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Ross Stores Q1 profit up & sees higher Q2 profit

24 May '07

3 min read

Ross Stores Inc reported earnings per share for the 13 weeks ended May 5, 2007 of $.48, compared to $.41 for the 13 weeks ended April 29, 2006. Net earnings for the first quarter of 2007 were $67.0 million, compared to $59.2 million in the first quarter of 2006.

Sales for the 13 weeks ended May 5, 2007 were $1.4 billion, up 9% versus the first quarter in fiscal 2006. Comparable store sales for the 13 weeks ended May 5, 2007 were flat compared to the 13 weeks ended May 6, 2006. For the 13 weeks ended April 29, 2006, comparable store sales rose 6%.

Michael Balmuth, Vice Chairman, President and Chief Executive Officer, commented, "First quarter earnings were driven by a combination of top line growth and expansion in operating margin. Same store sales for the quarter were slightly below our projection of a 1% to 2% increase, due to our sales shortfall in April."

"We believe April was affected by a larger-than-expected impact from the Easter calendar shift and unseasonable weather during the first two weeks. Geographic and merchandise trends during the quarter were relatively broadbased. The best performing markets were on the west coast, while Home and Dresses were the strongest merchandise departments."

Mr. Balmuth continued, "Operating margin for the period grew about 30 basis points to 7.7%, benefiting from a 60 basis point gain in gross margin that was partially offset by a 30 basis point increase in selling, general and administrative costs as a percent of sales."

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