Ross Stores, Inc.

Ross Stores, Inc. (ROST - Snapshot Report) recently posted April sales of $534 million, an increase of 11% year-over-year. Comparable store sales climbed 6% over the same time period.

Company Description

Ross Stores is the second largest off-price retailer with fiscal 2008 revenues of $6.5 billion. As of January 31, 2009, the Company operated 904 Ross Dress for Less® stores in 27 states and Guam and 52 dd's DISCOUNTS® locations in California, Florida, Texas and Arizona. The company is headquartered in Pleasanton, California.

Ross Dress for Less 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.

dd's DISCOUNTS features a more moderately-priced assortment of first-quality, in-season, name brand and fashion apparel, accessories and footwear for the entire family at everyday savings of 20% to 70% off moderate department and discount store regular prices as well as similar savings on a wide assortment of merchandise for the home.

Rising Sales and Higher Forecasts

Ross Stores recently posted April sales of $534 million, an increase of 11% year-over-year. Comparable store sales climbed 6% over the same time period.

Management said solid performance throughout the quarter was driven by its continued ability to deliver compelling bargains to customers. Dresses, Children's and Shoes were the best performing merchandise categories for the month while the Southeast and Mid-Atlantic were the strongest regions.

Michael Balmuth, Vice Chairman, President and Chief Executive Officer said "Our first quarter earnings are benefiting from above-plan sales, better-than-expected merchandise gross margin and tight expense control. As a result, earnings per share for the thirteen weeks ended May 2, 2009 are now estimated to be $.71 to $.72, up a strong 18% to 20% from the prior year's $.60 per share. This compares to our previous earnings per share range of $.68 to $.70."

Analysts hiked first-quarter forecasts to 72 cents from last month’s 70 cents. For the full year, analysts are projecting earnings of $2.53 per share, a forecast that was bumped up by a penny in the last week and increased from the month-prior $2.47.

Results for the first quarter are scheduled for release on May 20, 2009.

A Record Fourth Quarter

The company recently posted stellar fourth-quarter results. Net earnings hit a record $97.4 million, versus last year’s fourth-quarter total of $94.5 million. The earnings per share total of 76, matched the consensus estimate and topped the previous year’s 70 cents.

Sales jumped 5% on a year-over-year basis. Comparable store sales slipped by 1% after seeing growth in the year-prior quarter.

Favorable Industry Comparisons

Ross Stores also rewards shareholders with income, paying an industry-leading dividend yield of 1.3%. The company’s return on equity of 31% is well above the industry average of 16%. Its net profit margin of 6% doubles the industry average of 3%.