Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Ross Stores Inc., consolidated income statement

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Sales	18,916,244)	12,531,565)	16,039,073)	14,983,541)	14,134,732)	12,866,757)
Cost of goods sold	(13,708,907)	(9,838,574)	(11,536,187)	(10,726,277)	(10,042,638)	(9,173,705)
Gross profit	5,207,337)	2,692,991)	4,502,886)	4,257,264)	4,092,094)	3,693,052)
Selling, general and administrative	(2,874,469)	(2,503,281)	(2,356,704)	(2,216,550)	(2,043,698)	(1,890,408)
Operating earnings	2,332,868)	189,710)	2,146,182)	2,040,714)	2,048,396)	1,802,644)
Interest expense on long-term debt	(88,286)	(88,544)	(13,139)	(17,900)	(18,578)	(18,573)
Interest expense on short-term debt	—)	(7,863)	—)	—)	—)	—)
Other interest expense	(1,351)	(3,908)	(968)	(1,004)	(979)	(1,022)
Capitalized interest	14,476)	12,251)	4,367)	2,497)	710)	26)
Interest expense	(75,161)	(88,064)	(9,740)	(16,407)	(18,847)	(19,569)
Interest income	833)	4,651)	27,846)	26,569)	11,171)	3,081)
Interest income (expense), net	(74,328)	(83,413)	18,106)	10,162)	(7,676)	(16,488)
Earnings before taxes	2,258,540)	106,297)	2,164,288)	2,050,876)	2,040,720)	1,786,156)
Provision for taxes on earnings	(535,951)	(20,915)	(503,360)	(463,419)	(677,967)	(668,502)
Net earnings	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

The financial data demonstrates an overall upward trend in sales over the analyzed periods, with a notable dip in the fiscal year ending January 30, 2021. Sales increased from approximately $12.9 billion in early 2017 to over $18.9 billion by the end of January 2022, despite the interruption in 2021. The cost of goods sold (COGS) follows a similar pattern, increasing consistently but showing a decline corresponding to the drop in sales during 2021, before rising sharply again in 2022.

Gross profit generally increased, reflecting the sales growth, but also dipped markedly in 2021 to around $2.7 billion, the lowest in the period, from a peak of about $4.5 billion the previous year. This indicates a compression in gross margin during that fiscal year, potentially due to either higher costs or reduced sales volume. By 2022, gross profit sharply rebounded to approximately $5.2 billion.

Selling, general, and administrative expenses (SG&A) showed a steady increase from about $1.89 billion in early 2017 to $2.87 billion in 2022, indicative of increased operational costs accompanying growth or inflationary pressures. Despite rising SG&A expenses, operating earnings mostly rose through 2020, peaking at about $2.15 billion, followed by a sharp decline in 2021 to just under $190 million. The subsequent recovery to approximately $2.33 billion in 2022 mirrors the rebound in sales and gross profit.

Interest expenses in total reveal some volatility. Long-term debt interest expense declined gradually through 2020 but increased significantly in 2021 and remained high in 2022, potentially reflecting changes in debt levels or interest rates. Short-term debt interest expense data is only available for 2021 and shows a relatively small outlay. Other interest expenses and capitalized interest increased overall, with capitalized interest growing notably in 2021 and 2022, possibly indicating increased investment in capital projects.

Net interest income (expense) fluctuated significantly, moving from a net expense in 2017 and 2018 to a net positive position in 2019 and 2020, before reverting to a substantial net expense again in 2021 and 2022. This pattern could suggest changes in investment income or debt servicing costs impacting net interest results.

Earnings before taxes (EBT) generally rose from about $1.79 billion in 2017 to over $2.25 billion in 2022, although a significant plunge occurred in 2021, falling to roughly $106 million. This sharp decrease aligns with the downturn in operating earnings, highlighting a considerable impact on profitability for that year.

The provision for taxes on earnings remained relatively stable in absolute terms, except for the fiscal year ending in 2021 when it declined substantially to approximately $21 million, likely a consequence of the much lower pre-tax earnings that year. Net earnings mirrored the trend seen in EBT, increasing from about $1.12 billion in 2017 to roughly $1.72 billion in 2022, but sharply contracting to around $85 million in 2021 before rebounding.

In summary, the financial data indicates consistent growth through 2019 and 2020, followed by a notable downturn across nearly all metrics in 2021, including sales, gross profit, operating earnings, and net earnings. This is succeeded by strong recovery in 2022, surpassing previous high points in several key measures. Increased SG&A expenses and higher interest costs in recent periods suggest elevated operating and financing expenditures accompanying the company's growth and capital investment activities. The 2021 fiscal year appears as an outlier, likely influenced by extraordinary circumstances impacting performance.

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Ross Stores Inc. (NASDAQ:ROST)

Income Statement