Ross Stores, Inc. reported that sales grew 9% to $242 million for the four weeks ended January 29, 2005, from $222 million in sales for the four weeks ended January 31, 2004. Same store sales for the month declined 1% on top of a 4% gain in the prior year.
For the 13 weeks ended January 29, 2005, sales increased 10% to $1.212 billion, from $1.099 billion in sales for the 13 weeks ended January 31, 2004. Comparable store sales for the fourth quarter of 2004 were even with the prior year, on top of a 4% gain in the fourth quarter of 2003.
For the 52 weeks ended January 29, 2005, sales grew 8% to $4.240 billion, from $3.921 billion in sales for the 52 weeks ended January 31, 2004. Same store sales for fiscal 2004 declined 1% from the prior year.
Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “We are pleased to report that both sales and margins for the month were in line with expectations, despite the negative impact of weather in several markets. As a result, we continue to estimate that earnings per share for the 13 weeks ended January 29, 2005 will be in the range of 33 to 35 cents.” The Company expects to report final results for the 13 and 52 weeks ended January 29, 2005 on Wednesday, March 16, 2005.
Looking ahead, Mr. Balmuth commented, “For the 13 weeks ending April 30, 2005, we currently project that same store sales will grow 2% to 3% on top of a 3% increase in the prior year, and that earnings per share will be in the range of 33 to 36 cents, compared to 32 cents for the 13 weeks ended May 1, 2004. For the 2005 fiscal year ending January 28, 2006, we currently project that same store sales will increase by 4% to 5% and earnings per share will be in the range of $1.40 to $1.50, compared to estimated earnings per share for the 2004 fiscal year ended January 29, 2005 of $1.12 to $1.14, inclusive of the 6 cent write-down expense related to the Company’s former corporate office and distribution center in Newark, California. The projected earnings per share ranges for fiscal 2005 do not include any effect from stock option expensing targeted to become effective in the third quarter of 2005.”
“Our strong financial position and confidence in our future growth prospects allow us to enhance stockholder returns through a continuation of our share repurchase and dividend programs,” said Mr. Balmuth. “During fiscal 2004, the Company repurchased a total of 6.5 million shares of common stock for an aggregate purchase price of $175 million. During fiscal 2005, we expect to complete the $175 million remaining under the two-year $350 million stock repurchase authorization announced in early 2004.”
Mr. Balmuth continued, “In addition, our Board of Directors has declared an 18% increase in the quarterly cash dividend to a record 5 cents per common share, the eleventh consecutive annual increase in quarterly dividends. The first quarterly cash dividend at this new higher rate will be paid on or about April 1, 2005 to stockholders of record as of February 25, 2005.”
