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Ross Stores Inc. (NASDAQ:ROST)

This company has been moved to the archive! The financial data has not been updated since December 7, 2022.

Common-Size Income Statement
Quarterly Data

Ross Stores Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Oct 29, 2022 Jul 30, 2022 Apr 30, 2022 Jan 29, 2022 Oct 30, 2021 Jul 31, 2021 May 1, 2021 Jan 30, 2021 Oct 31, 2020 Aug 1, 2020 May 2, 2020 Feb 1, 2020 Nov 2, 2019 Aug 3, 2019 May 4, 2019 Feb 2, 2019 Nov 3, 2018 Aug 4, 2018 May 5, 2018 Feb 3, 2018 Oct 28, 2017 Jul 29, 2017 Apr 29, 2017 Jan 28, 2017 Oct 29, 2016 Jul 30, 2016 Apr 30, 2016
Sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -75.00 -74.18 -73.77 -75.16 -72.71 -70.99 -70.82 -74.29 -72.22 -77.48 -102.57 -73.05 -71.87 -71.46 -71.16 -72.79 -71.76 -71.35 -70.28 -71.85 -71.17 -70.55 -70.47 -72.35 -71.47 -70.79 -70.45
Gross profit (loss) 25.00% 25.82% 26.23% 24.84% 27.29% 29.01% 29.18% 25.71% 27.78% 22.52% -2.57% 26.95% 28.13% 28.54% 28.84% 27.21% 28.24% 28.65% 29.72% 28.15% 28.83% 29.45% 29.53% 27.65% 28.53% 29.21% 29.55%
Selling, general and administrative -15.19 -14.56 -15.45 -15.06 -15.87 -14.94 -14.95 -16.25 -23.38 -19.35 -22.54 -13.64 -15.71 -14.87 -14.70 -14.02 -15.82 -14.84 -14.61 -13.60 -15.54 -14.52 -14.36 -14.07 -15.88 -14.76 -14.14
Operating earnings (loss) 9.81% 11.27% 10.78% 9.78% 11.43% 14.08% 14.23% 9.46% 4.40% 3.17% -25.11% 13.31% 12.42% 13.67% 14.14% 13.19% 12.42% 13.81% 15.10% 14.55% 13.29% 14.93% 15.17% 13.58% 12.65% 14.45% 15.41%
Interest income (expense), net 0.06 -0.23 -0.41 -0.36 -0.41 -0.39 -0.42 -0.45 -0.77 -1.07 -0.36 0.07 0.11 0.12 0.15 0.13 0.08 0.04 0.01 -0.01 -0.05 -0.07 -0.10 -0.11 -0.13 -0.13 -0.14
Earnings (loss) before taxes 9.88% 11.04% 10.37% 9.43% 11.02% 13.69% 13.81% 9.01% 3.64% 2.09% -25.47% 13.38% 12.53% 13.79% 14.29% 13.32% 12.50% 13.85% 15.12% 14.54% 13.24% 14.86% 15.08% 13.48% 12.51% 14.31% 15.26%
(Provision) benefit for taxes on earnings (loss) -2.38 -2.65 -2.56 -2.12 -2.60 -3.40 -3.26 -3.41 -0.14 -1.27 8.87 -3.05 -2.90 -3.42 -3.19 -2.56 -2.97 -3.43 -3.46 -3.46 -4.99 -5.64 -5.37 -4.91 -4.59 -5.45 -5.86
Net earnings (loss) 7.49% 8.39% 7.81% 7.31% 8.42% 10.29% 10.55% 5.60% 3.49% 0.82% -16.60% 10.34% 9.64% 10.37% 11.09% 10.75% 9.53% 10.42% 11.65% 11.08% 8.24% 9.22% 9.71% 8.56% 7.92% 8.86% 9.41%

Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).

The financial performance across the analyzed period demonstrates a high degree of stability from 2016 through early 2020, followed by a severe volatility event in mid-2020 and a subsequent period of gradual margin erosion through 2022.

Gross Profitability Trends
Gross profit margins remained remarkably consistent between 27% and 29% from April 2016 until February 2020. A significant anomaly occurred in May 2020, where the cost of goods sold spiked to 102.57% of sales, resulting in a negative gross profit of -2.57%. While margins recovered to 29.18% by May 2021, a persistent downward trend is observable throughout 2022, with the gross profit margin declining to 25.00% by October 2022.
Operating Expense Management
Selling, general, and administrative (SG&A) expenses typically fluctuated between 13.6% and 15.8% of sales during the stable period. During the 2020 downturn, SG&A as a percentage of sales increased sharply, peaking at 23.38% in October 2020, reflecting the impact of diminished revenue against fixed operational costs. Efficiency returned to historical norms by early 2021, stabilizing around 14% to 15% for the remainder of the period.
Operating and Net Income Stability
Operating earnings generally ranged from 12% to 15% prior to the pandemic shock. The period of extreme volatility in May 2020 saw operating earnings plummet to -25.11%, with net earnings falling to -16.60%. A recovery phase saw net earnings return to 10.55% by May 2021; however, the final four quarters of the data show a steady contraction in net profitability, ending at 7.49% in October 2022.
Tax and Interest Impacts
Interest income and expenses remained negligible as a percentage of sales for the majority of the timeline, though a temporary increase in interest expense was noted during the 2020 recovery period. Tax provisions remained relatively stable as a percentage of sales, typically ranging between 2.1% and 5.8%, except during the May 2020 loss where a tax benefit of 8.87% was recorded.

In summary, the data reveals a business model that was highly predictable until 2020. While the company demonstrated a strong capacity for recovery from the mid-2020 crisis, the trend leading into late 2022 is characterized by compressing gross margins and a corresponding decline in net profit margins.

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