Ross Stores Lifts Full-Year Earnings Guidance (ROST)

Discount retail chain, Ross Stores Inc. (NASDAQ: ROST) reported a rise in fiscal second quarter net income, aided by wider margin and higher sales. Shares edged up almost 1.50% in aftermarket hours as both earnings and revenue edged past Street’s consensus estimate.

The company handed weak outlook for the current quarter but raised guidance for the full-year fiscal.

For the fiscal second quarter, the Pleasanton California based company reported a net income of $213.1 million or 98 cents a share up from a profit of $182 million or 81 cents a share, in the year-earlier quarter. Analysts polled by Thomson Reuters had forecasted earnings of 93 cents a share.

Sales rose 9% to $2.55 billion from $2.34 billion, in the same period of last year. Analysts’ consensus estimate was for earnings of $2.52 billion.

Same-store-sales for the 13-week period ended August 3, 2013, increased 4%.

For the current quarter, Ross Stores expects earnings of 75 cents to 78 cents a share while analysts were anticipating 79 cents.

Looking ahead at fiscal 2013, the retailer expects earnings to be in the range of $3.80 to $3.87 a share compared to its previous guidance of $3.70 to $3.81 a share. Analysts’ most recent forecast was for $3.89 a share.

Speaking to analysts in conference call, Ross Stores Inc.’s CEO Michael Balmuth said that the company was pleased with its “better-than-expected” results.  He said the results reflected “solid execution of our core off-price strategy of delivering compelling name brand bargains to today’s value-focused consumers.”

edliston

edliston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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