Ross Stores Inc. proved it’s a good time to be an off-pricer, on Wednesday posting double-digit earnings and sales growth in the second quarter while boosting expectations for the year.
Net income for the quarter shot up 40.2 percent to $71.3 million, or 54 cents a diluted share, compared with $50.9 million, or 37 cents, a year ago. Sales advanced 13.6 percent to $1.64 billion from $1.44 billion as comparable-store sales rose 6 percent.
For the six months, earnings jumped 27.9 percent to $150.8 million, or $1.13 a diluted share, on a 12 percent rise in sales to $3.2 billion.
Ross managed to push comps up 4 percent in California and Florida, two of the markets hit hardest by the fallout in the housing market.
Dresses, accessories and shoes were the strongest sellers at the chain, which said it benefited from the $600 tax rebate checks sent to consumers and the favorable weather during the quarter.
A down economy can be a boon for off-pricers. Not only do they sell branded goods at a discount, but they pick up better deals when their full-price competitors are trying to thin inventories. The TJX Cos., an off-price competitor, also posted strong second-quarter results last week, with earnings up 239 percent.
“During these times, we benefit from the increased supply of great brands at significant discounts like we continue to see today,” said Michael Balmuth, vice chairman, president and chief executive officer, on a conference call with analysts.
Despite the strong results so far this year, the retailer, which operates 817 Ross and 45 dd’s Discounts stores, said it is taking a cautious approach and maintaining plans for a 2 to 3 percent comp-sales gain in the back half given uncertainty in the economy. The Pleasanton, Calif.-based Ross is looking for earnings of $2.33 to $2.38 a share for the full year, up from previous projections of $2.19 to $2.29. Last year, Ross had profits of $1.90 a share.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty