Ross Stores Lifts Its 3Q Profit Forecast

PLEASANTON, Calif. (AP) — Ross Stores Inc. boosted its third-quarter earnings outlook Thursday, mostly on favorable inventory conditions and stronger than expected sales and merchandise margins.

The discount retail chain said it now expects profit in a range of 75 cents to 77 cents per share, up from its previous forecast of 57 cents to 63 cents per share.

Analysts anticipate third-quarter net income of 63 cents per share, according to a Thomson Reuters poll. Analysts' estimates typically exclude one-time items.

Its shares rose 53 cents to $48.83 in morning trading after rising to a 52-week high of $50.50 earlier in the session.

The chain reported sales at stores open at least a year rose 8 percent in September and 4 percent for the year to date. Total monthly sales increased 12 percent, while year-to-date total sales climbed 9 percent.

In addition, Ross increased its full-year profit guidance to a range of $3.18 to $3.26 per share. Its prior outlook was for earnings in a range of $3 to $3.12 per share.

Analysts predict 2009 profit of $3.11 per share.

The company reaffirmed its forecast that sales at stores open a least a year will climb 5 percent to 6 percent during the holidays, with fourth-quarter profit of 88 cents to 94 cents per share.

Analysts expect fourth-quarter profit of 94 cents per share.

Ross Stores ran 939 Ross Dress for Less stores and 53 dd's Discounts as of Oct. 3.