Ross Stores Racking Up the Retail Sales - Corporate Offices & Headquarters

Ross Stores Racking Up the Retail Sales

Despite fears that big holiday discounts from rival stores might have hurt sales, Ross reported much better than expected fourth quarter results. Per share profit rose 10%, or 66 cents, which is a large increase over the estimated 2 cents that had been anticipated. Total revenue for the discounter rose 7% or $3.25 billion.

An amazing 4% same store growth was fueled by an increase in traffic as well as ticket size. MKM Partners analyst Roxanne Meyer stated that this signals strong growth through 2016 and upgraded the stock to a Buy with a $65 target price.

These results are quite impressive because shoppers were inundated with discounts and impressive markdowns from big companies such as Macy’s and Target, who were pushing winter apparel.

Investors were pleased, pushing shares up 2% to $57.33 Wednesday afternoon. While the stock is not a huge bargain, when you consider that earnings are expected to be in the range of 10 to 12% between 2016 ad 2017, this certainly makes this stock much more attractive.

Ross has raised its quarterly dividend by 14% to 13.5 cents. The company also has plans to repurchase up to $700 million in stock this year alone. Ross is publicly traded on the New York Stock Exchange under the ticker symbol: ROST.

 

 

 

Source: Barron’s

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