--Ross, TJX post April same-store sales ahead of views
--Both companies boost quarterly earnings forecasts
--Quarterly sales also top consensus views
(adds details about merchandise channels, updates stock
prices)
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.
The companies acquire some merchandise through manufacturer
overruns and canceled orders and sell it at a discount. Ross and
TJX 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, the parent of retailers T.J. Maxx, Marshalls and
HomeGoods, 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 down 17 cents to $65.96 in recent trading,
while TJX climbed 47 cents to $50.87. The stocks are up 22% and
20%, respectively, so far this year.
Write to Lauren Pollock at lauren.pollock@dowjones.com
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