Ross Stores reported sales of $362 million for the four-week period ended July 30, 2005, a 17% increase above the $309 million in sales reported for the four weeks ended July 31, 2004. Comparable store sales for the same period increased 7% over the prior year.

For the 13 weeks ended July 30, 2005, sales were $1.172 billion, a 16% increase over the $1.009 billion in sales reported for the 13 weeks ended July 31, 2004. Comparable store sales for the second quarter rose 7% over the prior year.

For the six months ended July 30, 2005, sales totaled $2.296 billion, up 15% over the $2.000 billion in sales for the six months ended July 31, 2004. Comparable store sales for the first six months of 2005 grew 5% over the prior year.

Michael Balmuth, Vice Chairman, President and Chief Executive Officer, stated, “Sales in July were slightly ahead of our expectations, benefiting from continued strength in the back-to-school businesses of Juniors and Shoes. However, due to higher than planned markdowns during the second quarter, we now estimate that earnings per share for the 13 weeks ended July 30, 2005 will be $.28 to $.29. Although we are encouraged by the improved sales trend during July, higher than expected clearance levels as we end the month are now projected to pressure third quarter gross margin and earnings per share as well.”

Mr. Balmuth continued, “Markdowns year-to-date have consistently been higher than expected. Although there are business reasons for the increased level of markdowns, we also think that the numerous learnings related to new system processes, procedures and information flow have been contributing factors as well. We have addressed most of these transitional issues with various system enhancements, modifications to processes and procedures and additional user training and believe their overall impact on margins should diminish going forward.”

Mr. Balmuth concluded, “We plan to provide detailed third quarter guidance and assumptions on our conference call on Wednesday, August 17th, 2005, when we hope to have more visibility into early fall sales and margin trends.”