Sales Gain, Expense Controls Boost Ross Net Income in Q1
May 20, 2011,
PLEASANTON, Calif.-A healthy sales increase and checks on expenses helped Ross Stores to a 21.5 percent pickup in net income in its first quarter, to $173 million.
Net sales for the quarter, which ended on April 30, finished up 7.2 percent to $2.1 billion, including an increase of 3 percent in same store sales. Gross margin added on 127 basis points to 28.6 percent, thanks to higher merchandise margins and lower occupancy and distribution expenses. Although selling, general and administrative expenses increased by 5 percent in dollars, they were down 32 basis points as a percentage of sales to 14.9 percent, due to reduced store operating costs and in other operating expenses.
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