Ross Q2 Beats Expectations

In Industry News, What's New by Accessories Staff

Ross Stores, Inc.’s strong Q2 results underscored how well off price is performing compared to traditional department stores. Net earnings grew to $317 million, compared to $282 million in the prior year. Sales rose 8% to $3.432 billion, with comp store sales up 4% (on top of 4% growth last year).

For the first six months of fiscal 2017, earnings per share were up 14% on top of a 9% gain last year. Net earnings were $638 million, up from $573 million in the prior year. Sales rose 7% to $6.738 billion, with comp store sales up 4% (versus a 3% gain in the same period last year).

“We are pleased with the better-than-expected growth we delivered in both sales and earnings in the second quarter, especially given our strong multi-year comparisons and today’s volatile retail climate,” said Barbara Rentler, chief executive officer of Ross Stores. “Operating margin of 14.9% outperformed our projections, mainly due to a combination of higher merchandise margin and leverage on our above-plan sales gains.”

The future looks good for Ross as well. “For the third quarter ending October 28, we are forecasting a same store sales gain of 1% to 2% on top of a robust 7% increase in the prior year.”

Based in Dublin, California, Ross Stores, Inc. operates Ross Dress for Less® with 1,384 locations in 37 states, the District of Columbia and Guam.