Ross Stores (ROST) Reports In-Line Q1 EPS, Offers Q2 & FY EPS Guidance

(Updated)

Ross Stores (NASDAQ: ROST) reported Q1 EPS of $0.73, in-line with the analyst estimate of $0.73. Revenue for the quarter came in at $3.09 billion versus the consensus estimate of $3.12 billion.

• comparable store sales up 2%

GUIDANCE:

Ross Stores sees Q2 2016 EPS of $0.64-$0.67, versus the consensus of $0.70.

• forecast same store sales for the second quarter ending July 30, 2016 to be up 1% to 2%

Ross Stores sees FY2016 EPS of $2.63-$2.72, versus the consensus of $2.73.

Barbara Rentler, Chief Executive Officer, commented, "Even though we faced our strongest prior year comparisons, sales performed at the high end of guidance, while earnings per share were slightly above our targeted range. Operating margin for the period of 15.4% was down from last year, but slightly above plan, mainly due to higher merchandise margins that partially offset the expected impact from the unfavorable timing of packaway-related costs."

Ms. Rentler said, "During the first quarter of fiscal 2016, we repurchased 3.1 million shares of common stock for an aggregate price of $176 million. This keeps us on track to buy back a total of $700 million in common stock during fiscal 2016, which would complete the two-year $1.4 billion authorization approved by our Board of Directors in February 2015."

Looking ahead, Ms. Rentler commented, "We continue to forecast same store sales for the second quarter ending July 30, 2016 to be up 1% to 2%, on top of a 4% gain last year, with earnings per share of $.64 to $.67, up from $.63 in the prior year period. Based on our first quarter results and guidance for the second quarter, we now project earnings per share for fiscal 2016 to be in the range of $2.63 to $2.72, compared to $2.51 last year."

For earnings history and earnings-related data on Ross Stores (ROST) click here.

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