Sales Gain, Expense Controls Boost Ross Net Income in Q1

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.

Michael Balmuth, Ross' vice chairman and CEO, noted that the retailer posted these gains on top of some difficult comparisons from last year's first quarter. In that time frame, Ross' net income jumped 56 percent, net sales were up 14 percent and same-store sales rose 10 percent.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money