Ross Stores Q3 sales increase 8 percent

REPORT_ Ross Stores reported earnings per share for the 13 weeks ended November 1, 2014 of 0.93 dollars, up 16 percent from 0.80 dollars for the 13 weeks ended November 2, 2013. Net earnings for the third quarter ended November 1, 2014 were 193 million dollars, up from 172 million dollars for the third quarter ended November 2, 2013. Fiscal 2014 third quarter sales increased 8 percent to 2.599 billion dollars, with comparable store sales up 4 percent over the prior year.

For the nine months ended November 1, 2014, earnings per share were 3.22 dollars, up 13 percent from 2.86 dollars for the nine months ended November 2, 2013. Net earnings for the 2014 year-to-date period grew to 676 million dollars, up from 619 million dollars in the prior year. Sales for the first nine months of 2014 increased 7 percent to 8.009 billion dollars, with comparable store sales up 2 percent over the same year-to-date period in 2013.

Commenting on the results, Barbara Rentler, Chief Executive Officer, said, “We are pleased with the better-than-expected sales and earnings we achieved in the third quarter. These results were driven by our ongoing ability to deliver compelling bargains to our customers, which drove above-plan sales gains and strong merchandise gross margins. Operating margin for the quarter grew 55 basis points due to a 40 basis point improvement in cost of goods sold and a 15 basis point decline in selling, general and administrative expenses.”

For the 13 weeks ending January 31, 2015, the Company continues to project comparable store sales up 1 percent to 2 percent with earnings per share forecast to be 1.05 dollars to 1.09 dollars, up from 1.02 dollars for the 13 weeks ended February 1, 2014. For the 52 weeks ending January 31, 2015, earnings per share are now projected to increase 10 percent to 11 percent to 4.28 dollars to 4.32 dollars, compared to 3.88 dollars for the 52 weeks ended February 1, 2014.