Q4 Ross store comparable sales increase 9%

Ross Stores, Inc. reported fourth-quarter sales of $5 billion, with same-store sales up 9% from the same period in 2019.

Total sales for 2021 increased 18% to $18.9 billion from $16 billion in fiscal 2019, with same-store sales up 13%.

Commenting on the sales results, Barbara Rentler, Managing Director of the company, said: “We achieved strong sales results in the fourth quarter despite the negative impact of the surge in Omicron business during the peak holiday sales period. and continued supply chain congestion. ”

Financial performance and outlook for Ross Stores

Earnings per share for the fourth quarter were $1.04 on net income of $367 million compared to $1.28 per share on net income of $456 million for the same quarter last year.

For the 2021 fiscal year ended January 29, 2022, earnings per share were $4.87 on net income of $1.72 billion, compared to $4.60 per share on net income of $1.66 billion. dollars in 2019.

Looking ahead, Rentler said, “For the 52 weeks ending January 28, 2023, same store sales are expected to be flat 3% versus a 13% gain in fiscal 2021. Earnings per share should be $4.71 to $5.12. against 4.87 dollars the previous year.

“We expect comparable store sales to decline 2% to 4% on top of a 13% gain for the 13 weeks ended May 1, 2021. Earnings per share for the first quarter are expected to be 93 cents to 99 cents versus $1.34 in the prior year period as we face greater headwinds from higher freight and labor costs at the start of the year.

“In addition to the large number of store closures and bankruptcies over the past few years, we now believe that Ross Dress for Less can expand to approximately 2,900 locations, versus our previous target of 2,400, and that Dd’s Discounts can eventually become a chain of around 700 stores, compared to our previous projection of 600,” Rentler added.

Commenting on the long-term outlook, she said: “Looking to 2023 and beyond, we are targeting a return to double-digit earnings per share growth, driven by a combination of same-store sales gains, improved operating margin and accelerated new store openings. , and our ongoing share buyback program.

The company’s board of directors has increased the quarterly cash dividend by 9% to 31 cents per share which will be payable on March 31, 2022 to shareholders of record on March 15, 2022.

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