Ross Stores Q1 FY'13 sales increase 8%

First quarter 2013 sales increased 8% to $2.540 billion, up from $2.357 billion in the first quarter of 2012. Comparable store sales for the 13 weeks ended May 4, 2013 rose 3% over the 13 weeks ended May 5, 2012. This compared to a robust 9% same store sales gain for the 13 weeks ended April 28, 2012.

Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, "We are pleased with the slightly better-than-expected sales and earnings we delivered in the first quarter, especially considering this growth was achieved on top of strong prior year gains. These results continued to be driven by our ongoing ability to offer terrific bargains to today's value-oriented consumers."

Mr. Balmuth continued, "Operating margin for the period grew to a record 14.9%, up from 14.4% in the prior year. This increased level of profitability was mainly driven by higher merchandise gross margin and also benefited from favorable timing of expenses."

Mr. Balmuth also noted, "We continued to enhance stockholder returns through our stock repurchase and dividend programs in the first quarter. During the first three months of fiscal 2013, we repurchased 2.3 million shares of common stock for an aggregate price of $138 million. We are on track to buy back a total of $550 million in common stock during fiscal 2013 under the two-year $1.1 billion authorization approved by our Board of Directors in January 2013."

Looking ahead, Mr. Balmuth said, "For the 13 weeks ending August 3, 2013, we are forecasting same store sales to increase 1% to 2% compared to the 13 weeks ended August 4, 2012. Earnings per share for the 2013 second quarter are projected to be in the range of $.89 to $.93, up from last year's $.81. This represents forecasted growth of 10% to 15% on top of a strong 27% gain in the second quarter of 2012."

Mr. Balmuth concluded, "We now project earnings per share for the 52 weeks ending February 1, 2014 to be in the range of $3.70 to $3.81, up from our initial guidance of $3.65 to $3.80 and compared to $3.53 for the 53 weeks ended February 2, 2013. As previously disclosed, the 53rd week in fiscal 2012 added an estimated $.10 to earnings per share."

Ross Stores