Ross Stores Profit Up 18% in 3Q, Sales Flat

New York City Ross Stores said quarterly profit rose 18% on inventory management and cost cutting. However, the company trimmed its holiday forecast.

The company said on Wednesday net income rose to $57.3 million in the third quarter ended Nov. 1, from $48.7 million a year earlier.

Same-store sales were little changed from a year earlier.

"Based on the increasingly difficult macroeconomic and retail climate and our expectation of a very promotional holiday season, we believe it is prudent to adopt a more conservative outlook for the fourth quarter," Ross CEO Michael Balmuth said in a statement.

Ross forecast fourth-quarter same-store sales would fall 1% to 3%.

Ross previously reported that third-quarter sales rose 6% to $1.56 billion, and October same-store sales fell 2%.