Ross Stores Raises Annual Profit Projection but Has Sales Promotions' Warning
November 19 2015 - 7:56PM
Dow Jones News
By Maria Armental
Ross Stores Inc. on Thursday raised its projections for the
year, following stronger-than-expected third-quarter results.
But the Dublin, Calif., company affirmed its projections for the
quarter that ends Jan. 30, warning that it expects results in the
key holiday season to be weighed down by sales promotions.
Ross now expects to make $2.45 to $2.48 a share for the year, up
from its earlier view of $2.40 to $2.45. It ended fiscal 2014 with
a profit of $2.21 a share, adjusted for its 2-for-1 stock split in
June.
Shares, down 2% this year, rose 7.8% to $49.80 in late
trading.
Ross, which started as a family-run junior department store
chain in the San Francisco Bay Area, now operates more than 1,250
stores under the Ross Dress for Less and dd's Discount names.
Over all, for the period ended Oct. 31, Ross reported a profit
of $215.7 million, or 53 cents a share, up from $192.7 million, or
46 cents a share, a year earlier.
Ross had projected 48 cents to 50 cents a share.
Sales rose 7% to $2.78 billion, compared with analysts'
projected $2.77 billion.
Meanwhile, sales at stores open for at least 15 months rose 3%,
topping the company's projection of a 1% to 2% increase. Last year,
the company reported a 4% increase in comparable sales.
Gross profit margin improved to 28% from 27.6% a year
earlier.
It affirmed its projections for the quarter that ends on Jan.
30.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 19, 2015 19:41 ET (00:41 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Ross (LSE:RGP)
Historical Stock Chart
From Apr 2024 to May 2024
Ross (LSE:RGP)
Historical Stock Chart
From May 2023 to May 2024