Ross Stores reported that sales grew 13% to $579 million for the five weeks ended January 1, 2005, compared to $513 million for the five weeks ended January 3, 2004. December comparable store sales grew 2% in 2004 on top of a 4% gain in the prior year period.
For the 48 weeks ended January 1, 2005, sales rose 8% to $3.998 billion, compared to $3.699 billion for the 48 weeks ended January 3, 2004. Comparable store sales for the same year-to-date period declined 1%.
In commenting, Michael Balmuth, Vice Chairman and Chief Executive Officer, said, “We are pleased to report that December sales were stronger than planned, benefiting from strength in the Accessories, Shoes and Home businesses as well as strong sell-through of clearance product throughout the store. Based on recent trends, we are now forecasting relatively flat same store sales in January on top of a 4% gain in the prior year. Earnings per share for the 13 weeks ending January 29, 2005 are now projected to be approximately $.33 to $.35, compared to $.48 for the 13 weeks ended January 31, 2004. We also forecast that earnings per share for the 52 weeks ending January 29, 2005 will be approximately $1.12 to $1.14, inclusive of the $.06 write-down expense related to the Company’s former corporate office and distribution center in Newark, California. Earnings per share for the 52 weeks ended January 31, 2004 were $1.47. We expect to report final fourth quarter and fiscal 2004 results on Wednesday, March 16, 2005.”
Looking ahead to fiscal 2005, Mr. Balmuth continued, “Our preliminary forecast is for earnings per share growth of approximately 20% to 25% for the 2005 fiscal year ending January 28, 2006, on top of forecasted earnings per share in fiscal 2004 of $1.18 to $1.20 before the aforementioned $.06 write-down. Our projections for the 2005 fiscal year include a 4% to 5% increase in same store sales, about 12% unit expansion for Ross, and the opening of another 10 dd’s DISCOUNTS(SM) stores. We plan to provide more detailed operating statement assumptions for fiscal 2005 and the first quarter ending April 30, 2005 with the January sales release on Thursday, February 3, 2005.”
