US retailer Ross Stores exceeds pre-pandemic figures in Q2 FY21

24 Aug '21

2 min read

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Ross Stores, a US-based chain of discount department stores, has surpassed pre-pandemic figures with sales of $4.8 billion, up 21 per cent, in second quarter (Q2) of FY21 ended on July 31, 2021, against $3.9 billion in the corresponding quarter of 2019. The company’s net earnings for the quarter surged to $494.2 million (Q1 FY19: $412.7 million).

“We are pleased that both second quarter sales and earnings substantially exceeded our expectations. Sales benefited from customers’ positive response to our broad assortment of great bargains. In addition, our results were bolstered by a number of external factors, including ongoing government stimulus, increasing vaccination rates, and diminishing Covid restrictions,” Barbara Rentler, chief executive officer at Ross Stores, said in a press release.

Cost of goods sold during Q2 FY21 improved to $3.4 billion compared to $2.8 billion in FY19. Moreover, total costs and expenses were $4.1 billion ($3.4 billion).

“Looking ahead, there remains much uncertainty regarding the sustainability of the positive external factors that benefited our first half results as well as the potential risks we may face from the spread of Covid variants and worsening industry-wide supply chain congestion. As a result, we are forecasting third quarter same store sales to be up 5 per cent to 7 per cent with earnings per share in the range of $0.61 to $0.69,” Rentler added.

“Based on first half results and our third quarter outlook, we are updating our fiscal year 2021 earnings per share forecast to be in the range of $4.20 to $4.38 on a comparable store sales gain of 10 per cent to 11 per cent,” Rentler said in the release.

Fibre2Fashion News Desk (JL)

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