Ross Stores, Inc. reported sales for the four weeks ended Jan. 29, 2011 of $441 million, an increase of 7% over the $411 million in sales for the four weeks ended Jan. 30, 2010. Same store sales for the four weeks ended Jan. 29, 2011 grew 3% on top of an 8% gain in the prior year period.
For the 13 weeks ended Jan. 29, 2011, sales rose 8% to $2.15 billion, from $1.980 billion for the 13 weeks ended Jan. 30, 2010. Comparable store sales for the quarter ended Jan. 29, 2011 increased 4% on top of 10% growth in the fourth quarter of 2009.
For the 52 weeks ended Jan. 29, 2011, sales grew 9% to $7.87 billion, compared to $7.18 billion in sales for the 52 weeks ended Jan. 30, 2010. Comparable store sales for the 52 weeks ended Jan. 29, 2011 rose 5% on top of a 6% gain in fiscal 2009.
Michael Balmuth, Vice Chairman and Chief Executive Officer, commented, “Our sales for both January and the fourth quarter of 2010 were well ahead of our expectations. Our quarterly increase is especially noteworthy considering it was achieved on top of our most difficult sales comparison of the year. Merchandise and geographic trends for January were relatively broad-based. Juniors and Dresses were the strongest merchandise categories during the month, while Florida and the Southwest were the top performing markets.”
New Two-Year $900 Million Stock Repurchase Program and 38% Dividend Increase
The company announced that its Board of Directors approved the repurchase of up to $900 million of its common stock over the next two years through fiscal 2012. At recent stock prices, this new authorization represents about 12% of the Company's total market value and a 20% increase over the prior program. This new and larger authorization replaces the $375 million remaining under the prior two-year $750 million stock repurchase program approved in January 2010.
The Board also raised the quarterly cash dividend to 22 cents per share, up 38% on top of a 45% increase in the prior year. This higher quarterly dividend is payable on March 31, 2011 to stockholders of record as of Feb. 18, 2011.
In commenting on these actions, Mr. Balmuth said, “Our larger two-year $900 million stock repurchase authorization and substantial increase in the quarterly cash dividend demonstrate our confidence in the Company's ongoing ability to generate significant amounts of excess cash after self funding the capital needs of our business. We have repurchased stock as planned every year since 1993 and have also raised our quarterly cash dividend annually since 1994. This consistent record of returning excess cash reflects our unwavering commitment to enhancing stockholder value and returns.”
Fourth Quarter and Fiscal 2010 Estimates
Based on January sales and margin results, the company is raising its profit forecast for the 13 weeks ended Jan. 29, 2011. Earnings per share are now estimated to increase 17% to 18% to $1.36 to $1.37, up from $1.16 for the 13 weeks ended Jan. 30, 2010. For the 52 weeks ended Jan. 29, 2011, earnings per share are estimated to grow about 31% to $4.62 to $4.63, up from $3.54 for the 2009 fiscal year ended January 30, 2010.
Fiscal 2011 Guidance
For the 2011 fiscal year ending Jan. 28, 2012, the company is forecasting same store sales to grow 1% to 2% on top of a 5% gain in the prior year, and projecting earnings per share of $4.90 to $5.10. This guidance range represents a forecasted earnings per share gain of 6% to 10% on top of an estimated 31% EPS increase for 2010 and 52% growth in 2009.
For the 13 weeks ending April 30, 2011, comparable store sales are forecast to be flat to up 1% on top of a substantial 10% gain in the first quarter of 2010. Earnings per share for the first quarter of 2011 are projected to be in the range of $1.27 to $1.32, up from $1.16 in the prior year. This guidance reflects forecasted EPS growth of 9% to 14% on top of a very large 61% increase in the first quarter of 2010.
In conclusion, Mr. Balmuth noted, “We are extremely pleased with the outstanding sales and estimated earnings gains in 2010 that are considerably ahead of our expectations. This performance is even more notable as it is on top of exceptional growth and record results in 2009. To put this in perspective, fiscal 2010 earnings per share are projected to almost double from the $2.33 we reported just two years ago in 2008. This significant accomplishment reflects our favorable position as a value retailer as well as the ongoing resilience and attractiveness of our off-price business model when our strategies are well-executed. As we look ahead, our long-term record of delivering growth in both healthy and more challenging economic climates gives us the confidence to continue to project respectable increases in both comparable store sales and earnings per share in 2011.”
