Better-than-expected sales at Ross Stores; outlook looks up

PLEASANTON, Calif. Ross Stores reported that sales for the five weeks ended Oct. 3 increased 12% to $629 million from $561 million for the five weeks ended Oct. 4 the year prior. Same-store sales for the month rose 8%.

For the eight months ended Oct. 3, sales totaled $4.647 billion, up 9% over the $4.262 billion in sales for the eight months ended Oct. 4 the year prior. Comparable-store sales for the eight months ended Oct. 3 increased 4% on top of a 3% gain in the prior year period.

Looking ahead, Michael Balmuth, vice chairman, president and CEO, said, "I am pleased to report that earnings per share for the 13 weeks ending Oct. 31 are now projected to be in the range of 75 cents to 77 cents, a significant increase over 44 cents in third quarter 2008. The forecasted upside from our previous earnings per share guidance of 57 cents to 63 cents is being driven mainly by favorable shortage results from our annual physical inventory of stores in September…Our updated third quarter guidance also reflects stronger-than-planned sales and merchandise margins quarter-to-date and our continued expectation for a 5% to 6% same-store sales gain in October."