Ross Stores, Inc. reported sales of $422 million for the month ended April 29, 2006, an 18% increase above the $357 million in sales for the four weeks ended April 30, 2005. Comparable store sales for the month increased 9% over the prior year.
For the 13 weeks ended April 29, 2006, sales totaled $1.292 billion, a 15% increase above the $1.124 billion in sales for the 13 weeks ended April 30, 2005. Comparable store sales for the first quarter of 2006 increased 6% over the prior year.
In commenting, Michael Balmuth, Vice Chairman, President and Chief Executive Officer, stated, “Our solid sales gains during April benefited from strength across many geographic markets and merchandise categories. Based on better than expected revenues in the first quarter, we now estimate that earnings per share for the 13 weeks ended April 29, 2006 will be about $.40 to $.41, which includes projected non-cash charges equivalent to about $.01 to $.02 per share related to adoption of FAS No. 123®, 'Share-Based Payment.' This compares to earnings per share of $.34 for the 13 weeks ended April 30, 2005.”
Mr. Balmuth continued, “We ended the first quarter with slightly higher-than-planned clearance levels, which are expected to put some pressure on second quarter gross margin. With the later Easter holiday this year, we were more aggressive in marking down first quarter receipts in April. We also have become somewhat more concerned about the external environment. Sharp increases in gas prices are further pressuring our freight costs, while also increasing the potential risk to consumer spending and the competitive climate.”
“Despite these issues, we are maintaining our same store sales projection for the 13 weeks ending July 29, 2006 of up 3% to 4% and reiterating our forecasted earnings per share range of $.30 to $.32 for the second quarter, which includes projected non-cash charges equivalent to about $.01 to $.02 per share related to adoption of FAS No. 123®. This forecast compares to earnings per share of $.29 for the quarter ended July 30, 2005,” said Mr. Balmuth.
