Ross Stores comparable store sales up 5 percent in Q1

Ross Stores reported earnings per share of 1.37 dollars for the first quarter ended May 2, 2015, up from 1.15 dollars in the prior year. Net earnings grew to 282 million dollars, compared to 244 million dollars for the same period in 2014. Adjusting for the expense timing, first quarter earnings rose 16 percent over the prior year period. Sales for the quarter rose 10 percent to 2.938 billion dollars, with comparable store sales up 5 percent over the prior year.

Commenting on the results, Barbara Rentler, Chief Executive Officer said, “We are pleased with our better-than-expected sales and earnings in the first quarter. Our results continue to benefit from value-focused customers responding favorably to our fresh and exciting assortments of name brand bargains. Operating margin for the first quarter grew to 15.7 percent, up from 14.6 percent in the prior year."

Looking ahead, Rentler added, “For the second quarter ending August 1, 2015, we are forecasting same store sales to increase 2 percent to 3 percent and earnings per share of 1.19 dollars to 1.24 dollars, up from 1.14 dollars in the prior year period. Adjusting for the recently announced two-for-one stock split that becomes effective June 11, 2015, second quarter earnings per share are forecast to be 0.59 dollars to 0.62 dollars, up from 0.57 dollars in the prior year period.”

Based on the company's first quarter results and guidance for the second quarter, earnings per share for fiscal 2015 are now projected to be in the range of 4.72 dollars to 4.87 dollars, compared to our initial guidance of 4.60 dollars to 4.80 dollars. On a split-adjusted basis, earnings per share for the year are forecast to be 2.36 dollars to 2.44 dollars, up 7 percent to 10 percent from 2.21 dollars in fiscal 2014.