Ross Stores, the second-largest off-price retailer in the U.S., reported a better-than-expected profit in the third quarter but the company remained cautious on outlook as a resurgence in COVID-19 cases hammered sales in November.
The U.S. home fashion chain reported earnings of $0.37 per share versus $1.03 per share seen in the same period last year, also, beating the market expectations of $61 per share. Net income was $131 million, compared to $371 million in the prior-year period. Third-quarter 2020 sales declined 2% to $3.8 billion, with comparable-store sales down 3%, the company said.
“3Q saw meaningful sequential top-line improvement as the quarter progressed, with comps holding in solidly at (MSD%) in the QTD. We also note strong merch margin expansion, driven by favorable buying, supporting our expectation for off-pricers to benefit from improved costing over the near term. While we are impressed with the execution, we