Ross Stores Inc.
), one of the largest off-price apparel and home fashion chain
retailers in the U.S., came up with stronger-than-expected sales
and same-store sales numbers for the four weeks ended August 25,
Driven by strong consumer demand for the company's wide array of
brands during the back-to-school sales season, Ross Stores'
comparable store sales for August increased 8% compared with 4% in
the prior-year period ended on August 27, 2011. Consequently, the
company's total sales for the four-week period surged 13% to $747
million compared with $659 million in the year-ago period.
Further, Ross Stores reported seven months comparable store
sales gain of 8% versus a 4% increase registered in the year-ago
period. Net sales for the period rose 13% to $5,445 million from
$4,823 million in the year-ago quarter.
Robust sales mainly mirror the company's relentless focus on
offering exciting collection in its name-brand fashion for the
family and home, which appeals to its value-oriented customers.
Looking ahead, the company has provided its same-store sales
growth expectations for the month of September and October. Ross
Stores expects same-store sales to grow in the range of 2% - 3% in
September and 3%- 4% in October, 2012.
One of Ross Store's competitors,
), registered a 9% rise in its August 2012 comparable store sales.
The company's another competitor,
), also reported positive same-store sales of 21% for the month of
Ross Stores has implemented a micro-merchandising tool, through
which the company expects to enhance its total sales and
profitability by targeting expansion in its existing markets.
Moreover, Ross remains focused on new store growth, share buybacks
and attractive dividend payouts even as many other retailers are
implementing dramatic cutbacks, and has the financial strength to
continue its course and build shareholder value.
Ross Stores' shares maintain a Zacks #2 Rank, which translates
into a short-term Buy rating.
Ross Stores and its subsidiaries operate two chains of off-price
retail apparel and home accessory stores in the U.S. These stores
offer branded apparel, shoes, and accessories for the entire
family, as well as gift items, linens, and other home-related
merchandise. The company also offers small furniture and furniture
accents, educational toys and games, luggage, gourmet food and
cookware, watches, sporting goods and fine jewelry, which provide
it with a competitive edge over its rivals.
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