• Q2 earnings up 22.8% 
  • Sales rose 12% to $2.34bn
  • FY guidance upped to $3.36 to $3.44

Value-priced clothing and footwear retailer Ross Stores has raised its full-year earnings guidance after better-than-expected sales boosted its second-quarter profit.

Net earnings for the 13 weeks ended 28 July jumped 22.8% to US$182m. Earnings before taxes were up 22.9% to $297m. Sales increased 12% to $2.34bn, while comparable store sales climbed 7%. 

Operating margin rose around 110 basis points to 12.8% thanks to an 80 basis point improvement in the cost of goods sold, coupled with a 30 basis point reduction in selling, general and administrative expenses.

"Our strong sales and earnings growth...continues to be driven by our ability to deliver compelling name brand bargains to today's value-focused consumers while strictly controlling both inventories and expenses," said vice chairman and CEO Michael Balmuth.

Ross stores now expects full-year earnings per share to be in the range of $3.36 to $3.44, compared to previous guidance of $3.12 to $3.27.