Ross Stores: More room to grow in home

Q1 beats expectations

Dublin, Calif – Home continues to perform as one of Ross Stores’ strongest categories.

“And we believe that there is further opportunity to grow the business. But for competitive reasons we wouldn't disclose the specific target,” ceo Barbara Rentler told analysts during yesterdays’ Q1 conference call.

Three key takeaways from the event:

No plans for e-comm . Ross customers aren’t agitating for an online shopping option – and with an average unit retail of $10, “the economics really don’t work” for the off-pricer, president and coo Michael O'Sullivan said.

Vendors still on board . Ross execs said they’ve heard discussions in the retail sector about suppliers looking to reduce their business in off-price, but it hasn’t had an impact. “We continue to see plenty of branded bargains in the marketplace. And quite frankly vendors have strategies that have fluctuated over time – and we do business with over 8,000 vendors,” said Rentler.

Plenty of open-to-buy. “There's a lot of availability. It's pretty broad based, and as you know availability is often the result of department stores not making their plan in their forecast,” said Rentler. She noted that the macro-economic environment remains uncertain.

For the first quarter ended April 29, net earnings climbed 10.3% to $321 million, or 82 cents per share. Sales rose 7.0% to $3.3 billion, with comp up 3.0%.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

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