Ross Stores, Inc. (NASDAQ: ROST) stock rose over 0.2% on 24th August, 2018 (as of 9:39 AM GMT-4; Source: Google finance) after the company reported better than expected results for the second quarter 2018. Net earnings have increased to 389 million US dollars in the second quarter. The profit margin of the company increased to 10.4 percent compared to 9.2 percent a year ago
ROST in the second quarter of FY 18 has reported the adjusted earnings per share of $1.04, beating the analysts’ estimates for the adjusted earnings per share of $1.01 as per Zacks Investment Research. The company had reported the adjusted revenue growth of 9 percent to $3.74 billion in the second quarter of FY 18, beating the analysts’ estimates for revenue of $3.66 billion. The comparable store sales is up 5% over the 13 weeks ended August 5, 2017. This is on top of a 4% increase in same store sales for the 13 weeks ended July 29, 2017.
During the second quarter and first six months of FY18, the company has repurchased 3.2 million and 6.5 million shares of common stock, respectively, for an aggregate price of $273 million in the second quarter and $529 million year-to-date. The company expect to buy back as per the plan a total of $1.075 billion in common stock during FY18
ROST project same store sales is expected to grow 1% to 2% for both third and fourth quarters. If sales perform in line as per the guidance, earnings per share for the third quarter ending November 3, 2018 are forecasted to be in the range of $.84 to $.88, up from $.72 a year ago. For the 13 weeks ending February 2, 2019, earnings per share are projected to be in the range of $1.02 to $1.07 versus $1.19 for the 14 weeks ended February 3, 2018. The earnings per share for the 52 weeks ending February 2, 2019 are now expected to be in the range of $4.01 to $4.10
Additionally, ROST has raised the long-term projected store potential to 3,000 locations, up from the previous target of 2,500. The company expect that Ross Dress for Less is expected grow to about 2,400 locations across the country, up from the prior target of 2,000, and that dd’s DISCOUNTS can ultimately become a chain of approximately 600 stores, compared to the previous projection of 500.