Discount chain Ross Stores boosts 4th-qtr outlook after strong December sales

Department store chain Ross boosts 4Q outlook

PLEASANTON, Calif. — Retailer Ross Stores Inc. boosted its fourth-quarter outlook Thursday after posting sharply higher December sales.

Michael Balmuth, CEO of the discount department store chain, said it expects to earn $1.14 to $1.16 per share for the three-month period that ends Jan. 30.

That’s well ahead of the company’s previous forecast for profit of 88 cents to 94 cents per share.

Analysts surveyed by Thomson Reuters expected a profit of 98 cents per share.

Executives at the retailer, based in Pleasanton, Calif, said sales in locations open at least a year will likely climb 6 percent to 7 percent in January, up from a previous forecast for a rise of 4 percent to 5 percent.

December sales at stores open at least a year climbed 12 percent from 2008, nearly twice the 6.9 percent climb analysts surveyed by Thomson Reuters forecast.

Sales in stores open at least a year is a key retail measure because it tracks established locations and excludes sales at stores that open or close during the year.