On May 23, Ross Stores (NASDAQ:ROST) released earnings for the first quarter ended May 5.

  • Earnings climbed 13.2% as the discount retailer earned $67 million.
  • Total sales increased 9.2% to $1.4 billion, although same-store sales were flat.
  • During the quarter, the company repurchased 1.5 million of its common shares.
  • Ross Stores is a two-star stock (out of a possible five) in Motley Fool CAPS.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$1,410.5

$1,291.7

9.2%

Net Profit

$67.0

$59.2

13.2%

EPS

$0.48

$0.41

17.1%

Diluted Shares

139.6

144.2

(3.2%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

24.0%

23.4%

0.6

Operating Margin

7.7%

7.4%

0.3

Net Margin

4.8%

4.6%

0.2

*Expressed in percentage points

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$205.9

$188.3

9.4%

Accounts Rec.

$36.9

$36.0

2.5%

Inventory

$1,101.5

$980.0

12.4%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$919.4

$852.3

7.9%

Long-Term Debt

$150.0

$0.0

N/A

The balance sheet reflects the company's health.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash from Ops

($66.0)

$105.5

N/A

Capital Expenditures

$47.4

$18.0

162.9%

Free Cash Flow

($113.4)

$87.4

N/A

Free cash flow is a Fool's best friend.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Mike Cianciolo held no position in Ross Stores.