Ross Stores sees record earnings growth

PLEASANTON, Calif. Ross Stores reported that earnings per share for second quarter rose 52% to 82 cents, from 54 cents for the 13 weeks ended Aug. 2. Net earnings for the second quarter of 2009 grew 45% to a record $103.4 million, from $71.3 million in second quarter 2008. Sales for the 13 weeks ended Aug. 1 increased 8% to $1.769 billion, with comparable-store sales up 3% on top of a strong 6% gain in the prior year.

For the six months ended Aug. 1, earnings per share rose 37% to $1.55, from $1.13 for the six months ended Aug. 2. Net earnings for the six months ended Aug. 1 grew 29% to a record $194.8 million, compared to $150.8 million in the prior year period. Sales for the first six months of 2009 increased 8% to $3.460 billion, with comparable store sales up 3% on top of a 5% gain last year.

The company said it is now expecting same-store sales gains of 5% to 6% for both the third and fourth quarters, up from its previous guidance for a 2% to 3% increase.

The company is projecting third and fourth quarter earnings per share to be in the ranges of 57 cents to 63 cents and 88 cents to 94 cents, respectively. These 2009 ranges compare with earnings per share of 44 cents and 76 cents  in the 2008 third and fourth quarters, respectively. For the fiscal year ending Jan. 30, 2010, the company now projects earnings per share to increase 29% to 34% to $3.00 to $3.12, up from $2.33 in fiscal 2008.