Ross Profit Tops Estimates; Q2 Outlook Weak, Lifts FY Guidance

(RTTNews) - Discount apparel retailer Ross Stores Inc (ROST) on Thursday reported first-quarter net earnings of $282.2 million or $1.37 per share compared with $243.9 million or $1.15 per share last year.

Ross said results for the quarter included a benefit of about $0.04 per share mainly from the favorable timing of packaway-related costs. Adjusting for this, quarterly earnings per share rose 16% over the prior year.

Revenues for the quarter were $2.94 billion compared with $2.68 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $1.28 per share on revenues of $2.89 billion for the quarter. Analysts' estimates typically exclude special items.

Comparable store sales for the quarter were up 5%.

For the second quarter, the company expects earnings of $1.19 to $1.24 per share; adjusting for the recently announced two-for-one stock split that becomes effective June 11, earnings are forecast to be $0.59 to $0.62.

Analysts expect earnings of $1.26 per share for the quarter.

Ross expects same store sales to increase 2% to 3% for the second quarter.

For the full year 2015, the company now expects earnings of $4.72 to $4.87 per share, up from prior guidance of $4.60 to $4.80 per share; on a split-adjusted basis, earnings are forecast to be $2.36 to $2.44 per share.

Analysts expect earnings of $4.83 per share for the year.