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.”