ROSS REPORTS BETTER-THAN-EXPECTED GROWTH IN SECOND QUARTER

Ross Stores, Inc. continues to see growth in its business in the second quarter. Net earnings grew to $317 million, compared to $282 million in the prior year. Sales rose 8 percent to $3.432 billion, with comparable store sales up 4 percent on top of 4 percent growth last year.

For the first six months of fiscal 2017, earnings per share were up 14 percent on top of a 9 percent gain last year. Net earnings were $638 million, up from $573 million in the prior year. Sales rose 7 percent to $6.738 billion, with comparable store sales up 4 percent versus a 3 percent gain in the same period last year.

“We are pleased with the better-than-expected growth we delivered in both sales and earnings in the second quarter, especially given our strong multi-year comparisons and today’s volatile retail climate,” said Barbara Rentler, chief executive officer of Ross Stores. “Operating margin of 14.9 percent outperformed our projections, mainly due to a combination of higher merchandise margin and leverage on our above-plan sales gains.”

Looking ahead, Rentler said, “For the third quarter ending October 28, we are forecasting a same store sales gain of 1 percent to 2 percent on top of a robust 7 percent increase in the prior year.”