regularly scheduled earnings releases and conference calls.

In commenting, Mr. Balmuth said, "Reporting sales quarterly aligns us with the
majority of other retailers who have already adopted this practice, while also
increasing the focus on longer-term performance."

The Company will host a conference call on Thursday, March 21, 2013 at 11:00
a.m. Eastern time to provide additional details concerning the fourth quarter
and fiscal year 2012 results and management's outlook and plans for fiscal
2013. A real-time audio webcast of the conference call will be available in
the Investors section of the Company's website, located at
An audio playback will be available at 404-537-3406, PIN # 22346952 until 8:00
p.m. Eastern time on March 28, 2013, as well as at the Company's website

Forward-Looking Statements: This press release and the recorded comments on
our corporate website contain forward-looking statements regarding expected
sales, earnings levels and other financial results 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 retailing merchandise industry; changes in the level
of consumer spending on or preferences for apparel or home-related
merchandise; impacts from the macro-economic environment and financial and
credit markets that affect consumer disposable income and consumer confidence,
including but not limited tointerest rates, recession, inflation,
deflation,energy costs, tax rates and policy, unemployment trends, and
fluctuating commodity costs; changes in geopolitical and geo-economic
conditions; unseasonable weather trends; potential disruptions in supply chain
or information systems; 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; attracting and retaining personnel
with the retail talent necessary to execute our strategies; effectively
operating and continually upgrading our various supply chain, core
merchandising and other information systems; improving our merchandising and
transaction processing capabilities through the implementation of new
processes and systems enhancements; managing our planned data center and
headquarters moves without disruption or unanticipated costs; obtaining
acceptable new store locations and improving new store sales and
profitability, especially in newer regions and markets; adding capacity to our
existing distribution centers and building out planned additional distribution
centers timely and cost effectively; and achieving and maintaining targeted
levels of productivity and efficiency in our existing and new distribution
centers. Other risk factors are set forth in our SEC filings including without
limitation, the Form 10-K for fiscal 2011, Form 10-Qs for fiscal 2012 and Form
8-Ks for fiscal 2012 and 2013. 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. is an S&P 500, Fortune 500 and Nasdaq 100 (ROST) company
headquartered in Pleasanton, California, with fiscal 2012 revenues of $9.7
billion. The Company operates Ross Dress for Less^® ("Ross"), the largest
off-price apparel and home fashion chain in the United States with 1,091
locations in 33 states, the District of Columbia and Guam at fiscal 2012 year
end. 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% off department and specialty store regular prices. The
Company also operates 108 dd's DISCOUNTS^® in eight states at the end of
fiscal 2012 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 everyday savings of 20% to 70% off moderate department and
discount store regular prices. Additional information is available at

Contact: Michael Hartshorn              Connie Wong
         Senior Vice President,         Director, Investor Relations
         Deputy Chief Financial Officer (925) 965-4668
         (925) 965-4503      

Ross Stores, Inc.
Condensed Consolidated Statements of Earnings
                            Three Months Ended       Twelve Months Ended
                            February 2,  January 28,  February 2,  January 28,
($000, except stores and    2013         2012         2013         2012
per share data, unaudited)
Sales                       $2,760,646   $2,397,878   $9,721,065   $8,608,291
Costs and Expenses
   Costs of goods sold      1,993,661    1,745,034    7,011,428    6,240,760
   Selling, general and     390,003      341,794      1,437,886    1,304,065
   Interest expense, net    946          2,693        6,907        10,322
        Total costs and    2,384,610    2,089,521    8,456,221    7,555,147
Earnings before taxes       376,036      308,357      1,264,844    1,053,144
Provision for taxes on      139,434      116,405      478,081      395,974
Net earnings                $  236,602  $  191,952  $  786,763  $  657,170
Earnings per share ^1
   Basic                    $         $         $         $   
                            1.09        0.86        3.59        2.91
   Diluted                  $         $         $         $   
                            1.07        0.85        3.53        2.86
Weighted average shares
outstanding (000)^1
   Basic                    216,936      222,288      219,130      225,915
   Diluted                  220,508      226,511      222,784      229,982
Dividends ^1
   Cash dividends           $         $         $         $   
   declared per share       0.31        0.25        0.59        0.47
Stores open at end of       1,199        1,125        1,199        1,125
^1All share and per share amounts have been adjusted for the two-for-one
stock split effective December 15, 2011.

