Ross Stores, Inc. (ROST), the off-price retailer that operates Ross Dress for Less stores and dd’s Discounts stores in over 27 states, raised its second quarter earnings per share forecast after June sales jumped.
On July 9, the company reported June sales climbed 6% with same store sales gaining 1% in the month. For the first five months of the year, ending July 4, 2009, total sales rose 8% year over year. Same stores sales increased 3% compared to the first five months a year ago.
Dresses and Shoes were the strongest merchandise categories during June, while the best performing regions were the Southeast and the Mid-Atlantic.
The company’s value-oriented advertising is appealing to consumers who are looking for bargains. Ross Stores is bullish on the second quarter, which ends Aug 1. July sales are already trending slightly higher than expected.
It raised EPS guidance to a range of 73 to 75 cents from its previous forecast of 60 to 63 cents per share.
Ross Stores is a Zacks #1 Rank (strong buy) stock. Analysts expect year over year earnings growth of 16.27%.
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