Ross Stores Q2 sales rise 9 percent

REPORT_ Ross Stores reported that its second quarter 2013 sales increased 9 percent

to 2.551 billion dollars, up from 2.341 billion dollars in the second quarter of 2012. Comparable store sales for the 13 weeks ended August 3, 2013 rose 4 percent over the 13 weeks ended August 4, 2012. Sales for the first six months of 2013 increased 8 percent to 5.091 billion dollars, with comparable store sales up 3 percent on top of a robust 8 percent gain for the six months ended July 28, 2012.

Earnings per share stood at 0.98 dollars, up from 0.81 dollars for the 13 weeks ended July 28, 2012. These results represent a 21 percent increase on top of a 27 percent gain in last year's second quarter. Net earnings for the 2013 second quarter grew 17 percent to 213.1 million dollars, up from 182.0 million dollars in the prior year. For the six months ended August 3, 2013, earnings per share were 2.06 dollars, up from 1.74 dollars for the six months ended July 28, 2012. Net earnings for the six months ended August 3, 2013 were 447.7 million dollars, up 15 percent from 390.6 million dollars in the first half of 2012.

Commenting on the results, Michael Balmuth, Vice Chairman and Chief Executive Officer of California-based Ross Stores said, “We are pleased with our better-than-expected results for the second quarter and first six months of 2013, which were mainly driven by above-plan sales and merchandise gross margin. Our performance for both the quarter and year-to-date periods continues to benefit from the solid execution of our core off-price strategy of delivering compelling name brand bargains to today's value-focused consumers.”

For the 52 weeks ending February 1, 2014, the company is now forecasting earnings per share of 3.80 dollars to 3.87 dollars, up from 3.53 dollars for the 53 weeks ended February 2, 2013. On a 52-week basis, the company's updated projection for fiscal 2013 represents estimated EPS growth of 11 percent to 13 percent on top of strong prior year gains of 20 percent and 24 percent, respectively in 2012 and 2011.