Ross Stores Inc. on March 6 beat analyst expectations on EPS for the fiscal fourth quarter of 2017 and posted results across the board that came in higher than the year-ago period.
Diluted EPS for the fiscal fourth quarter ended Feb. 3 increased to $1.19 from 77 cents in the same quarter of the prior year. The S&P Capital IQ mean consensus estimate for EPS was 93 cents.
Ross reported net earnings for the quarter jumped to $450.75 million, compared to the $300.57 million reported in the year-ago quarter. Ross' sales also increased to $4.07 billion, up from $3.51 billion in the year-ago period.
Comparable store sales rose 5%, compared to a 4% gain in the same period last year.
The company also announced the approval of an increase in the stock repurchase plan for 2018 to $1.08 billion, up from $875 million, and a higher quarterly cash dividend of about 23 cents per share, up 41% from the year prior. That dividend is payable March 30 to stockholders on record March 19.
In its outlook for fiscal 2018, which ends Feb. 2, 2019, the company said it expects EPS in the range of $3.86 to $4.03, above EPS of $3.55 in fiscal 2017. Same-store sales are expected to grow 1% to 2% on top of 4% gains in the previous three years. Ross anticipates opening around 100 new stores during the year, including 75 Ross Dress for Less locations and 25 dd's Discounts locations.
Ross also anticipates EPS of $1.03 to $1.07 in the first fiscal quarter of 2018, compared to 82 cents reported in the first fiscal quarter of 2017, ended April 29, 2017. Comparable store sales are expected to increase 1% to 2% for the fiscal first quarter, ending May 5.
In a statement, Barbara Rentler, CEO and director of Ross, said the guidance includes a per-share benefit of about 69 cents for the upcoming fiscal year and 16 cents for the first fiscal quarter from federal tax reform.
"In addition, our 2018 ranges reflect our plans to make competitive wage and benefit-related investments, including raising our minimum wage to $11 per hour," she said.
For the full fiscal year 2017, Ross posted diluted EPS of $3.55, compared to the diluted EPS of $2.83 reported in fiscal 2016. The S&P Capital IQ mean consensus estimate for EPS was $3.29.
