Ross 2015 Annual Report Download - page 6

4 | 2015 Annual Report Ross Stores, Inc.
Strong Cash Flows Fund Growth and Higher Stock Repurchases and Dividends
Operating cash flows in 2015 helped fund new store expansion and additional infrastructure
improvements to support our long-term growth. We invested approximately $370 million of capital
during the year, including about $230 million to open new locations and update existing stores, and
$140 million primarily for distribution and information technology projects. We ended the year with
approximately $763 million in cash and short-term investments and $396 million in long-term debt.
For fiscal 2016, capital expenditures are expected to be approximately $425 million to fund new
store openings, update existing stores as well as make ongoing distribution, and information
technology investments.
During 2015, we repurchased $700 million of common stock, or about 13.7 million shares, under
the two-year $1.4 billion stock repurchase program authorized by our Board of Directors at the
beginning of 2015. Our Board also recently approved an increase in the quarterly cash dividend to
$.135 per share, up 15% on top of an 18% increase in the prior year.
We also effected a two-for-one stock split in the form of a 100% stock dividend paid on June 11, 2015.
The continued growth of our stockholder payouts and our most recent stock split reflect our ongoing
confidence in the Company’s ability to generate future increases in sales and earnings that will yield
significant amounts of cash after funding our growth and the other capital needs of our business.
We have repurchased stock as planned every year since 1993 and have also raised our quarterly
cash dividend annually since its inception in 1994.
Flexible Business Model Enhances Long-Term Profitability
We are pleased with the record sales and earnings results we achieved in 2015 on top of strong
multi-year comparisons. These results reflect the resilience of our off-price business model and are
also a testament to the talented individuals throughout our organization.
Over the long-term, we remain confident about our prospects for respectable sales and earnings
growth. This is based on our belief that the off-price sector will remain a strong-performing segment
of retail, especially given consumers’ ongoing focus on value. Equally important is our proven ability
to maximize our favorable industry position by consistently delivering the exceptional values our
customers have come to expect.
Social Responsibility at Ross
The six Ross Dress for Less stores we opened in Northern California in 1982 have grown into
the largest off-price apparel and home fashion chain in the United States, with 1,274 locations
at the end of 2015. dd’s DISCOUNTS, which we launched in 2004, had 172 stores at year end.
Our success over the past 33 years has been driven by an unwavering commitment to creating
value, with a focus on excellence, ethics and integrity in all we do. This extends far beyond our
mission of offering customers great name brand bargains. It also means enhancing the lives of
almost 78,000 associates by providing a work environment in which they can grow and succeed.
Our greatest assets are the people who work in our stores, distribution centers, and corporate and
buying offices. All of our associates play an integral role in delivering great value to our customers.