Ross 2008 Annual Report Download - page 6

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During 2009, we expect to roll out micro-
merchandising to another 50% of the merchandise
categories in our stores, with the remaining 35% rolled
out in 2010. It is difficult to quantify the benefit from
this new initiative, especially with only 15% of our
merchandise categories on the new platform during
the last six months of fiscal 2008. That said, we remain
confident that over the longer term these new tools will
drive gradual improvement in sales and profitability, not
only in our newer markets but also across the chain.
Resilient and Flexible Off-Price Business Model
Despite the very tough economic and retail climate,
we were able to deliver strong sales and earnings
growth in 2008. More importantly, these gains were
achieved with better-than-expected merchandise gross
margins that enabled us to leverage a 2% increase in
comparable store sales into strong 23% earnings per
share growth for the year. These results, especially
compared to the vast majority of other retailers, reflect
the resilience and flexibility of our off-price business
model when it is executed well.
We remain confident that our ability to deliver
compelling bargains will continue to resonate with an
increasingly value-driven consumer. Our ongoing focus
on efficiently executing our off-price strategies will
remain the key to maximizing our prospects for sales
and earnings growth while optimizing stockholder
returns over both the short and long term.
In Memoriam
In closing, we fondly commemorate the life of our
Founder and Chairman Emeritus Stuart Moldaw,
who passed away in 2008. The indelible legacy of his
vision, strong leadership and countless contributions
will live on through the ongoing success of our
Company. From the original six Ross Dress for Less
stores that were opened in 1982, we have grown
to 956 locations. His early foresight and outstanding
business acumen were instrumental to this growth and
to creating opportunities for the over 40,000 Ross and
dd’s DISCOUNTS associates today.
Finally, we want to acknowledge and thank all
of our business partners, including our associates,
customers, vendors and investors. Their valuable
contributions and commitment to Ross Stores
remain critical drivers of our continued success.
Sincerely,
Michael Balmuth
Vice Chairman, President
and Chief Executive Officer
Norman A. Ferber
Chairman of the Board
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