Ross Stores (ROST)

Selling, general and administrative expenses as a percentage of sales for the three month period ended May 2, 2009 grew by approximately 15 basis points over the same period in the prior year. This increase was primarily the result of the 30 basis point benefit in the prior year’s first quarter related to a gain recognized from a lease settlement. Without that benefit, the first three months of 2009 had a combined 15 basis point decrease in store operating and general and administrative costs as a percent of sales versus the prior year period.

SG&A as a percentage of sales for fiscal 2008 grew by approximately 30 basis points over the prior year. This increase was mainly driven by a 20 basis point increase in store operating expenses and a 10 basis point increase in general and administrative costs as a percent of sales.

For fiscal 2007, SG&A increased $72.9 million compared to the same period in the prior year, mainly due to increased store operating costs reflecting the opening of 93 net new stores during the year.

SG&A as a percentage of sales for fiscal 2007 grew by approximately 15 basis points over the prior year. This increase was mainly driven by a 40 basis point rise in store operating expenses. Store operating costs in 2007 were impacted by minimum wage increases and the de-leveraging effect of the 1% gain in comparable store sales. These cost pressures were partially offset by a 25 basis point decline in other general and administrative costs.

The largest component of SG&A is payroll. The total number of employees, including both full and part-time, as of fiscal year end 2008, 2007, and 2006 was approximately 40,000, 39,100, and 35,800, respectively.

SG&A as a percentage of sales
for fiscal 2008 grew by approximately 30 basis points over the prior year. This
increase was mainly driven by a 20 basis point increase in store operating
expenses and a 10 basis point increase in general and administrative costs as a
percent of sales.

For fiscal 2007, SG&A
increased $72.9 million compared to the same period in the prior year, mainly
due to increased store operating costs reflecting the opening of 93 net new
stores during the year.

SG&A as a percentage of sales
for fiscal 2007 grew by approximately 15 basis points over the prior year. This
increase was mainly driven by a 40 basis point rise in store operating expenses.
Store operating costs in 2007 were impacted by minimum wage increases and the
de-leveraging effect of the 1% gain in comparable store sales. These cost
pressures were partially offset by a 25 basis point decline in other general and
administrative costs.

The largest component of SG&A
is payroll. The total number of employees, including both full and part-time, as
of fiscal year end 2008, 2007, and 2006 was approximately 40,000, 39,100, and
35,800, respectively.

Selling, general and administrative expenses as a percentage of sales for the three months ended November 1, 2008 grew by approximately 60 basis points over the same period in the prior year. This change was primarily driven by a 45 basis point increase in store operating expenses. In addition, the third quarter of 2007 benefited about 25 basis points from a construction-related settlement at one of our distribution facilities. These negative trends were partially offset by a 10 basis point improvement in general and administrative costs compared to the prior year.

For the nine months ended November 1, 2008, selling, general and administrative expenses increased $80.7 million compared to the same period in the prior year, mainly due to increased store operating costs reflecting the opening of 70 net new stores between November 3, 2007 and November 1, 2008.

Selling, general and administrative expenses as a percentage of sales for the nine months ended November 1, 2008 increased by approximately 25 basis points from the same period in the prior year driven mainly by store operating costs.

Selling, general and administrative expenses as a percentage of sales for the three months ended August 2, 2008 grew by approximately 50 basis points compared to the same period in the prior year. This increase was primarily due to higher general and administrative expenses which were impacted by a combination of higher accrued incentive plan costs and the prior year comparison. The second quarter of 2007 benefited by about 25 basis points from insurance proceeds and lower legal settlement costs.

For the six months ended August 2, 2008, selling, general and administrative expenses increased $57.0 million compared to the same period in the prior year, mainly due to increased store operating costs reflecting the opening of 81 net new stores between August 4, 2007 and August 2, 2008.

Selling, general and administrative expenses as a percentage of sales for the six months ended August 2, 2008 increased by approximately 10 basis points from the same period in the prior year. This was mainly the result of a 10 basis point increase in store operating costs.

Selling, general and administrative expenses as a percentage of sales for the three months ended May 3, 2008 decreased by approximately 40 basis points compared to the same period in the prior year. This improvement was driven by a 30 basis point benefit from a gain recognized in the quarter related to a lease settlement, and a 30 basis point decline in other general and administrative costs, partially offset by a 20 basis point increase in store operating expenses compared to the same period in the prior year.

SG&A as a percentage of sales for fiscal 2007 grew by approximately 15 basis points over the prior year. This increase was mainly driven by a 40 basis point rise in store operating expenses compared to fiscal 2006, which benefited from leverage related to the 53^rd week. Store operating costs in 2007 were also impacted by minimum wage increases and the de-leveraging effect of the 1% gain in comparable store sales. These cost pressures were partially offset by a 25 basis point decline in other general and administrative costs.

For fiscal 2006, SG&A increased $96.9 million compared to the same period in the prior year, mainly due to increased store operating costs reflecting the opening of 63 net new stores during the year.

For fiscal 2006, SG&A as a percentage of sales was unchanged compared to the same period in the prior year. An approximately 15 basis point increase in expense related to SFAS No. 123(R) and a 5 basis point increase in store related expenses were offset by a 20 basis point decrease in other general and administrative costs related to lower workers’ compensation costs and leverage on the 53^rd week of operations in fiscal 2006.

The largest component of SG&A is payroll. The total number of employees, including both full and part-time, as of fiscal year end 2007, 2006, and 2005 was approximately 39,100, 35,800, and 33,200, respectively.

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SG&A as a percentage of sales
for fiscal 2007 grew by approximately 15 basis points over the prior year. This
increase was mainly driven by a 40 basis point rise in store operating expenses
compared to fiscal 2006, which benefited from leverage related to the
53^rd week. Store operating costs in 2007 were also impacted by
minimum wage increases and the de-leveraging effect of the 1% gain in comparable
store sales. These cost pressures were partially offset by a 25 basis point
decline in other general and administrative costs.

For fiscal 2006, SG&A
increased $96.9 million compared to the same period in the prior year, mainly
due to increased store operating costs reflecting the opening of 63 net new
stores during the year.

For fiscal 2006, SG&A as a
percentage of sales was unchanged compared to the same period in the prior year.
An approximately 15 basis point increase in expense related to SFAS No. 123(R)
and a 5 basis point increase in store related expenses were offset by a 20 basis
point decrease in other general and administrative costs related to lower
workers’ compensation costs and leverage on the 53^rd week of
operations in fiscal 2006.

The largest component of SG&A
is payroll. The total number of employees, including both full and part-time, as
of fiscal year end 2007, 2006, and 2005 was approximately 39,100, 35,800, and
33,200, respectively.

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