Ross Stores, Inc. saw five-week fiscal January net sales grow 38% to $399 million from $289 million in sales for the four-week period last year. The fifth week of the month added approximately $88 million in sales. Same store sales for the copmarable four-week periods increased 2% on top of a 9% gain for the same period last year.
For the 14 weeks ended February 3, 2007, sales increased 14% to $1.608 billion, from $1.411 billion in sales for the 13 weeks ended January 28, 2006. Comparable store sales for the 13 weeks ended January 27, 2007 increased 1% on top of a 6% gain for the 13 weeks ended January 28, 2006.
For the 53 weeks ended February 3, 2007, sales grew 13% to $5.570 billion, from $4.944 billion in sales for the 52 weeks ended January 28, 2006. Same store sales for the 52 weeks ended January 27, 2007 increased 4% on top of a 6% increase for the 52 weeks ended January 28, 2006.
Estimated Results for Fiscal Fourth Quarter and Full Year 2006
Michael Balmuth, Vice Chairman, President and Chief Executive Officer, commented, “Both our January and fourth quarter sales results were in line with our forecast for a 1% to 3% increase in comparable store sales. During January, the Mid-Atlantic and the Southwest were the strongest regions, while Home and Juniors were the strongest performing merchandise departments.”
Mr. Balmuth continued, “As a result, based on these sales results and our forecast for solid improvement over the prior year in fourth quarter operating margin, we now estimate that earnings per share for the 14 and 53 week periods ended February 3, 2007 will be about $.65 to $.66 and $1.69 to $1.70, respectively. Forecasted results for the fourth quarter and 2006 fiscal year are inclusive of operating income equivalent to about $.07 per share from the 53rd week, partially offset by stock option related expenses equivalent to about $.01 to $.02 per share for the quarter and $.06 per share for the year. Earnings per share for the 13 and 52 weeks ended January 28, 2006 were $.49 and $1.36, respectively.”
Forecasted Earnings per Share for the 2007 First Quarter and Fiscal Year
Looking ahead, Mr. Balmuth said, “For the 52 weeks ending February 2, 2008, we are forecasting same store sales gains of 2% to 3% and projecting earnings per share in the range of $1.85 to $1.95. For the 13 weeks ending May 5, 2007, we are targeting same store sales growth of 1% to 2% on top of a 6% gain in the prior year, and projecting that earnings per share will be in the range of $.46 to $.48, compared to $.41 in the prior year.”
Mr. Balmuth continued, “We are planning about 90 net new store locations in 2007, for 11% to 12% unit growth, consisting of approximately 63 Ross stores and 27 dd's DISCOUNTS® locations. Our targeted expansion in 2007 includes about 40 former Albertsons sites located across many of our top performing, established Sunbelt markets in California, Arizona, Texas, Florida, Colorado and Oklahoma. About half of these former Albertsons locations will reopen as Ross Dress for Less locations and half as dd's DISCOUNTS stores. We are pleased to report that average sales and operating profitability across our existing 26 dd's DISCOUNTS locations outperformed our expectations in 2006. These stronger-than-planned results give us the confidence to accelerate the growth of this promising concept into additional new Sunbelt markets that, like California, feature a range of demographics that we believe are favorable for both Ross and dd's DISCOUNTS.”
Board Approves 25% Increase in Quarterly Dividend
“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 2006, the Company repurchased a total of 7.1 million shares of common stock for an aggregate purchase price of $200 million. During fiscal 2007, we expect to complete the $200 million remaining under the current two-year $400 million stock repurchase authorization.”
Mr. Balmuth continued, “In addition, our Board of Directors recently declared a 25% increase in the quarterly cash dividend to a record $.075 per common share, our 13th consecutive annual increase. The first quarterly cash dividend at this new higher rate will be paid on or about March 30, 2007 to stockholders of record as of February 23, 2007.”
