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Apparel maker Ross Stores declares Q2 results & H2 sales

17 Aug '05

5 min read

California based apparel, accessories and footwear provider Ross Stores Inc reported earnings per share for the 13 weeks ended July 30, 2005 of $.29, compared to $.21 as restated for the 13 weeks ended July 31, 2004. Net earnings for the second quarter ended July 30, 2005 were $42.3 million, compared to $32.2 million as restated for the 13 weeks ended July 31, 2004.

Earnings results for the quarter ended July 31, 2004 included a non-cash after-tax charge of $11.0 million, or $.07 per share, related to the write- down of the Company's former corporate headquarters and distribution center in Newark, California. Current year second quarter sales rose 16 percent to $1.172 billion, from $1.009 billion for the quarter ended July 31, 2004. Comparable store sales for the period increased 7 percent over the prior year.

For the six months ended July 30, 2005, earnings per share totaled $.62, compared to $.53 as restated for the six months ended July 31, 2004. Net earnings for the six months ended July 30, 2005 were $92.3 million, compared to $80.4 million as restated for the same period in the prior year. Again, results for the first six months of 2004 included the charge relating to the former headquarters and distribution center. Sales for the first six months of 2005 rose 15 percent to $2.296 billion, with same store sales up 5 percent over the prior year period.

Michael Balmuth, Vice Chairman, President and Chief Executive Officer, commented, "Sales trends improved during the quarter, led by strength in Juniors and Shoes, which they believe bodes well for their back-to-school business. At the same time, operating margin continued to be affected by higher-than-expected markdowns combined with an increase in distribution center costs as a percent of sales. While partially offset by leverage on occupancy and other expenses from the 7 percent gain in same store sales, these factors resulted in an approximate 120 basis point decline in operating margin for the second quarter of 2005, excluding the prior year impact of the aforementioned write-down."

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