Ross Stores Q3 net sales up 6 percent

REPORT_ Ross Stores’ fiscal 2013 third quarter sales

increased 6 percent to 2.398 billion dollars, with comparable store sales rise of 2 percent on top of a 6 percent gain in the prior year. It reported earnings per share for the 13 weeks ended November 2, 2013 of 0.80 dollars, up from 0.72 dollars for the 13 weeks ended October 27, 2012. These results reflect an 11 percent increase on top of a 14 percent gain in the third quarter of 2012. Net earnings for the third quarter ended November 2, 2013 were 171.6 million dollars, up from 159.5 million dollars for the third quarter ended October 27, 2012.

Pleasanton, California headquartered company, for nine months ended November 2, 2013 reported earnings per share of 2.86 dollars, up from 2.46 dollars for the nine months ended October 27, 2012. These results represent 16 percent growth versus 22 percent for the first nine months of 2012. Net earnings for the 2013 year-to-date period grew to 619.4 million dollars, up from 550.2 million dollars in the prior year. Sales for the first nine months of 2013 increased 8 percent to 7.489 billion dollars, with comparable store sales up 3 percent on top of a 7 percent gain for the first nine months of 2012.

Michael Balmuth, Vice Chairman and Chief Executive Officer, opined that the third quarter sales were in line with company’s guidance, while earnings were better-than-expected mainly due to above-plan merchandise gross margin. “Operating margin of 11.3 percent was relatively flat to last year. As a percent of sales, an improvement in cost of goods sold was offset by an increase in selling, general and administrative expenses,” Balmuth added.

For the 13 weeks ending February 1, 2014, the company is now projecting comparable store sales to be up 1 percent to 2 percent on top of a 5 percent increase in last year's fourth quarter. Earnings per share are forecast to be 0.97 dollars to 1.01 dollars, compared to 1.07 dollars for the 14 weeks ended February 2, 2013. For the 52 weeks ending February 1, 2014, earnings per share are now projected to be 3.83 dollars to 3.87 dollars, up from 3.53 dollars for the 53 weeks ended February 2, 2013. The 53rd week in 2012 added approximately 0.10 dollars to last year's fourth quarter and fiscal year earnings per share.