Ross Stores Inc. (ROST, Financial) filed Quarterly Report for the period ended 2008-11-01.
Ross Stores Inc. operates a chain of off-price retail apparel and home accessories stores which target value conscious men and women between the ages of 25 and 54 in middle-to-upper middle income households. The decisions of the company from merchandising purchasing and pricing to the location of its stores are aimed at this customer base. The company offers brand name and designer merchandise at low everyday prices generally below regular prices of most department and specialty stores. Ross Stores Inc. has a market cap of $3.86 billion; its shares were traded at around $27.96 with a P/E ratio of 12.86 and P/S ratio of 0.65. The dividend yield of Ross Stores Inc. stocks is 1.3%. Ross Stores Inc. had an annual average earning growth of 8.6% over the past 10 years. GuruFocus rated Ross Stores Inc. the business predictability rank of 4.5-star.
During the nine month periods ended November 1, 2008 and November 3, 2007, our capital expenditures were approximately $175.5 million and $176.8 million, respectively. Our capital expenditures included fixtures and leasehold improvements to open new stores, implement information technology systems, build distribution centers and install material handling equipment and related distribution center systems, and various other expenditures related to our stores, buying and corporate offices. We opened 77 and 98 new stores on a gross basis during the nine months ended November 1, 2008 and November 3, 2007, respectively.
In addition, for the nine months ended November 1, 2008 and November 3, 2007, we purchased investments of $32.9 million and $63.2 million, respectively, and sold investments of $33.8 million and $61.2 million, respectively.
Under our $600.0 million two-year stock repurchase program announced in January 2008, we repurchased 7.0 million shares of common stock for an aggregate purchase price of approximately $231.4 million during the nine month period ended November 1, 2008. We repurchased 5.0 million shares of common stock for approximately $152.6 million during the nine month period ended November 3, 2007.
Senior notes. We have a Note Purchase Agreement with various institutional investors for $150.0 million of unsecured, senior notes. The notes were issued in two series and funding occurred in December 2006. The Series A notes, issued for an aggregate of $85.0 million, are due in December 2018, and bear interest at a rate of 6.38%. The Series B notes, issued for an aggregate of $65.0 million, are due in December 2021, and bear interest at a rate of 6.53%. Interest on these notes is included in interest payment obligations in the table above.
We lease a 1.3 million square foot distribution center in Perris, California. The land and building for this distribution center are financed under a $70 million ten-year synthetic lease that expires in July 2013. Rent expense on this center is payable monthly at a fixed annual rate of 5.8% on the lease balance of $70 million. At the end of the lease term, we have the option to either refinance the $70 million synthetic lease facility, purchase the distribution center at the amount of the then-outstanding lease obligation, or arrange a sale of the distribution center to a third party. If the distribution center is sold to a third party for less than $70 million, we have agreed under a residual value guarantee to pay the lessor any shortfall amount up to $56 million. Our contractual obligation of $56 million is included in Other synthetic lease obligations in the above table.
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More on ROST:
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10-year financial history of ROST.
Insider buys/sells of ROST.
Ross Stores Inc. operates a chain of off-price retail apparel and home accessories stores which target value conscious men and women between the ages of 25 and 54 in middle-to-upper middle income households. The decisions of the company from merchandising purchasing and pricing to the location of its stores are aimed at this customer base. The company offers brand name and designer merchandise at low everyday prices generally below regular prices of most department and specialty stores. Ross Stores Inc. has a market cap of $3.86 billion; its shares were traded at around $27.96 with a P/E ratio of 12.86 and P/S ratio of 0.65. The dividend yield of Ross Stores Inc. stocks is 1.3%. Ross Stores Inc. had an annual average earning growth of 8.6% over the past 10 years. GuruFocus rated Ross Stores Inc. the business predictability rank of 4.5-star.
Highlight of Business Operations:
Earnings per share. Diluted earnings per share for the three months ended November 1, 2008 were $0.44 compared to $0.36 in the prior year period. The 22% increase in diluted earnings per share is attributable to an 18% increase in net earnings and a 4% reduction in weighted average diluted shares outstanding primarily due to the repurchase of common stock under our stock repurchase program. Diluted earnings per share for the nine months ended November 1, 2008 were $1.57 compared to $1.21 in the prior year period. The 30% increase in diluted earnings per share is attributable to a 25% increase in net earnings and a 4% reduction in weighted average diluted shares outstanding primarily due to the repurchase of common stock under our stock repurchase program.During the nine month periods ended November 1, 2008 and November 3, 2007, our capital expenditures were approximately $175.5 million and $176.8 million, respectively. Our capital expenditures included fixtures and leasehold improvements to open new stores, implement information technology systems, build distribution centers and install material handling equipment and related distribution center systems, and various other expenditures related to our stores, buying and corporate offices. We opened 77 and 98 new stores on a gross basis during the nine months ended November 1, 2008 and November 3, 2007, respectively.
In addition, for the nine months ended November 1, 2008 and November 3, 2007, we purchased investments of $32.9 million and $63.2 million, respectively, and sold investments of $33.8 million and $61.2 million, respectively.
Under our $600.0 million two-year stock repurchase program announced in January 2008, we repurchased 7.0 million shares of common stock for an aggregate purchase price of approximately $231.4 million during the nine month period ended November 1, 2008. We repurchased 5.0 million shares of common stock for approximately $152.6 million during the nine month period ended November 3, 2007.
Senior notes. We have a Note Purchase Agreement with various institutional investors for $150.0 million of unsecured, senior notes. The notes were issued in two series and funding occurred in December 2006. The Series A notes, issued for an aggregate of $85.0 million, are due in December 2018, and bear interest at a rate of 6.38%. The Series B notes, issued for an aggregate of $65.0 million, are due in December 2021, and bear interest at a rate of 6.53%. Interest on these notes is included in interest payment obligations in the table above.
We lease a 1.3 million square foot distribution center in Perris, California. The land and building for this distribution center are financed under a $70 million ten-year synthetic lease that expires in July 2013. Rent expense on this center is payable monthly at a fixed annual rate of 5.8% on the lease balance of $70 million. At the end of the lease term, we have the option to either refinance the $70 million synthetic lease facility, purchase the distribution center at the amount of the then-outstanding lease obligation, or arrange a sale of the distribution center to a third party. If the distribution center is sold to a third party for less than $70 million, we have agreed under a residual value guarantee to pay the lessor any shortfall amount up to $56 million. Our contractual obligation of $56 million is included in Other synthetic lease obligations in the above table.
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Gurus who own ROST
ROST is in the portfolios of Richard Aster Jr, Joel Greenblatt.More on ROST:
Gurus buys and sells of ROST
10-year financial history of ROST.
Insider buys/sells of ROST.
