Strong home sales helped Ross Stores turn in a solid second quarter and top Wall Street estimates.
Net earnings were $446.3 million, or $1.32 per diluted share, versus $384.5 million, or $1.11 per diluted share, in the year-prior quarter, Ross reported.
An analyst consensus estimate published by Zacks Investment Research called for earnings per diluted share of $1.17 on revenues of $4.7 billion.
Comparable sales gained 5% in the quarter year over year, the company noted. Overall sales were $4.93 billion versus $4.58 billion in the prior-year period.
In a conference call, Barbara Rentler, Ross CEO, said home merchandise had performed above the chain average in the second quarter and that the company feels that it has significant growth potential in the category.
She added that Ross opened 18 new namesake and nine dd’s Discount locations in the quarter, and remains on track to open about 100 locations this year, with around 75 Ross and 25 dd’s added.
In announcing the second quarter results, Rentler said, “We are pleased with our second quarter results, with both sales and earnings well above our expectations. Along with easing inflationary pressures, customers responded well to our improved value offerings throughout our stores. Second quarter operating margin was flat to last year at 11.3%.”
