PLEASANTON, Calif. (AP) -- Ross Stores Inc. said Thursday that revenue at stores open at least a year rose 5 percent in January on rising sales of children's apparel, beating Wall Street expectations.
The Pleasanton, Calif., discount store posted a 7 percent same-store revenue increase for the entire fourth quarter, and set its 2012 profit guidance toward the mid-range of expectations.
Analysts polled by Thomson Reuters expected a January increase in revenue at stores open at least a year of only 3.7 percent. The metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Total sales for the quarter rose 12 percent to $2.4 billion from $2.15 billion in the prior-year period.
For the full year ended Jan. 28, overall sales rose 9 percent to $8.61 billion, compared to $7.87 billion the year before. Sales at stores open longer than a year rose 5 percent during the year, compared to the year before.
The company said it is boosting its quarterly dividend by 27 percent to 14 cents per share, payable March 30 to stockholders of record on Feb. 17.
Ross Stores also said that it bought back 11.3 million shares of stock during 2011 for $450 million. The company plans to buy back an additional $450 million in stock during the 2012 fiscal year.
The company set its earnings forecast for fourth quarter, year and next year in the mid-range of analyst expectations.
Ross Stores said it expects to earn between 84 cents and 85 cents per share. Analysts are expecting net income of 83 cents per share, according to FactSet.
For the full fiscal year, the company expects to earn between $2.85 per share and $2.86 per share. Analysts are expecting $2.84 per share.
The company expects that during the current fiscal year, which ends Jan. 26, 2013, it will earn sales at stores open longer than a year to rise by between 1 percent and 2 percent.
It expects earnings per share during the 2012 fiscal year to be between $3.12 and $3.27 per share. Analysts are expecting $3.21 per share.
Ross Stores said the extra week in fiscal year 2012 will boost earnings by about 8 to 9 cents per share.
The company forecast that during the first quarter of 2012, which ends April 28, sales at stores open longer than a year will rise between 1 percent and 2 percent from the prior year period.
Earnings per share during the first should be between 82 cents and 86 cents per share, the company said. Analysts are expecting net income of 85 cents per share, according to FactSet.
Shares rose 5 cents to $51.28 in afternoon trading.
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