Ross Stores Q1 earnings up 7 percent

Ross Stores reported earnings per share for the 13 weeks ended May 3, 2014 of 1.15 dollars, up from 1.07 dollars for the 13 weeks

ended May 4, 2013. These results represent a 7 percent increase on top of 15 percent and 26 percent gains in the first quarters of 2013 and 2012, respectively. First quarter 2014 sales increased 6 percent to 2.681 billion dollars, up from 2.540 billion dollars in the first quarter of 2013. Comparable store sales rose 1 percent on top of 3 percent and 9 percent gains in the first quarters of 2013 and 2012, respectively.

Elaborating on the results, Michael Balmuth, Vice Chairman and Chief Executive Officer, said, “First quarter earnings per share performed at the high end of our guidance as strict inventory and expense controls offset the impact from unfavorable weather and a more challenging retail environment. Sales trends improved in April with more seasonal spring weather that coincided with the later Easter shopping period. Operating margin for the quarter was better than forecasted, declining 25 basis points to 14.6 percent.”

Looking ahead, Balmuth added, “For the 13 weeks ending August 2, 2014, we are forecasting same store sales to increase 1 percent to 2 percent on top of 4 percent and 7 percent gains in the second quarters of 2013 and 2012, respectively. Earnings per share for the 2014 second quarter are projected to be in the range of 1.05 dollars to 1.09 dollars, up from 0.98 dollars last year. Based on our first quarter results and guidance for the second quarter, we now project earnings per share for the 52 weeks ending January 31, 2015 to be in the range of 4.09 dollars to 4.21 dollars, compared to 3.88 dollars for the 52 weeks ended February 1, 2014.”