Ross Stores reports higher profit, reduces forecast

16 Aug '06

3 min read

On a more current note, Balmuth said, "Same store sales for the first two weeks of August were below plan at up 2% from the prior year. In addition, we are entering the fall season with residual inventory and clearance levels that are expected to pressure gross margin during the third quarter. As a result, we are adopting a more conservative outlook for the second half of the year."

The company now projects the following same store sales and earnings per share ranges for the balance of fiscal 2006:

-- For the third quarter ending October 28, 2006, same store sales are forecast to increase 1% to 3% on top of a 9% increase in the prior year, and earnings per share are projected to be in the range of $.24 to $.27.

-- For the fourth quarter ending February 3, 2007, same store sales are forecast to increase 1% to 3% on top of a 6% gain in the prior year, and earnings per share are projected to be in the range of $.57 to $.63.

-- As a result, for the full 53-week 2006 year, same store sales are forecast to increase 3% to 4%, and earnings per share now are projected to be in the range of $1.54 to $1.63.

Ross Stores Inc, headquartered in Pleasanton, California, is the nation's second largest off- price company with fiscal 2005 revenues of $4.9 billion.

Ross Stores Inc

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