Ross Stores beats earnings, sales estimates in strong quarter; lifts outlook
Not even hurricanes could keep fast-growing Ross Stores down in the third quarter.
The off-price retailer earned $274.4 million, or 72 cents a share, in the quarter ended Oct. 28, compared with $244.5 million, or 62 cents a share, in the year-ago period. Analysts had expected adjusted earnings of 67 cents.
Sales rose 8% to $3.33 billion, exceeding the projected $3.26 billion. Same-store sales increased 4%.
“Our third quarter sales and earnings outperformed our expectations despite being up against our toughest prior year comparisons and two major hurricanes during the quarter," said CEO Barbara Rentler. "Operating margin of 13.3% was better-than-expected, mainly due to a combination of higher merchandise margin and leverage on above-plan sales.”
Given its better-than-expected trends in the third quarter, Ross raised its sales expectations for the fourth quarter. Comparable-store sales are now forecast to increase 2% to 3% versus a 4% gain last year. Earnings per share are projected to be $.88 to $.92, up from $.77 in the prior year period.
"Based on this updated guidance and our year-to-date results, we are now planning earnings per share for fiscal 2017 to be in the range of $3.24 to $3.28," Rentler said.
As of Oct. 28, Ross operates 1, 414 Ross Dress for Less stores in 37 states, the District of Columbia and Guam, and 215 dd’s Discounts stores in 16 states.
The off-price retailer earned $274.4 million, or 72 cents a share, in the quarter ended Oct. 28, compared with $244.5 million, or 62 cents a share, in the year-ago period. Analysts had expected adjusted earnings of 67 cents.
Sales rose 8% to $3.33 billion, exceeding the projected $3.26 billion. Same-store sales increased 4%.
“Our third quarter sales and earnings outperformed our expectations despite being up against our toughest prior year comparisons and two major hurricanes during the quarter," said CEO Barbara Rentler. "Operating margin of 13.3% was better-than-expected, mainly due to a combination of higher merchandise margin and leverage on above-plan sales.”
Given its better-than-expected trends in the third quarter, Ross raised its sales expectations for the fourth quarter. Comparable-store sales are now forecast to increase 2% to 3% versus a 4% gain last year. Earnings per share are projected to be $.88 to $.92, up from $.77 in the prior year period.
"Based on this updated guidance and our year-to-date results, we are now planning earnings per share for fiscal 2017 to be in the range of $3.24 to $3.28," Rentler said.
As of Oct. 28, Ross operates 1, 414 Ross Dress for Less stores in 37 states, the District of Columbia and Guam, and 215 dd’s Discounts stores in 16 states.