Ross Stores Q4 comparable sales decline 6 percent

Ross Stores, Inc. reported earnings of 238 million dollars or 67 cents per share for the fourth quarter. The company’s sales for the quarter were 4.2 billion dollars, with comparable store sales down 6 percent, reflecting the negative impact from the upsurge of Covid-19 during the peak holiday selling season. For the 2020 fiscal year, earnings per share were 24 cents on net income of 85 million dollars, while total sales declined to 12.5 billion dollars.

Commenting on the results, Barbara Rentler, the company’s Chief Executive Officer, said in a statement: “While our fourth quarter sales exceeded our expectations, the upsurge of the virus resulted in lower traffic, especially in California, our largest state, where we were subject to more stringent occupancy and operating hour restrictions.”

Ross Stores provides Q1 guidance and fiscal 2021 outlook

“Comparable store sales for the 13 weeks ending May 1, 2021 are projected to be down 1 percent to down 5 percent compared to the 13 weeks ended May 4, 2019. Earnings per share for the 2021 first quarter are forecast to be 74 cents to 86 cents, reflecting the deleveraging effect from the projected decline in same store sales, increased supply chain costs, higher wages, and ongoing Covid-related expenses,” added Rentler.

Rentler further said: “For fiscal 2021, we expect to add about 60 new locations, consisting of approximately 40 Ross Dress for Less and 20 Dd’s Discounts.”

The company’s board of directors recently authorized the reinstatement of the quarterly cash dividend at a rate of 285 cents per share payable on March 31, 2021 to stockholders of record as of March 16, 2021.

Image: Ross Stores, Facebook