Ross Comps Up 8 Percent
Off-price retailer Ross Stores Inc. is thriving in a still-tough economy. On Nov. 19, the Pleasanton, Calif.–based retailer reported record earnings for the third quarter of its 2009 fiscal year.
The company credited lean inventories with pushing profits up in the third quarter.
Ross President Michael Balmuth reported his company’s net earnings grew 83 percent to a record $105.1 million, compared with $57.3 million in earnings for the third quarter of its 2008 fiscal year. Its other numbers looked good, too. Ross’ fiscal 2009 third-quarter sales increased 12 percent to $1.744 billion. Its comparable-store sales increased 8 percent over the same time in the past year.
Despite the good performance, Balmuth planned to plot a conservative course for the rest of his fiscal year. He did not raise guidance for earnings for his company’s fourth quarter. “We remain well-positioned as a value retailer,” he said. “That said, with a still uncertain economic climate, we believe it is prudent to maintain our prior forecast for both sales and earnings.”
Ross operates 995 Ross Dress for Less stores and 55 dd’s Discounts stores.—Andrew Asch
