Ross tops Street with Q1 earnings; lifts outlook

Dublin, Calif. – Ross Stores Inc. topped Wall Street expectations with net earnings of $282 million in the first quarter of fiscal 2015, up 15% from $244 million in the year-ago period. A one-time benefit related to timing of packaway costs (when a discount retailer buys end-of-season merchandise to sell at a markup the following year) boosted profits.



The off-price retailer reported that its sales rose 10% to $2.93 billion from $2.68 billion in the year-ago period.

Same-store sales increased 5%.



"We are pleased with our better-than-expected sales and earnings in the first quarter,” said Barbara Rentler. CEO. “Operating margin for the first quarter grew to 15.7%, up from 14.6% in the prior year, driven by a combination of higher merchandise margin, strong expense controls, and the aforementioned favorable timing of packaway-related costs."