Ross Stores Inc. (ROST), the second largest off-price retailer of apparels and home accessories, recently marked the 11th consecutive quarter of positive comparable store sales trend, clocking 4.0% for the five-week period ended January 1, 2011. Ross also upgraded its outlook for the fourth quarter of fiscal 2010.
Regionally, Florida acted as the catalyst for the increase in comparable store sales. Categories like Juniors and Dresses left a positive footprint on results.
Ross also surpassed the comparable store sales of its nearest competitor, The TJX Companies Inc. (TJX), which reported a 2.0% growth in the month.
For the month under review, sales increased 8.0% to $1,008 million from $934.0 million in the year-ago quarter.
For the eleven months ended, the company generated a top-line growth of 10.0% climbing to $7.425 billion from $6.773 billion recorded in the prior-year quarter. Comparable store sales for the period jumped 5.0%.
Ross now anticipates earnings per share in the range of $1.32 to $1.34 in the fourth quarter of fiscal 2010, which reflects an increase of 14% to 16% from $1.16 reported in the fourth quarter of fiscal 2009. Ross also sees January same store sales to decline in the range of 1% to 2%.
Ross operates 1,057 stores comprising 990 Ross Dress for Less (Ross) stores and 67 dd's DISCOUNTS stores
We believe that Ross' continuous effort to increase its store base coupled with the ability to deliver positive comparable same-store sales will augur well for top-line growth.
Ross' shares maintain a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Neutral.
ROSS STORES (ROST): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.