Ross Stores Reports Sales and Earnings Ahead of Expectations -- Earnings Review
By Aisha Al-Muslim
Ross Stores, Inc. (ROST) reported fourth-quarter results after the close of trading Tuesday. Here's what you need to know.
PROFIT: Net income for the off-price retailer was $450.7 million, or $1.19 a share, up from $300.6 million, or 77 cents a share, in the prior-year period. The fourth quarter included a per-share benefit of about 10 cents from a 53rd week for the year and 21 cents from the recently enacted U.S. tax overhaul. Analysts polled by Thomson Reuters were looking for adjusted earnings per share of 93 cents.
REVENUE: Sales rose 16% to $4.07 billion, ahead of the consensus forecast of $3.96 billion.
SAME-STORE SALES: Same-store sales increased 5%, beating the 3.1% FactSet estimate.
GUIDANCE: For 2018, ending Feb. 2, 2019, the company is forecasting same-store sales to grow 1% to 2%, compared with analysts' estimates of 2.6%. The company expects earnings per share of $3.86 to $4.03, compared with analysts' estimates of $3.93 a share. Ross plans to open about 100 new stores this year, consisting of 75 Ross Dress for Less and 25 dd's Discounts locations.
STOCK REPURCHASE AND DIVIDEND: The company's board of directors approved an increase in the stock repurchase authorization for 2018 to $1.075 billion, up from the previous $875 million. The board also approved a quarterly cash dividend of 22.5 cents a share, up 41% over the prior year, payable on March 30 to stockholders of record as of March 19.
STOCK MOVE: The stock has fallen 3.5% to $77.70 in after-hours trading Tuesday. Shares are up 19.5% in the last year.
Write to Aisha Al-Muslim at email@example.com
(END) Dow Jones Newswires
March 06, 2018 16:56 ET (21:56 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.