Ross Stores Earnings: Profits Grow by Double Digits For Fifth Straight Quarter

S&P 500 (NYSE:SPY) component Ross Stores, Inc. (NASDAQ:ROST) reported its results for the first quarter. Ross Stores Inc. operates two chains of off-price retail apparel and home accessories stores in the U.S. and Guam.

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Ross Stores Earnings Cheat Sheet for the First Quarter

Results: Net income for Ross Stores, Inc. rose to $173 million ($1.48/share) vs. $142.3 million ($1.16/share) in the same quarter a year earlier. A rise of 21.5% from the year earlier quarter.

Revenue: Rose 7.2% to $2.07 billion YoY.

Actual vs. Wall St. Expectations: ROST was about in line with expectations as the mean analyst estimate of $1.47/share. Estimates ranged from $1.32 per share to $1.48 per share.

Quoting Management: Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “We are pleased to report that both sales and earnings in the first quarter were better than expected, with solid gains on top of very tough comparisons in the prior year. These results were mainly driven by our ongoing ability to deliver a wide array of compelling name-brand bargains to today’s value-focused customers, while operating our business on leaner in-store inventories.”

Key Stats:

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 13.2% and in the third quarter of the last fiscal year, the figure rose 15.5%.

The company’s cost of sales rose 5.3% from a year earlier. Last quarter, cost of sales was 71.4% of revenue versus 72.7% a year earlier.

Competitors to Watch: Citi Trends, Inc. (NASDAQ:CTRN), Syms Corp. (NASDAQ:SYMS), Stein Mart, Inc. (NASDAQ:SMRT), Stage Stores, Inc. (NYSE:SSI), Nordstrom, Inc. (NYSE:JWN), Abercrombie & Fitch Co. (NYSE:ANF), Urban Outfitters, Inc. (NASDAQ:URBN), American Eagle Outfitters (NYSE:AEO), The Gap Inc. (NYSE:GPS), and The Buckle, Inc. (NYSE:BKE).

Stock Performance: Shares of ROST are down 1.3% from the previous close of $81.86.

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