Ross Stores 3Q profit rises on lower inventories

posted: 82 DAYS 14 HOURS AGO

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PLEASANTON, Calif. -Ross Stores Inc. said Thursday that reduced inventories helped push its profit 83 percent higher in the third quarter.

But the discount retail chain, still wary of economic uncertainty, issued guidance that fell short of Wall Street expectations.

Ross earned $105.1 million, or 84 cents per share, for the period ended Oct. 31. That's up sharply from $57.3 million, or 44 cents per share, a year earlier.

The results met the expectations of analysts surveyed by Thomson Reuters, whose estimates generally exclude one-time items.

The chain said shoes and dresses were among its best performers in the quarter, with the Southeast and Mid-Atlantic still its strongest regions.

Total sales rose 12 percent to $1.74 billion from $1.56 billion as sales at stores open at least a year climbed 8 percent.

The results topped the $1.73 billion in total sales that analysts expected.

Ross maintained its guidance for a profit of 88 cents to 94 cents per share for the fourth quarter, below analysts' forecast for earnings of 99 cents per share. The retailer boosted its full-year earnings outlook to a range of $3.27 to $3.33 per share. The chain previously predicted an annual profit of $3.18 to $3.26 per share. Wall Street expects a profit of $3.37 per share for the year.

The company's stock fell $1.34, or 2.9 percent, to $44.73 in midday trading. Over the past year, the stock has traded in a range of $21.70 to $50.50.

2009-11-19 11:55:49