Ross Stores reports record 2Q earnings growth

PLEASANTON, Calif. Ross Stores reported that earnings per share for the second quarter ended Aug. 2 increased 46% to 54 cents, from 37 cents for the second quarter ended Aug. 4, 2007. Net earnings for the second quarter ended Aug. 2 rose 40% to a record $71.3 million, from $50.9 million for the second quarter ended Aug. 4, 2007. Fiscal 2008 second quarter sales increased 14% to $1.64 billion, with comparable-store sales up 6% over the prior year.

Michael Balmuth, vice chairman, president and ceo, commented, "We are pleased to report strong sales and earnings growth for both the second quarter and year-to-date periods. We believe that our solid financial results were driven mainly by our ability to offer compelling bargains on fresh and exciting name brand fashions for the family and the home. The tax rebate checks and favorable weather also benefited sales in the quarter. Dresses, accessories and shoes were the strongest merchandise categories during the second quarter, while the best-performing markets were in Texas and the Mid-Atlantic."

Balmuth said that the company continues to expect comparable-store sales gains of 2% or 3% for the third and fourth quarters. Earnings per share are projected to be in the range of 42 cents to 44 cents for the quarter ending Nov. 1 and 78 cents to 81 cents for the quarter ending Jan. 31, 2009.