Ross Stores, Inc.(NASDAQ: ROST) stock lost over 5.8% on March 7th, 2018 (as of 1:03PM EST; Source: Google finance) hurt by lower than expected comparable stores sales outlook. For 2018, the Comparable store sales are forecasted to rise over 1% to 2%.
On the other hand, the group is planning to add about 100 new stores this year, with 75 Ross and 25 dd’s DISCOUNTS locations. The total sales are expected to rise in the range of 3% to 4% for the 52 weeks ending February 2, 2019 from 53 weeks ended February 3, 2018. Safer sales are forecasted to be up by 1% to 2%, while the group expects the operating margin for 2018, to be in the range of 13.3% to 13.5% against 14.5% in 2017.
The group delivered a 5% comparable store sales gain boosted by a combination of higher traffic and a rise in the size of the average basket. Operating margin rose 95 basis points to 14.6% during the fourth quarter which includes a 70 basis points from the 53rd week. The group’s Earnings per share rose to $1.19 during the fourth quarter as compared to $0.77 in pcp. For full year, the earnings per share rose to $3.55 from $2.83 in pcp. Total sales rose 16% to $4.1 billion during the quarter driven by broad-based performance across all major merchandise categories with children’s performing the best. Geographically, Florida was the strongest region.
For the first quarter of 2018, the overall sales are expected to rise in the range of 6% to 7%. The group intends to open 23 new Ross and 6 dd’s DISCOUNT locations during the quarter. First quarter operating margin is expected to be in the range of 14.6% to 14.8% against 15.2% in pcp.
Ross Stores stock rose over 29.5% in the last six months (as of 1:16PM EST; Source: Google finance). They bought 3 million of common stock for a total purchase price of $226 million during the quarter and bought 13.5 million for an aggregate price of $875 million during the year.