The California-based off-price apparel and home fashion chain reported third quarter revenue increased 8% to $2.59 billion, with comparable store sales up 4% over the prior year. Earnings per share for the third quarter were 93 cents, up 16% from 80 cents a year ago. Results beat analysts expectations of $2.55 billion in revenue and 87 cents of earnings per share.
"These results were driven by our ongoing ability to deliver compelling bargains to our customers, which drove above-plan sales gains and strong merchandise gross margins," CEO Barbara Rentler said, adding, "Operating margin for the quarter grew 55 basis points due to a 40 basis point improvement in cost of goods sold and a 15 basis point decline in selling, general and administrative expenses."
Separately, TheStreet Ratings team rates ROSS STORES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROSS STORES INC (ROST) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."