Ross Stores Inc (ROST) has reported a 10.45 percent rise in profit for the quarter ended Apr. 29, 2017. The company has earned $321.02 million, or $0.82 a share in the quarter, compared with $290.63 million, or $0.73 a share for the same period last year. Revenue during the quarter grew 7.04 percent to $3,306.43 million from $3,089 million in the previous year period. Gross margin for the quarter contracted 2 basis points over the previous year period to 29.53 percent. Total expenses were 84.83 percent of quarterly revenues, up from 84.59 percent for the same period last year. That has resulted in a contraction of 23 basis points in operating margin to 15.17 percent.
Operating income for the quarter was $501.64 million, compared with $475.87 million in the previous year period.
Barbara Rentler, chief executive officer, commented, “We achieved respectable growth in both sales and earnings during the first quarter despite the uncertainty and volatility in the external environment. Operating margin of 15.2% exceeded our expectations due to above-plan sales and merchandise margin.”
For the second-quarter, Ross Stores forecasts revenue to grow in the range of 1 percent to 2 percent. The company expects diluted earnings per share to be in the range of $0.73 to $0.76 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.07 to $3.17.
Operating cash flow improves
Ross Stores Inc has generated cash of $520.84 million from operating activities during the quarter, up 11.03 percent or $51.76 million, when compared with the last year period. The company has spent $76.03 million cash to meet investing activities during the quarter as against cash outgo of $79.77 million in the last year period.
The company has spent $312.19 million cash to carry out financing activities during the quarter as against cash outgo of $240.89 million in the last year period.
Cash and cash equivalents stood at $1,244.22 million as on Apr. 29, 2017, up 36.72 percent or $334.19 million from $910.02 million on Apr. 30, 2016.
Debt remains almost stable
Total debt of Ross Stores Inc remained almost stable for the quarter at $396.61 million, when compared with the last year period. Long-term debt of Ross Stores remained almost stable for the quarter at $396.61 million, when compared with the last year period.
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