Ross Stores posts rise in sales and earnings

Ross Stores, Inc. reported earnings per share for the 14 weeks ended February 3, 2018 of 1.19 dollars, up from 0.77 dollar in the 13 weeks ended January 28, 2017. Net earnings for the period were 451 million dollars compared to 301 dollars million in the 13 weeks period last year. Sales for the quarter were up 16 percent to 4.1 billion dollars, while comparable store sales rose 5 percent. For the full year, earnings per share grew to 3.55 dollars, compared to 2.83 dollars in the 52 weeks ended January 28, 2017, while net earnings reached 1.4 billion dollars, compared to 1.1 billion dollars last year. Sales in the year grew 10 percent to 14.1 billion dollars, while comparable store sales were up 4 percent.

Commenting on the company’s results, Barbara Rentler, Ross Store’s CEO said in a media release: “Despite our own difficult multi-year comparisons and a very competitive retail climate, sales and earnings were well ahead of our expectations for both the fourth quarter and the full year. While we are encouraged by our recent strong sales and earnings results, we again face our own challenging multi-year comparisons as well as a very competitive retail environment. As a result, although we hope to do better, we continue to take a prudent approach to forecasting our business in 2018.”

Ross Stores projects higher sales and earnings

For the 52 weeks ending February 2, 2019, the company is forecasting same store sales to grow 1 percent to 2 percent on top of 4 percent gains in each of the past three years. The company also plan to open about 100 new stores this year, consisting of 75 Ross Dress for Less and 25 Dd’s Discounts locations. Fiscal 2018 earnings per share are projected to be 3.86 dollars to 4.03 dollars, up from 3.55 dollars for the 53 weeks ended February 3, 2018.

For the 13 weeks ending May 5, 2018, comparable store sales are forecast to be up 1 percent to 2 percent, with earnings per share projected to be 1.03 dollars to 1.07 dollars, up from 0.82 dollar for the first quarter ended April 29, 2017.

“Our fiscal year and first quarter 2018 guidance ranges include a per share benefit of approximately 0.69 and 0.16 dollar, respectively, from the recently enacted tax legislation. In addition, our 2018 ranges reflect our plans to make competitive wage and benefit-related investments, including raising our minimum wage to 11 dollars per hour,” added Rentler.

The company’s board approved a higher quarterly cash dividend of 0.225 dollar per share, up 41 percent over the prior year.

Picture:Ross Stores website