PLEASANTON (dpa-AFX) - Ross Stores Inc. (ROST) Thursday reported an increase in profit for the first quarter, due mainly to an eight percent sales growth and improved gross margins as consumer's continued to favor the discount retailer's bargains. Earnings for the quarter were in line with analysts' expectations, while quarterly revenues topped Wall Street estimates.
The retailer lifted its full year earnings outlook, while detailing its second-quarter earnings guidance in line with estimates.
Pleasanton, California-based Ross Stores' first-quarter profit improved to $234.6 million or $1.07 per share from $208.6 million or $0.93 per share last year. Analysts polled by Thomson Reuters expected the company to earn $1.07 per share for the quarter. Analysts' estimates typically exclude special items.
First-quarter sales grew 8 percent to $2.54 billion from $2.36 billion last year. Analysts had a consensus revenue estimate of 2.52 billion for the quarter.
Comparable store sales for the 13 weeks ended May 4, 2013 rose 3 percent over the 13 weeks ended May 5, 2012.
Chief Executive Michael Balmuth said the company is pleased with its first quarter results. He added that the results were largely driven by its 'ongoing ability to offer terrific bargains to today's value-oriented consumers.'
Operating margin for the period advanced to 14.9 percent from 14.4 percent last year, driven mainly by higher merchandise gross margin and also benefiting from favorable timing of expenses.
Looking forward to the second quarter, Ross Stores expect earnings in the range of $0.89 to $0.93 per share. Analysts currently estimate earnings of $0.91 per share for the quarter. Ross expects same store sales to increase 1 to 2 percent for the 13 weeks ending August 3, 2013.
For the full year 2014, the company now project earnings of $3.70 to $3.81 per share, up from its initial guidance of $3.65 to $3.80 per share. Analysts currently estimate earnings of $3.88 per share for the full year.
ROST closed Thursday's regular trade at $65.08, down $0.12 or 0.18%, on a volume of 1.3 million shares on the Nasdaq. In the past 52-week period, the stock trended in a range of $52.01 - $70.82, on a three-month average volume of 2.3 million shares.
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