Ross Stores posts 7% increase in annual sales

By

Robin Driver

Published
Mar 6, 2020

Ross Stores, Inc., the Dublin, California-based operator of Ross Dress for Less and DD’s Discounts, reported total revenues of $16.0 billion in fiscal 2019, up 7% from $15.0 billion in the previous year.
 

Comparable sales at the retailer increased 3%, on top of a 4% gain in fiscal 2018.
 
Full-year net income totaled $1.7 billion, or $4.60 per diluted share, up from $1.6 billion, or $4.26 per diluted share, in the previous year.

Ross Stores’ fourth quarter contributed to the retailer’s annual growth with a 7.5% rise in sales of its own. The retailer’s quarterly sales came to $4.4 billion, compared to $4.1 billion in the same period in the previous year, while comps rose 4%, on top of a 4% increase in Q4 2018.
 
Quarterly earnings were $456.1 million, or $1.28 per diluted share, up from $441.7 million, or $1.20 per diluted share, in the prior-year period.
 
“We delivered strong sales and earnings growth for both the fourth quarter and fiscal year,” commented Ross Stores CEO Barbara Rentler in a release. “Our ongoing ability to offer compelling bargains to our customers enabled us to achieve these results despite our own challenging multi-year comparisons and a fiercely competitive holiday season.”
 
Looking forward, Ross Stores expects same-store sales to grow between 1% and 2% in fiscal 2020, while earnings per share are predicted to be in the range of $4.67 to $4.88.
 
In the first quarter of the year, comparable store sales are expected to increase between 1% and 2%, with earnings per share expected to be in the range of $1.16 to $1.21.
 
The company’s outlook for the first quarter and full fiscal year 2020 do not currently take into account the potential negative impact of the ongoing coronavirus outbreak. The retailer said that it continues to closely monitor the situation and emphasized the high level of uncertainty regarding supply chain disruptions in China, as well as concerning the potential negative effects on U.S. consumer demand should the virus spread further.
 
Ross Stores operated 1,805 locations at the end of fiscal 2019 and plans to open 100 new stores this year, including 75 Ross Dress for Less and 25 DD’s Discounts locations.