- Prachi Singh |
Ross Stores, Inc. reported earnings per share for the 13 weeks ended February 1, 2020 grew 7 percent to 1.28 dollars on net income of 456 million dollars. Sales for the quarter were 4.4 billion dollars, with comparable store sales up 4 percent on top of a 4 percent gain in the prior year period. For the 2019 fiscal year, earnings per share increased 8 percent to 4.60 dollars compared to 4.26 dollars in the prior year, while net income for the period was 1.7 billion dollars, up from 1.6 billion dollars last year. Net sales grew 7 percent to 16 billion dollars, with same store sales up 3 percent on top of a 4 percent gain last year.
Commenting on the company’s performance, Barbara Rentler, Ross Stores’ Chief Executive Officer, said in a statement: “We delivered strong sales and earnings growth for both the fourth quarter and fiscal year. Fourth quarter operating margin of 13.3 percent was slightly better than expected, driven by higher merchandise margin. As we enter 2020, we continue to face our own strong long-term sales and earnings results plus ongoing uncertainty in the macro-economic, political, and retail landscapes. Therefore, while we hope to do better, we believe it is prudent to maintain a somewhat cautious outlook when projecting our performance for the coming year.”
Ross Stores expects full year same-store sales growth of 1 to 2 percent
For the 52 weeks ending January 30, 2021, the company is planning same store sales to grow 1 percent to 2 percent and earnings per share of 4.67 dollars to 4.88 dollars. The company also plans to open about 100 stores this year, consisting of approximately 75 Ross Dress for Less and 25 Dd’s Discounts locations.
For the first quarter ending May 2, 2020, comparable store sales are forecast to be up 1 percent to 2 percent with earnings per share projected to be 1.16 dollars to 1.21 dollars versus 1.15 dollars for the first quarter ended May 4, 2019.
“Our guidance does not reflect the potential unknown impacts from the evolving coronavirus outbreak. While we are closely monitoring the situation, there remains a high level of uncertainty over supply chain disruptions in China. In addition, it is unclear how a further possible spread of the coronavirus could negatively impact U.S. consumer demand,” added Rentler.
Picture:Ross Stores website