Obi Anyanwu
Nov 18, 2016
Ross Stores updates full year guidance following better-than-expected Q3
Obi Anyanwu
Nov 18, 2016
Ross Stores on Friday released its third quarter and year-to-date results. The company updated its fourth quarter guidance based on its results.
Third quarter sales increased 11% to $3.1 billion and comparable store sales increased 7% compared to an increase of 3% in the previous third quarter. Net earnings increased to $245 million from $216 million and earnings per share increased 17% to $0.62.
Barbara Rentler, Chief Executive Officer, commented, "We are very pleased with our better-than-expected sales and earnings growth in the third quarter as customers responded favorably to the compelling values we offered throughout our stores. Operating margin of 12.6% was ahead of plan, increasing 55 basis points mainly from higher merchandise margin."
Ross Stores remains on pace to buy back $700 million in common stock to complete its two-year $1.4 billion authorization. The company repurchased 2.8 million shares of common stock in the third quarter and 9.1 million shares in the nine months ended on October 29, 2016, for an aggregate price of $179 million and $530 million, respectively.
Sales for the nine months increased 8% to $9.4 billion and comparable store sales increased 4%. Earnings per share increased 11% on top of a 15% increase in 2015, and net earnings were $817 million.
Following the results, the company maintains its comparable sales guidance of positive 1% to 2% and earnings per share range of $0.72 to $0.75, but now expects its fiscal 2016 EPS to range from $2.78 to $2.81.
The Dublin, California-based company operates 1,342 Ross Dress for Less stores in the US and Guam and 193 dd’s Discounts stores in 15 states.
Copyright © 2024 FashionNetwork.com All rights reserved.