By
Reuters
Published
Aug 18, 2011
Download
Download the article
Print
Text size

Ross profit rises, stays cautious for rest of the year

By
Reuters
Published
Aug 18, 2011

August 18 - Off-price store chain Ross Stores Inc reported a higher quarterly profit as shoppers continued to seek out top brands at discount prices, but warned of a difficult consumer environment for the rest of the year.


At Ross expect to find designer and brand name fashions for women, men, kids and home at everyday savings of 20-60% compared to department and specialty stores.

Ross, which like its larger rival TJX Cos Inc sells designer clothing brands at lower prices, reported net income of $148.3 million, or $1.28 per share, compared to $129.3 million, or $1.07 per share, a year earlier.

Total sales rose 9 percent to $2.089 billion, while sales at stores open at least a year rose 5 percent.

"We believe it is prudent to be cautious in our outlook for the back half of the year mainly due to the unknown impact on consumers from the recent stock market volatility and increased economic uncertainty," Chief Executive Michael Balmuth said.

The company expects third-quarter profit of $1.00-$1.04 a share and same store sales to rise 1-2 percent. Analysts, on average, were expecting the company to earn $1.13 a share, according to Thomson Reuters I/B/E/S.

Shares of the company were trading down at $69.95 on Thursday morning. They closed at $71.80 Wednesday on Nasdaq.

(Reporting by Nivedita Bhattacharjee and Phil Wahba; Editing by Viraj Nair)

© Thomson Reuters 2024 All rights reserved.