US: Strong sales boost Ross Stores Q3 profit
- Q3 profit up 11% to $159.5m
- Sales increased 11% to $2.26bn
- Operating margin rose 35 basis points to 11.3%
Strong sales and lower expenses have helped off-price retailer Ross Stores book a better-than-expected rise in third-quarter net profit, but it issued a cautious outlook for the all-important holiday season.
Net earnings increased 11% to US$159.5m during the quarter ended 27 October, compared to $144m the prior year. The clothing and footwear retailer, which operates 1,097 stores with sales up 11% to $2.26bn and comparable store sales climbing 6%.
Operating margin rose about 35 basis points to 11.3% as a result of higher merchandise margin, lower distribution costs and leverage on occupancy and general, selling and administrative expenses.
However looking ahead, Michael Balmuth, vice chairman and chief executive officer, said: "During the holiday season it is always difficult to predict how promotional other retailers may become or how current macro-economic and political uncertainties may impact consumer spending.
"We are also anniversarying the robust 7% increase in same store sales from last year's fourth quarter. So, while we hope to do better, we believe it is prudent to maintain our prior fourth quarter guidance."
The following is a general roundup of US apparel and shoe retailers' February 2013 sales results. It is worth noting that from this month, a number of retailers are no longer reporting their sales res...
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