Ross Stores

Ross Stores Q4 Profit Up on Higher Sales, Better Margins

In Industry News, Reports, What's New by Accessories StaffLeave a Comment

Ross StoresPleasanton, CA—Aided by strong sales and a higher gross margin, Ross Stores reported Thursday that its fourth quarter profit rose 19%.

For the quarter ended Jan. 28, the off-price retailer posted net income of $192 million, or 85 cents a share, compared with $161.8 million, or 69 cents a share, a year earlier.

Net revenue increased 12% to $2.4 billion with comparable store sales up 7%. Gross margin expanded to 27.2% from 27.1%.

The earnings were in line with Ross’ earlier projection and analysts’ average estimate forecast earnings of 85 cents a share on sales of $2.39 billion.

Sales ‘Driven by Value-Focused Consumers’

“Our healthy revenue growth continues to be driven mainly by our ability to deliver compelling bargains on a wide assortment of exciting name brand fashions for the family and the home to today’s increasingly value-focused consumers,” Michael Balmuth, ceo, said.

For its fiscal year, Ross’ net earnings grew 18% to $652.2 million; earnings per share were $2.86, up 24% on top of a 31% increase in 2010 and a 52% increases in 2009. Comparable store sales increased 5% on top of a 5% increase in 2010.

“Our improved profitability for both the quarter and the full year were driven primarily by a combination of higher merchandise gross margin, lower shortage costs and leverage on operating expenses from our strong sales gains,” Balmuth added.

In February, Ross Stores said it expected a full year profit of $3.12 to $3.27 a share, but the company didn’t provide an update in its fourth quarter report.

Balmuth, however, projected a “respectable increase” in revenue and earnings per share in 2012 “and beyond.”



It's only fair to share...
Share on FacebookTweet about this on TwitterPin on PinterestShare on LinkedInPrint this pageEmail this to someone