Ross Stores Raises Annual Profit Projection but Has Sales Promotions' Warning

   By Maria Armental 
 

Ross Stores Inc. on Thursday raised its projections for the year, following stronger-than-expected third-quarter results.

But the Dublin, Calif., company affirmed its projections for the quarter that ends Jan. 30, warning that it expects results in the key holiday season to be weighed down by sales promotions.

Ross now expects to make $2.45 to $2.48 a share for the year, up from its earlier view of $2.40 to $2.45. It ended fiscal 2014 with a profit of $2.21 a share, adjusted for its 2-for-1 stock split in June.

Shares, down 2% this year, rose 7.8% to $49.80 in late trading.

Ross, which started as a family-run junior department store chain in the San Francisco Bay Area, now operates more than 1,250 stores under the Ross Dress for Less and dd's Discount names.

Over all, for the period ended Oct. 31, Ross reported a profit of $215.7 million, or 53 cents a share, up from $192.7 million, or 46 cents a share, a year earlier.

Ross had projected 48 cents to 50 cents a share.

Sales rose 7% to $2.78 billion, compared with analysts' projected $2.77 billion.

Meanwhile, sales at stores open for at least 15 months rose 3%, topping the company's projection of a 1% to 2% increase. Last year, the company reported a 4% increase in comparable sales.

Gross profit margin improved to 28% from 27.6% a year earlier.

It affirmed its projections for the quarter that ends on Jan. 30.

Write to Maria Armental at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 19, 2015 19:41 ET (00:41 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.