Ross Stores Q1 Net Rises 4 Percent
DUBLIN, Calif.-Thanks to rising sales and controlled expenses, Ross Stores posted a first-quarter net-income gain of 4 percent, to $243.9 million.
Net sales in the quarter, which ended on May 3, picked up 5.5 percent to finish at $2.7 billion. This included a same-store sales gain of 1 percent. According to Michael Balmuth, Ross' vice chairman and CEO, sales picked up momentum as the quarter moved along, after a rough start due to the severe winter weather and a challenging retail environment.
Selling, general and administrative expenses rose 4.9 percent in dollars but shed eight basis points as a percentage of sales, to 14.2 percent. Gross margin was down 36 basis points to 28.8 percent.
Balmuth predicted that second-quarter same-store sales would rise by from 1 to 2 percent.