Research Desk Line-up: Genesco Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Ross Stores, Inc. (NASDAQ: ROST), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ROST, following the Company's reporting of its second quarter fiscal 2017 financial results on August 17, 2017. The discount retailer outperformed top- and bottom-line expectations and provided guidance for upcoming quarters and full year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Genesco Inc. (NYSE: GCO) for due-diligence and potential coverage as the Company reported on August 31, 2017, its financial results for Q2 FY18 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Genesco when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ROST; also brushing on GCO. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=ROST

http://protraderdaily.com/optin/?symbol=GCO

Earnings Reviewed

For the three months ended July 29, 2017, Ross Stores' sales rose 8% to $3.43 billion compared to sales of $3.18 billion for Q2 2016. The Company's comparable store sales grew 4%, driven by increases in both traffic and the size of the average basket. Ross Stores' sales exceeded analysts' expectations of $3.37 billion.

Ross Stores' cost of goods sold improved 25 basis points for Q2 2017 driven by a better-than-expected 35 basis point increase in merchandise margin, 20 basis points in lower occupancy costs, and distribution expenses that were lower by 10 basis points. These gains were partially offset by a 25 basis point increase in freight costs, along with 15 basis points of higher buying costs. The Company's selling, general, and administrative (SG&A) expenses during the reported period were lower by 25 basis points. This improvement includes a non-recurring benefit of approximately 20 basis points from legal-related costs.

For Q2 2017, Ross Stores' operating margin of 14.9% outperformed its own projections, mainly due to a combination of higher merchandise margin and leverage on its above-plan sales gains.

Ross Stores reported net earnings of $316.54 million compared to net earnings of $281.91 million in Q2 2017. The Company posted earnings per share for the reported quarter of $0.82, up 15% from $0.71 in the year ago corresponding period. The results outperformed Wall Street's expectations of $0.76 per share.

Share Repurchase

During Q2 2017 and H1 2017, Ross Stores, repurchased 3.6 million and 6.9 million shares of common stock, respectively, for an aggregate price of $215 million in the reported quarter and $430 million year-to-date. The Company is expected to buy back a total of $875 million in common stock during fiscal 2017 under the two-year $1.75 billion authorization approved by Ross Stores' Board of Directors in February 2017.

Store Update

During Q2 2017, Ross Stores opened 21 new Ross and 7 dd's DISCOUNTS locations. For the 2017 fiscal year, the Company is planning for a total of about 70 new Ross and 20 dd's DISCOUNTS locations.

Ross Stores' total consolidated inventories were up 3% on a y-o-y basis, with average in-store inventories up slightly. Packaway as a percent of total inventories was 46% in the reported quarter compared to 47% in the prior year's same quarter.

Outlook

For the third quarter ending October 28, 2017, Ross Stores is forecasting same store sales gain of 1% to 2% on top of a robust 7% increase in the prior year. The Company's earnings per share for the period are projected to be $0.64 to $0.67, up from $0.62 in Q3 2016.

For the fourth quarter ending February 03, 2018, Ross Stores is projecting same store sales to grow 1% to 2% versus a strong 4% increase last year, with earnings per share expected to be $0.88 to $.92, up from $0.77 in Q4 2016.

Ross Stores' fiscal 2017 earnings per share for the 53 weeks ending February 03, 2018, are now planned to increase 12% to 14% to $3.16 to $3.23, on top of a 13% gain in FY16.

Stock Performance

On Wednesday, September 06, 2017, the stock closed the trading session at $59.15, marginally up 0.27% from its previous closing price of $58.99. A total volume of 2.92 million shares have exchanged hands. Ross Stores' stock price advanced 6.77% in the last one month. The stock is trading at a PE ratio of 19.50 and has a dividend yield of 1.08%. The stock currently has a market cap of $23.01 billion.

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SOURCE: Pro-Trader Daily