Higher sales and margins have helped lift second quarter profit by 25% at off-price retailer Ross Stores Inc.
Net earnings jumped to $129.3m or $1.07 per share in the three months to 31 July, from $103.4m or $0.82 per share a year earlier.
Sales increased 8% to $1.912bn, with comparable store sales up 4%. Operating margin grew about 140 basis points to 11.1%.
“Our profit growth is especially noteworthy, considering it was on top of robust double digit gains in the prior year,” said vice chairman and CEO Michael Balmuth. “The best performing merchandise categories were home, dresses and shoes.”
Faced with tough comparisons in the second half of the year, the company said it is “maintaining a somewhat cautious outlook” for the second half.
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