Ross Stores reported a strong third quarter, with earnings, comps and sales all showing growth.
For the third quarter ended October 29, Ross Stores posted earnings of $244.5 million, or 62 cents per diluted share, versus $215.7 million, or 53 cents per diluted share, in the year-prior period. Ross beat an analyst average estimate published by MarketBeat of 56 cents.
The company stated that comparable store sales gained 7% from the quarter in the previous year. Overall sales advanced 11% to $3.09 billion.
Barbara Rentler, Ross CEO, said, “We are very pleased with our better-than-expected sales and earnings growth in the third quarter as customers responded favorably to the compelling values we offered throughout our stores. Operating margin of 12.6% was ahead of plan, increasing 55 basis points mainly from higher merchandise margin. As we enter this year’s holiday season, we face our most challenging multi-year sales comparisons. In addition, the ongoing uncertainty in the macro-economic, political and retail environments could, once again, lead to a very promotional fourth quarter. While we hope to do better, given these potential headwinds, we are maintaining our comparable sales guidance for a 1% to 2% increase on top of 6% and 4% gains in 2014 and 2015, respectively.”
At third quarter’s end, Ross operated 1,342 namesake stores in 36 states as well as 193 DD’s Discounts in 15 states.
