Ross Stores 4tg-qtr profit up 47 percent on sales gains as shoppers keep looking for bargains

Ross Stores 4Q profit rises on sales gain

PLEASANTON, Calif. — Ross Stores Inc. said Thursday that its fourth-quarter profit rose nearly 47 percent on a gain in sales of staples like shoes and home items as shoppers kept looking for bargains in the recession.

The discount retail chain said it earned $142.9 million, or $1.16 per share, for the period ended Jan. 30. That’s up from $97.4 million, or 76 cents per share, a year earlier.

The results met the expectations of analysts surveyed by Thomson Reuters, who predicted earnings per share of $1.16 on revenue of $1.96 billion. Their estimates generally exclude one-time items.

Revenue rose 14 percent to $1.98 billion from $1.73 billion last year.

Sales at stores open at least a year — a key figure in retailing — rose 10 percent in the quarter compared to the prior year.

For the fiscal year, the company earned $442.8 million, or $3.54 a share. That’s up 45 percent from $305.4 million, or $2.33 a share, in the prior year.

Revenue rose more than 10 percent to $7.18 billion from $6.49 billion.

Sales at stores open at least a year rose 6 percent in fiscal 2009. That’s a key figure in retailing because it measures growth at existing stores, rather than new ones.

CEO Michael Balmuth said the company’s best performing categories in the quarter and year were shoes, home and dresses and all regions saw strong gains in the period.

Shares of Ross Stores fell $1.11 or 2 percent to $52.85 in morning trading Thursday.