Ross Q4 profit jumps 23%; to stop reporting monthly sales
Pleasanton, Calif. — Ross Stores Inc. said Thursday its fourth-quarter net income rose 23%, in line with analysts’ projections. The off-price retailer also announced that beginning with the second quarter of fiscal 2013 it will no longer report monthly sales. Instead, quarterly same-store store sales results will be provided with regularly scheduled earnings releases.
“Reporting sales quarterly aligns us with the majority of other retailers who have already adopted this practice, while also increasing the focus on longer-term performance,” said Michael Balmuth, vice chairman and CEO.
Ross earned $236.6 million for the quarter ended Feb. 2, up from $192 million, in the same quarter last year.
Revenue rose 15% to $2.76 billion from $2.4 billion. Same-store sales increased 5%.
For the full year 2012, Ross earned $786.8 million, up from $657.2 million in 2011. Revenue increased to $9.72 billion from $8.61 billion.
The company also said Thursday that beginning with the second quarter of fiscal 2013 it will no longer issue monthly sales reports, but instead just include them with its quarterly earnings reports.
"We are pleased with the record sales and earnings we delivered in the fourth quarter and 2012 fiscal year, especially considering they were achieved on top of strong multi-year gains” Balmuth said. “Results for both periods benefited from our ongoing ability to deliver compelling bargains on a wide assortment of exciting name brand fashions for the family and the home to today’s value-focused consumers."
Macy’s investing $35 million to expand online fulfillment center in Arizona
New York — Macy’s announced that it will expand its online order fulfillment center in Goodyear, Ariz., to accommodate continued sales growth as part of the company’s omni-channel strategy. The company is expected to invest more than $35 million in capital in the project.
The Goodyear facility, with 600,000 sq. ft. of space, was built by Macy’s Inc. and opened in spring 2008. The expansion will add an additional 360,000 sq. ft. of space. Construction is expected to begin this summer so the expanded facility, with a total of 960,000 sq. ft., can be operational in spring 2014.
“Our online fulfillment centers, as well as the 500 Macy’s stores that will be equipped to fulfill orders by the end of 2013, handle customer orders placed online, as well as ship products to customers who shop in stores that may not stock the specific product they need. Through our omni-channel strategy, we can access the total inventory of our company for every customer,” said R.B. Harrison, Macy’s chief omni-channel officer.
Francesca’s Q3 net earnings up 78%; 80 stores on tap for fiscal 2013
Houston — Francesca’s Holdings Corp. reported that net earnings in the fourth quarter rose 78% to $14.9 from $8.4 million in the same quarter last year. The company also said it plans to open 80 stores in fiscal year 2013.
Net sales in the quarter ended February 2, 2013, rose 40.6% to $86.7 million, compared with net sales of $61.7 million during the same period in fiscal 2011. Same-stores sales in the quarter increased 9.2%, driven by increased transactions and strong growth in its clothing and jewelry categories.
"We are well positioned with the teams and capabilities to continue expansion of our boutique base, increase boutique productivity and further develop our direct-to-customer presence,” said CEO Neil Davis. “Looking ahead, we continue our growth trajectory with 80 openings for fiscal 2013, reaching the milestone of over 400 locations by the end of the first quarter."
For the full year, net sales increased 45.2% to $296.4 million. Same-store sales rose 14.9%.
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