Ross Earnings Rise

PLEASANTON, CA-Ross Stores Inc. posted slightly higher earnings for the first quarter ended April 30 and its same-store sales recover from 2004, the company reported Wednesday, also reporting better than expected results from its new dd’s Discounts chain. Ross earned $50.1 million for the quarter, or 34 cents per share, compared with $48.1 million and 31 cents per share for the first quarter of 2004. Sales for the first quarter increased 13% to $1.1 billion, from $992 million for the comparable quarter last year.

Comparable store sales for the same period grew 3% on top of a 3% gain in the same quarter of 2004, and Ross CEO Michael Balmuth indicated during Wednesday’s conference call that same store sales for the rest of this year should be free from some of the problems that plagued the company last year. Said Balmuth, “Last year, the problems associated with the implementation of our new merchandise information system contributed to same store sales that declined 3% in the second and third quarters.” The merchandise information system problems also produced flat comparable store sales in the fourth quarter last year, Balmuth said, but the company believes those problems are behind it.