Ross Stores’ Q1 Gross Margin Rose, but Its Operating Margin Fell

Ross Stores’ (ROST) gross margin grew about 20 basis points on a year-over-year basis to 29.7% in its fiscal first quarter. The company’s gross margin benefited from 30 basis points of higher merchandise margin as well as a decline of 15 basis points in distribution costs resulting from the shift in timing of packaway-related expenses to the fiscal second quarter. Its gross margin also benefited from its leverage of 15 basis points in occupancy costs.