By Lauren Pollock
Discount retailers Ross Stores Inc. (ROST) and TJX Cos. (TJX)
raised their outlooks for the fiscal first quarter as sales beat
expectations and same-store sales for April also topped views.
Both companies buy merchandise from department stores and sell
it at a discount. They have continued to post profit growth while
attracting bargain-hunting consumers amid a sluggish economy.
"We are pleased with the above-plan sales and margin gains we
achieved for both April and the first quarter, especially
considering our very strong prior-year comparisons," Ross Chief
Executive Michael Balmuth said. "These results were driven by our
ongoing ability to deliver compelling bargains to today's
value-focused customers."
For the quarter ended Saturday, Ross expects earnings of $1.06
to $1.07 a share, versus its prior view of slightly above the high
end of $1 to $1.04. Sales rose 6% to $2.54 billion, while Wall
Street was looking for $2.52 billion. Same-store sales edged up
3%.
Also, April same-store sales rose 7%, topping the 5% to 6%
growth the company projected. The company expects to report
quarterly results May 23.
Meanwhile, TJX raised the low end of its earnings view for the
quarter ended Saturday by one cent, now projecting 61 cents to 62
cents a share. Sales rose 7% to $6.2 billion, topping the $6.16
billion consensus view, while same-store sales rose 2%.
"Customer traffic drove comp increases at all divisions, as
consumers responded to our extremely fresh selections of branded
spring apparel," Chief Executive Carol Meyrowitz said.
"As we enter the second quarter, May is off to a strong start
and our inventory levels are in an excellent position for us to buy
into the enormous amount of quality opportunities we are seeing in
the marketplace."
For April, same-store sales rose 8%, which the company said was
at the high end of its view and topping the 6.8% growth projected
by analysts polled by Thomson Reuters. The company will report
results May 21.
Ross shares were inactive premarket, while TJX declined 0.8% to
$50.01.
Write to Lauren Pollock at lauren.pollock@dowjones.com
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