PLEASANTON, Calif. (AP) -- Discount store operator Ross Stores Inc. has lifted its fourth-quarter earnings forecast above analysts' estimates after December revenue in its stores open at least a year came in way ahead of Wall Street's expectations.
Ross posted a 9 percent increase in so-called same-store revenue — more than double the 4.2 percent rise that analysts surveyed by Thomson Reuters had forecast. Shoppers particularly snapped up shoes and juniors clothing, helping drive total revenue for the five weeks ended Dec. 31 up 14 percent to $1.15 billion.
The strong holiday showing comes at a time when consumers are continuing to focus on price and look for bargains due to the uncertain economy and high unemployment rate. Revenue in stores open at least a year is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
The Pleasanton, Calif.-based retailer said its strong sales and solid margin trends prompted it to raise quarterly earnings guidance to a range of 82 cents to 83 cents per share. Previously, it forecast profit per share of 77 cents to 80 cents. Analysts expect earnings of 80 cents per share for the quarter, according to FactSet. The new forecast marks a roughly 20 percent jump over the company's profit in the 2010 quarter.
Ross Stores said that its current and prior-year earnings per share have been adjusted to account for a two-for-one stock split.
Ross Stores has 1,038 stores in 29 states, the District of Columbia and Guam.
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