• Q2 earnings up 12%
  • Sales grow 7%
  • Earnings at high end of management guidance

Off-price fashion retailer Ross Stores has booked second-quarter earnings in line with analyst consensus and at the high end of management guidance.

Net earnings for the quarter ended 2 August grew 12% to US$239.6m, or $1.14 per share, up from $213.1m, or $0.98 per share, last year.

The results were $0.06 above Stifel analysts' estimate and at the high end of management's guidance. Results benefited by $0.02 per share due to a favourable resolution of a legal matter. Excluding this benefit, EPS increased 14%.

Sales increased 7% to $2.73bn, compared to $2.55bn in the second quarter of 2013. Comparable store sales grew 2%.

CEO Barbara Rentler, said: "Our second quarter sales performed at the high-end of our expectations as today's value-focused consumers continued to respond to our wide assortment of competitive name brand bargains."

Stifel analyst Richard Jaffe, noted: "Solid results on top of strong year-on-year comparisons as the off-price sector remains favoured with customers who are responding positively to the company's competitively priced, appealing, nationally recognized, branded merchandise."

For the third quarter, earnings per share are projected to be $.83 to $.87, up from $.80 in last year's quarter.