Ross Stores Q1 2017 earnings strong as off price retail wins

While department stores are floundering at retail, off price retailer Ross Stores reported its Q1 results with net sales up $30 million and a 7% increase in sales for the same quarter last year.

Ross Stores

Earnings per share increased $.09 per share and operational margin exceeded expectations at 15.2% as a result of above-plan sales and merchandise margin.

CEO Barbara Rentler dubbed the results "respectable growth in both sales and earnings... despite uncertainty and volatility in the external environment."

As the retail landscape continues to shift, consumers have declared their brick and mortar shopping preference is for off price shopping. While traditional department stores are shuttering their doors, Ross Stores is forecasting a bright future. It opened 88 additional stores this quarter over Q1 last year in both its Ross Dress for Less and DDs Discount chains.

Looking ahead at sales for the second quarter of 2017, Rentler said the company forecasts same store sales to increase 1% to 2% on top of last year's 4% gain.

Rentler also discussed the company's stock repurchasing actions as part of a two year plan with a $1.75 billion budget authorized by the Board of Directors. Specifically, the company bought back 3.3 million shares of common stock for $215 million this quarter and will be repurchasing stock throughout the year for a total of $875 million in this fiscal year.

With retailers declaring Chapter 11 Bankruptcy at an alarming pace, Ross is bucking that trend and showing just how much cash it has on for continuing its business.

 

Copyright © 2017 FashionNetwork.com All rights reserved.

FashionBusiness