US off-price retailer Ross Stores Q1 FY21 net earnings jump to $476 mn

Ross Stores, a US-based chain of discount department stores, has reported sales growth to $4.5 billion in its first quarter (Q1) FY21 ended on May 1, 2021, compared to the sales of $1.8 billion in the corresponding quarter of previous fiscal. The company’s net earnings for the quarter increased to $476.5 million (Q1 FY20: loss $305.8 million).

 

“First quarter sales significantly exceeded our expectations as we benefited considerably from a combination of government stimulus payments, ongoing vaccine rollouts, easing of Covid restrictions, and pent-up consumer demand. In addition, customers responded enthusiastically to the broad assortment of great bargains we offered throughout our stores,” Barbara Rentler, chief executive officer at Ross Stores, said in a press release.

 

Cost of goods sold during Q1 FY21 was $3.2 billion ($1.8 billion), while selling, general and administrative expenses were $675.0 million ($415.3 million). The company’s total expenses for the quarter were $3.9 billion ($2.3 billion).

 

“Our results and the clear improvement in the macroeconomic environment make us optimistic about our prospects for the balance of the year. That said, it is difficult to precisely predict the lasting impact from the factors that benefited our first quarter sales results, especially the recent government stimulus payments. While we hope to do better, we are forecasting same store sales to be up 5-7 per cent for the 13 weeks ending July 31, 2021 versus the same period in 2019,” Rentler said.