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Strong holiday traffic drive Ross Stores Q4 sales
08 Feb '08
4 min read
During fiscal 2007, the Company repurchased 6.9 million shares of common stock for an aggregate purchase price of $200 million, completing its prior two-year $400 million stock repurchase program for 2006 and 2007. For the ten years ending in fiscal 2007, the Company has returned approximately $1.6 billion in capital to stockholders through its stock repurchase programs.
The Board has also approved a 27% increase in the quarterly cash dividend to $.095 per share. The new quarterly dividend is payable on or about March 31, 2008 to stockholders of record as of February 22, 2008. Today's dividend announcement represents the fourteenth consecutive annual increase since the Company initiated its dividend in 1994.
Based on favorable gross margin and expense trends, the Company now estimates that earnings per share for the 13 weeks ended February 2, 2008 will be $.69 to $.70, up from its previous guidance of $.68 to $.69.
For the 52 weeks ended February 2, 2008, earnings per share are estimated to be $1.89 to $1.90. Prior year earnings per share for the 14 and 53 weeks ended February 3, 2007 were $.66 and $1.70, respectively, and included income equivalent to about $.07 per share related to the 53rd week in fiscal 2006.
Mr. Balmuth continued, "As a result of these changes, we have adjusted our longer range earnings model for 2009 and 2010, which now assumes annual unit growth of about 5% to 6% as well as a return to our historical comparable store sales growth rate of about 3%.
Combined with our larger stock repurchase program, these modifications are expected to drive average annual earnings per share gains in the mid-teen percentage range and an increase in return on average equity to over 30% by 2010."
To sum up, Mr. Balmuth said, "We remain confident in our off-price model as the competitive bargains we offer continue to make our stores attractive destinations for customers in both healthy and more challenging economic landscapes. We strongly believe the actions announced will enhance stockholder returns while maximizing our long-term prospects for future growth and profitability."
The Board has also approved a 27% increase in the quarterly cash dividend to $.095 per share. The new quarterly dividend is payable on or about March 31, 2008 to stockholders of record as of February 22, 2008. Today's dividend announcement represents the fourteenth consecutive annual increase since the Company initiated its dividend in 1994.
Based on favorable gross margin and expense trends, the Company now estimates that earnings per share for the 13 weeks ended February 2, 2008 will be $.69 to $.70, up from its previous guidance of $.68 to $.69.
For the 52 weeks ended February 2, 2008, earnings per share are estimated to be $1.89 to $1.90. Prior year earnings per share for the 14 and 53 weeks ended February 3, 2007 were $.66 and $1.70, respectively, and included income equivalent to about $.07 per share related to the 53rd week in fiscal 2006.
Mr. Balmuth continued, "As a result of these changes, we have adjusted our longer range earnings model for 2009 and 2010, which now assumes annual unit growth of about 5% to 6% as well as a return to our historical comparable store sales growth rate of about 3%.
Combined with our larger stock repurchase program, these modifications are expected to drive average annual earnings per share gains in the mid-teen percentage range and an increase in return on average equity to over 30% by 2010."
To sum up, Mr. Balmuth said, "We remain confident in our off-price model as the competitive bargains we offer continue to make our stores attractive destinations for customers in both healthy and more challenging economic landscapes. We strongly believe the actions announced will enhance stockholder returns while maximizing our long-term prospects for future growth and profitability."
Ross Stores Inc
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Pratik Gadia
The Yarn Bazaar - Filosha Infotech Private Limited
Pratik Gadia
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