Ross Stores, Inc. posted a 1% increase in comparable sales for the month after a 7% gain during July of last year. Net sales totaled $397 million for the month, a 10% increase over $362 million in sales last year.
For the 13 weeks ended July 29, 2006, sales were $1.308 billion, a 12% increase over the $1.172 billion in sales reported for the 13 weeks ended July 30, 2005. Comparable store sales for the second quarter rose 4% on top of a 7% increase in the prior year.
For the six months ended July 29, 2006, sales totaled $2.600 billion, up 13% over the $2.296 billion in sales for the six months ended July 30, 2005. Comparable store sales for the first six months of 2006 grew 5% on top of a 5% increase in the prior year.
Michael Balmuth, Vice Chairman, President and Chief Executive Officer, stated, “July sales were below plan, as business unexpectedly slowed across most markets and merchandise categories. Nevertheless, based on healthy sales gains for the second quarter overall, we are reiterating our prior forecast for earnings per share for the 13 weeks ended July 29, 2006 to be at the high end of our $.30 to $.32 range.”
Mr. Balmuth continued, “Solid sales of seasonal clearance in July were more than offset by below-plan sales of transitional and early fall merchandise. Even though we believe that unseasonably warm weather contributed somewhat to this shortfall, the sudden slowdown in our business increases our concern going forward. We expect to have better visibility into the competitive climate and our initial back-to-school sales and margin trends when we report second quarter earnings on August 16th. Our outlook for the second half of 2006 along with monthly comparable store sales guidance and detailed operating statement assumptions for the third quarter will be provided on the conference call.”
