Ross Stores 2Q Profit Jumps 40%
Pleasanton, Calif. Ross Stores Inc. on Wednesday raised its full-year guidance as the chain delivered a 40% increase in second-quarter profit that matched Wall Street expectations. Ross earned $71.3 million in the second quarter, up from $50.86 million in the year-ago period.
Sales increased 14% to $1.64 billion in the period. Same-store sales rose 6% for the second quarter.
The off-price retailer said dresses, accessories and shoes were its strongest merchandise categories during the quarter, with the best-performing markets in Texas and the Mid-Atlantic.
Despite its strong performance, Ross reaffirmed its previous target of same-store sales gains of 2% to 3% for the third and fourth quarters.
“Looking ahead to the important back-to-school and holiday periods, we believe it is prudent to remain defensively positioned based on the uncertain macro economic and retail environments, which no longer have the benefit of the tax-rebate checks,” said Michael Balmuth, Ross’ vice chairman, president and CEO, in the company’s earnings release.