Ross 2009 Annual Report Download - page 7

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— 5 —
over the long term, as we believe that Ross ultimately can have as many as 1,500
locations and that dd’s DISCOUNTS can grow to approximately 500 stores. That would
represent a doubling of our store base from current levels — an exciting prospect.
Our past results demonstrate that we can deliver solid sales and earnings gains in both
healthy and challenging economic cycles, along with exceptional cash flow and very
strong returns on equity and assets. While our 2009 operating margin is close to historical
records, we believe that current levels of profitability are not only sustainable, but have
the potential for incremental improvement.
As a result, for the longer term we continue to project annual earnings-per-share growth
of 10% to 15%. This projection is based on our forecasts for store growth, comparable
store sales gains, flat to slight improvement in operating margin and excess cash flow
that can be used to fund our dividend and stock repurchase programs.
In closing, we extend our appreciation to all of our customers, business partners and
stockholders for their continued support. We especially want to acknowledge and thank
our more than 45,000 Ross and dd’s DISCOUNTS associates who remain the primary
drivers of our past, present and future success.
Sincerely,
Michael Balmuth
Vice Chairman and Chief Executive Officer
Norman A. Ferber
Chairman of the Board