Ross Stores Profit Tops Street - Update

(RTTNews) - Ross Stores Inc. (ROST) on Tuesday reported an increase in profit for the fourth quarter, as the discount apparel retailer's revenues grew 7 percent, with both earnings and revenue topping Wall Street estimates.

Pleasanton, California-based Ross Stores fourth-quarter profit rose to $264.2 million or $0.66 per share from $248.5 million or $0.60 per share last year. On average, twenty-nine analysts polled by Thomson Reuters expected earnings of $0.64 per share for the quarter.

Ross Stores, which owns the Ross Dress for Less and Dd's Discounts chains, said sales for the quarter grew 7 percent to $3.25 billion from $3.03 billion a year ago. Twenty-seven analysts had a consensus revenue estimate of $3.21 billion for the quarter.

Same-store sales for the quarter increased 4 percent.

Chief Executive Barbara Rentler said, "These results were driven by the competitive values we offered on a wide assortment of name brand bargains and gifts throughout our stores."

For the full year 2016, the company expects earnings of $2.59 to $2.71 per share. For the first quarter, earnings are projected to be $0.69 to $0.72 per share. Analysts currently estimate earnings of $0.76 per share and $2.75 per share for the first quarter and full year 2016, respectively.

Rentler said, "As we enter 2016, we continue to face our own challenging multi-year comparisons in an increasingly uncertain and volatile macro-economic and retail environment. As a result, while we hope to do better, we believe it is prudent to maintain a somewhat cautious outlook when forecasting sales and earnings for the coming year."

ROST closed Tuesday's trading at $56.23, up $1.25 or 2.27%, on the Nasdaq. The stock, however, dropped $0.14 or 0.25% in the after-hours trade.