Ross June sales top view, ups outlook
NEW YORK (Reuters) - Ross Stores Inc reported June same-store sales on Thursday that were much better than expected and raised its second-quarter earnings outlook, sending its shares higher.
The off-price retailer said June sales at stores open at least a year rose 8 percent, more than double analysts' average expectation for a 2.9 percent increase, according to Thomson Reuters Estimates.
Total sales rose 15 percent to $628 million in the five weeks ended July 5, said the company, which buys excess merchandise in bulk from manufacturers below wholesale prices.
Like rival TJX Cos Inc, Ross raised its second-quarter outlook, saying it now expects earnings to range from 51 cents to 53 cents, up from its prior range of 43 cents to 47 cents.
The company pointed to recent sales trends and its new expectation for July same-store sales to increase in a 2 to 4 percent range, up from a prior expectation for flat sales in July.
Ross said lower inventories were limiting the need for deep markdowns and aiding gross margin levels.
Ross shares rose as much as 4.7 percent in early trading but pared their gains and were up 1.8 percent to $38.16 in mid-morning trade on the New York Stock Exchange.
(Reporting by Martinne Geller; Editing by Tim Dobbyn)
