Ross Stores, Inc. Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component Ross Stores, Inc. (NASDAQ:ROST) reported its results for the second 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 Second Quarter

Results: Net income for the apparel store rose to $148.3 million ($1.28 per share) vs. $129.3 million ($1.07 per share) in the same quarter a year earlier. This marks a rise of 14.7% from the year earlier quarter.

Revenue: Rose 9.3% to $2.09 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ROST fell in line with the mean analyst estimate of $1.28 per share. Analysts were expecting revenue of $2.08 billion.

Quoting Management: Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “We are pleased with our better-than-expected performance for both the second quarter and first six months of 2011. Our ability to increase the percentage of fresh name brand bargains our customers see, while also strictly controlling inventories and expenses, has enabled us to capitalize on our favorable position as a value retailer.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 21.5% and in the fourth quarter of the last fiscal year, the figure rose 13.2%.

The company has now fallen in step with estimates for the last three quarters. It reported net income of $1.48 in the first quarter, net income of $1.37 in the fourth quarter of the last fiscal year and net income of $1.02 in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.2% to $2.07 billion in the first quarter. The figure rose 8.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 7.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company’s cost of sales rose 9.2% from a year earlier. Last quarter, cost of sales was 73% of revenue, similar to 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), J.C. Penney (NYSE:JCP), TJX Companies (NYSE:TJX), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), American Eagle Outfitters (NYSE:AEO), The Gap Inc. (NYSE:GPS), and The Buckle, Inc. (NYSE:BKE).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)

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