Riding on better than expected June earnings, Ross Stores, Inc (NASDAQ:ROST), now forecasts the second quarter earnings to be 77 cents per share, up from its May estimate of 72 cents to 75 cents. The second quarter ends on July 28. The company today reports that its same-store June sales grew 7 percent, and the five month same-store sales was up 8 percent from last year.
Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “We are pleased with our better-than-expected June sales. Our ongoing ability to deliver terrific name brand bargains to today’s value-focused shoppers drove broad-based merchandise and geographic sales gains during the month.”
Pleasanton, California-based Ross Stores recorded a revenue of $8.6 billion in fiscal year 2011. The company appears in the S&P 500, Fortune 500 and Nasdaq 100. It runs stores under two names: Ross Dress for Less and dd’s Discounts. “Ross Dress for Less” is the largest chain of off-price apparel and home fashion in the US. with 1051 stores. It offers first-quality, in-season, name brand and designer apparel, accessories, footwear and home fashions for the entire family at everyday savings of 20% to 60% off department and specialty store regular prices.
The company has 102 stores in eight states under the name “dd’s Discounts” , which offers more moderately priced assortments, with average savings of 20-70% off similar products from other department stores.
The company’s stock closed Tuesday at $62.78. The stock market was closed on Wednesday for Independence Day. Ross Stores has seen profits soar in the past two quarters, as more and more bargain-hunting customers are attracted to its discounts amid economic uncertainty and decreased consumer wages.