Ross Stores, Inc. reported sales for the month of October increased 18% to $402 million from $342 million for October 2004. Comparable store sales during October rose 7% over the prior year.
For the 13 weeks ended October 29, 2005, sales rose 20% to $1.237 billion, compared to $1.028 billion for the 13 weeks ended October 30, 2004. Comparable store sales for the third quarter increased 9% over the prior year period.
Sales for the 39 weeks ended October 29, 2005 rose 17% to $3.533 billion, compared to $3.028 billion for the 39 weeks ended October 30, 2004. Year-to-date, comparable store sales increased 6% over the prior year period.
Michael Balmuth, vice chairman, president, and CEO said, “We are encouraged by the continued trend of stronger-than-expected sales during October. The month benefited from ongoing strength in our Shoes and Juniors categories. In addition, most of the higher-than-planned business during October continued to be driven by full-margin sales.”
Mr. Balmuth continued, “The earnings benefit from the ahead-of-plan sales and gross margin in the third quarter, however, is expected to be more than offset by higher-than-expected inventory shortage resulting from our recent physical inventory and related reconciliation of merchandise accounts payable. We believe the higher shrink in our stores was due in part to various systems-related issues we experienced over the past year. We are implementing an aggressive shortage control program in an effort to lower future shrink-related expense over time to historical levels. Our current, preliminary estimate is that earnings per share for the 13 weeks ended October 29, 2005 will be in the range of 25 cents to 26 cents, compared to 25 cents, as restated, for the 13 weeks ended October 30, 2004.”
