Ross Posts 12% Gain in 4th Quarter on Strong Sales
Ross Stores Inc., the nation’s fifth-largest women’s apparel retailer, said its earnings rose 12% to $45.6 million, or 97 cents a share, in its fiscal fourth quarter as shoppers favored its discounted brand-name clothing and home goods.
The Newark-based company was expected to earn 96 cents, the average estimate of analysts polled by First Call Corp. for the period ended Jan. 30.
Revenue rose 10% to $630 million. Sales at stores open at least a year rose 3%, on top of a 7% gain in the year-ago period.
So-called same-store sales are a key measure of a retailer’s performance because they exclude results from new or closed stores.
Ross focused on managing inventory levels and costs so it could take advantage of good deals from suppliers, and thus offer its customers an assortment of known brands for as much as 60% off regular store prices. Ross said last month it expected fourth-quarter results to exceed expectations after it had strong January sales.
Ross operates about 350 stores selling men’s and women’s clothing, shoes, fragrances and bed and bath products such as towels and sheets. It’s the No. 5 specialty clothing retailer in the U.S. based on revenue, behind Limited Inc., Gap Inc., TJX Cos. and Intimate Brands Inc.
At a Glance
Other earnings, excluding one-time gains and charges unless noted:
* Wet Seal Inc. said its earnings jumped 51% to $12.17 million, or 95 cents a share, in its fiscal fourth quarter from $8.84 million, or 63 cents, in the year-earlier period. Sales climbed 23% to $146 million at the Foothill Ranch-based company, which operates Wet Seal and Contempo Casuals apparel stores that target young shoppers. Sales at stores open at least a year grew 6%. The company said it expects to open about 35 stores this year.
* Giant Group Ltd. said its fourth-quarter net loss narrowed to $1.27 million, or 40 cents a share, from a loss of $2.83 million, or 89 cents, a year ago, including special items. The company’s loss from operations was $1.56 million, compared with $3.58 million in the 1997 fourth quarter. The latest results include a noncash loss in the company’s Checkers affiliate of $1.17 million. The year-ago figures include Giant’s share of its noncash loss of Rally’s Hamburgers Inc. of $322,000 for the quarter and $623,000 for the year. Los Angeles-based Giant Group owns a partial interest in the Rally’s and Checkers fast-food chains in addition to its luxury yacht operation.
