Ross Stores Net Jumps 22.8 Percent in 2Q; Balmuth to Relinquish CEO Post in 2014
August 16, 2012,
PLEASANTON, Calif.-Second-quarter net income for Ross Stores climbed 22.8 percent to $182 million, riding on gains in both sales and margins.
Meanwhile, the retailer said Michael Balmuth, vice chairman and CEO of Ross Stores, will leave those positions on June 1, 2014, under the terms of a new employment agreement between Balmuth and the retailer.
Balmuth has been with Ross for 23 years, serving as CEO for the last 16 years. Ferber said, "This succession plan will enable us to continue to benefit from Michael's more than two decades of significant management experience at Ross, while helping to ensure a seamless transition."
Ross' net sales in the second quarter, which ended on July 28, increased 12 percent to $2.3 billion, including a gain in same-store sales of 7 percent. Gross margin rose 77 basis points to 27.8 percent. Selling, general and administrative expenses were up 9.7 percent in dollars but down 32 basis points as a percentage of sales, to 15 percent.
Balmuth said Ross expects third-quarter same-store sales to grow from 3 to 4 percent, and to pick up 1 to 2 percent in the fourth quarter.
Other Articles By Author
Patti Carpenter Talks Color and its Importance in the Home
HFN's DIGITAL EDITION
COVER STORY: Sharpening the Focus on Millennials
Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.
ALSO IN THIS ISSUE:
- Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
- Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.