Ross Stores, Inc.
Condensed Consolidated Balance Sheets
                                            February 2,  January 28,
($000, unaudited)                           2013         2012
Current Assets
      Cash and cash equivalents             $  646,761  $  649,835
      Short-term investments                1,087        658
      Accounts receivable                   59,617       50,848
      Merchandise inventory                 1,209,237    1,130,070
      Prepaid expenses and other            94,318       87,362
      Deferred income taxes                 20,407       5,598
            Total current assets            2,031,427    1,924,371
Property and equipment, net                 1,493,284    1,241,722
Long-term investments                       4,374        5,602
Other long-term assets                      141,476      129,514
Total assets                                $3,670,561   $3,301,209
Liabilities and Stockholders' Equity
Current Liabilities
      Accounts payable                  $  807,534  $  761,717
      Accrued expenses and other            320,415      304,654
      Accrued payroll and benefits          241,129      248,552
      Income taxes payable                  53,504       31,129
            Total current liabilities       1,422,582    1,346,052
Long-term debt                              150,000      150,000
Other long-term liabilities                 246,815      203,625
Deferred income taxes                       84,301       108,520
Commitments and contingencies
Stockholders' Equity                        1,766,863    1,493,012
Total liabilities and stockholders' equity  $3,670,561   $3,301,209

Ross Stores, Inc.
Condensed Consolidated Statements of Cash Flows
                                                 Twelve Months Ended
                                                 February 2,      January 28,
($000, unaudited)                                2013             2012
Cash Flows From Operating Activities
Net earnings                                     $  786,763      $ 657,170
Adjustments to reconcile net earnings to net
provided by operating activities:
     Depreciation and amortization               185,491          159,892
     Stock-based compensation                    48,952           40,404
     Deferred income taxes                       (39,028)         21,722
     Tax benefit from equity issuance            29,989           19,040
     Excess tax benefit from stock-based         (29,103)         (18,180)
     Change in assets and liabilities:
             Merchandise inventory               (79,167)         (43,153)
             Other current assets                (14,474)         (10,329)
             Accounts payable                    40,109           (11,614)
             Other current liabilities          18,146           (2,109)
             Other long-term, net                31,966           7,262
             Net cash provided by operating      979,644          820,105
Cash Flows From Investing Activities
Additions to property and equipment              (424,434)        (416,271)
Increase in restricted cash and investments      (2,107)          (60,086)
Purchases of investments                         (5,430)          -
Proceeds from investments                        6,247            4,589
             Net cash used in investing          (425,724)        (471,768)
Cash Flows From Financing Activities
Excess tax benefit from stock-based              29,103           18,180
Issuance of common stock related to stock plans  19,043           17,290
Treasury stock purchased                         (29,446)         (15,854)
Repurchase of common stock                       (450,000)        (450,000)
Dividends paid                                   (125,694)        (102,042)
             Net cash used in financing          (556,994)        (532,426)
Net decrease in cash and cash equivalents        (3,074)          (184,089)
Cash and cash equivalents:
             Beginning of year                   649,835          833,924
             End of year                         $  646,761      $ 649,835
Supplemental Cash Flow Disclosures
Interest paid                                    $   9,668     $   9,668
Income taxes paid                                $  435,808      $ 370,074
Non-Cash Investing Activities
(Decrease) increase in fair value of investment  $     (76)  $    226

SOURCE Ross Stores, Inc.

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