Ross Stores’ 1st-Quarter Earnings Rise

Ross Stores Inc. said fiscal first-quarter earnings rose a greater-than-expected 19% as it boosted sales by offering a wider assortment of brand-name apparel and better controlling inventory. Profit before a charge rose to $28.3 million, or 58 cents a diluted share, from $23.8 million, or 47 cents, a year earlier. The Newark-based discount chain had been expected to earn 55 cents a share. Sales rose 9%, to $484 million from $443 million. Ross said it widened its selection of brand-name products, which helped sales at stores open at least a year rise 4%. It also credited its strict management of inventory and “opportunistic buying,” in which it buys close-out and returned merchandise from other retailers. Ross said unseasonably cool, wet weather in its key West Coast and Mid-Atlantic markets will push back some May sales to June. As a result, it is “cautiously optimistic” about future 1998 earnings. Ross operates 331 off-price retail stores. Shares rose 44 cents to close at $41.63 on Nasdaq.