Ross Stores Q4 comparable sales increase 9 percent

Ross Stores, Inc. reported sales for the fourth quarter were 5 billion dollars, with comparable store sales up 9 percent versus the same period in 2019.

Total sales for 2021 grew 18 percent to 18.9 billion dollars, up from 16 billion dollars in fiscal 2019, with comparable store sales up 13 percent.

Commenting on the trading results, Barbara Rentler, the company’s chief executive officer, said: “We achieved strong sales results in the fourth quarter despite the negative impact from both the surge in Omicron cases during the peak holiday selling period and continued supply chain congestion.”

Ross Stores' financial performance and outlook

Fourth quarter earnings per share were 1.04 dollars on net income of 367 million dollars compared to 1.28 dollars per share on net earnings of 456 million dollars for the same quarter last year.

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

Looking ahead, Rentler said, “For the 52 weeks ending January 28, 2023, comparable store sales are forecast to be flat to up 3 percent versus a 13 percent gain in fiscal 2021. Earnings per share are projected to be 4.71 dollars to 5.12 dollars compared to 4.87 dollars in the prior year.”

“We are forecasting comparable store sales to be down 2 percent to 4 percent on top of a 13 percent gain for the 13 weeks ended May 1, 2021. Earnings per share for the first quarter are projected to be 93 cents to 99 cents versus 1.34 dollars in the prior year period, as we face larger headwinds from higher freight and wage costs early in the year.”

“Along with the large number of retail closures and bankruptcies over the last several years, we now believe that Ross Dress for Less can expand to about 2,900 locations, up from our prior target of 2,400, and that Dd’s Discounts can eventually become a chain of approximately 700 stores, versus our previous projection of 600,” Rentler added.

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

The company’s board has increased the quarterly cash dividend by 9 percent to 31 cents per share to be payable on March 31, 2022 to stockholders of record as of March 15, 2022.