Ross Stores, Inc.

Ross Stores, Inc. (ROST - Snapshot Report) saw a 10% year-over-year increase in sales for the month of May. Same store sales were 4% higher than the year-ago level. Management said dresses and shoes remained the strongest merchandise categories in May.

Company Description

Ross Stores is the second largest off-price retailer with fiscal 2008 revenues of $6.5 billion. The company noted that, as of May 30, 2009, it operated 922 Ross Dress for Less® ("Ross") stores and 52 dd's DISCOUNTS® locations, compared to 863 Ross and 54 dd's DISCOUNTS locations at the end of the same period last year.

Ross Dress for Less offers in-season, name brand and designer apparel, accessories, footwear and home fashions for the entire family at everyday savings of 20% to 60%.

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

Sales Growth

The company saw a 10% year-over-year increase in sales for the month of May. Same store sales were 4% higher than the year-ago level. Management said dresses and shoes remained the strongest merchandise categories in May.

Another Record Quarter

The company recently posted stellar first-quarter results with record numbers after seeing a record fourth quarter.

Earnings per share of 72 cents per share topped the previous year’s 60 cents and matched the consensus estimate.

Management said sales and earnings results were well ahead of plan, adding that ROSTs performance was especially noteworthy considering that it was achieved in one of the most challenging economic and retail environments on record.

Vice Chairman, President and Chief Executive Officer Michael Balmuth said, “our business benefited mainly from our ability to offer customers fresh and exciting name brand bargains, as we continue to take advantage of the substantial amount of close-out opportunities in the marketplace. The best performing merchandise categories during the period were Dresses and Shoes, while the strongest region was the Mid-Atlantic."

The company raised its full-year guidance as did Wall Street. Analysts hiked full-year projections to $2.71 per share from last month’s estimates $2.54.

Favorable Industry Comparisons

Ross Stores also rewards shareholders with income, paying an industry-leading dividend yield of 1.1%. The company’s return on equity of 32% is well above the industry average of 16%. Its net profit margin of 6% doubles the industry average of 3%.