Ross Stores says key sales measure rises 9 percent in October, boosts 3rd-quarter guidance
Associated Press
11/05/09 11:10 AM EST
PLEASANTON, CALIF. — Ross Stores Inc. said Thursday that a key sales figure jumped 9 percent in October as shoppers continued to hunt for bargains. The discount retailer also boosted its guidance for the third quarter.
Sales in stores open at least a year rose 9 percent, besting expectations of analysts polled by Thomson Reuters of 7.3 percent growth. The sales figure is key to assessing a retailer's health. It excludes sales at newly opened stores, which can distort the year-to-year comparisons.
Total sales rose 14 percent to $557 million for the four weeks ended Oct. 31
For the nine months ending in that period, sales at stores open at least a year rose 5 percent and total sales grew 10 percent to $5.2 billion.
Ross increased its third-quarter profit guidance to between 83 cents and 84 cents per share, up from a prior forecast of 75 cents to 77 cents per share, saying sales and margins have been ahead of expectations.
Analysts polled by Thomson Reuters expect per-share earnings of 76 cents per share.
The Pleasanton, Calif., company reports quarterly results on Nov. 19.
Ross' shoes, dresses and home categories were the strongest performers. Sales were best in the Southwest, Southeast and California, Ross said.
The company operated 955 Ross Dress for Less stores and 53 dd's Discounts as of Oct. 31.
Ross shares rose 67 cents to $45.55 in morning trading.
