Ross Stores Reports June Sales and Updated Outlook for Second Quarter And Fiscal 2001 EPS

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Ross Stores Reports June Sales and Updated Outlook for Second Quarter And Fiscal 2001 EPS
    NEWARK, Calif., July 12 /PRNewswire/ -- Ross Stores, Inc. (Nasdaq: ROST)
today reported sales of $268 million for the five weeks ended July 7, 2001, a
9% increase above the $247 million in sales for the five weeks ended
July 8, 2000. Comparable store sales for the same period were even with the
prior year compared to a 1% decline for the five weeks ended July 1, 2000.
    For the five months through July 7, 2001, sales were $1.163 billion, a
5% increase above the $1.103 billion in sales for the prior year's comparable
period ended July 8, 2000. Comparable store sales for the five months declined
2% compared to a 4% increase for the five months ended July 1, 2000.
    In commenting, Vice Chairman and Chief Executive Officer Michael Balmuth
said, "We are making progress with our merchandise offerings, with our same
store sales results improving each month this year. The flat comparable store
sales we reported for June, however, were below our expected increase of 2% to
4% vs. a 1% decline in the prior year. Although our sales trend is improving,
we believe it is happening at a slower rate than we anticipated due to the
continued difficult economic environment and broadbased weakness in the
department and specialty apparel store channels, both of which are
contributing to a tougher, more competitive climate."
    Mr. Balmuth continued, "As a result, like many other retailers, we have
adopted a more cautious outlook for sales and earnings over the balance of
2001. We now expect same store sales for the remainder of the year to be in
the following ranges:  (i) flat to up 2% for the month ending August 4, 2001,
vs. our prior forecast of up 3% to 5%; (ii) flat to up 3% for the
third quarter ending November 3, 2001, vs. our prior forecast of up 4% to 5%;
and (iii) down 1% to up 2% for the fourth quarter ending February 2, 2002, vs.
our prior forecast of up 2% to 3%. If sales perform in line with these newly
forecasted ranges, then we estimate that earnings per share for the fiscal
year ending February 2, 2002 will be in the range of $1.65 to $1.75. Based on
these new sales assumptions, earnings per share by quarter now are forecast to
be in the following ranges for the balance of the year:

    -- $.39 to $.40 for the second quarter ending August 4, 2001, vs. $.43 for
        the second quarter ended July 29, 2000.
    -- $.35 to $.39 for the third quarter ending November 3, 2001, vs.
        $.36 for the third quarter ended October 28, 2000.
    -- $.48 to $.53 for the fourth quarter ending February 2, 2002, vs.
        $.56 for the fourth quarter ended February 3, 2001."

    Mr. Balmuth concluded, "Today's uncertain economic climate increases the
lack of visibility and the difficulty in forecasting both sales and earnings.
An improvement in current sales trends during the balance of the year would
improve the earnings outlook for the second half of 2001."
    The company will report final results for the 13 weeks ending
August 4, 2001 on Wednesday, August 22, 2001. Additional recorded information
concerning today's press release and the company's future outlook for the
second quarter and fiscal year can be accessed by calling 402-220-5900,
PIN #2363, from 8:30 a.m. eastern time on July 12, 2001 through 8:00 p.m.
eastern time on July 13, 2001. A transcript of these comments also will be
made available on the press release page of the company's web site at
http://www.rossstores.com.
    Forward-Looking Statements:  This press release contains certain
forward-looking statements which are subject to risks and uncertainties that
could cause the company's actual results to differ materially from
management's current expectations. The words "plan," "expect," "believe,"
"anticipate," "forecast," "estimate," "projected" and similar expressions
identify forward-looking statements. The estimated earnings per share for the
second, third and fourth quarters and fiscal 2001 are preliminary and subject
to risk factors and adjustments. Risk factors include obtaining acceptable new
store locations, competitive pressures in the apparel industry, changes in
economic conditions, changes in the level of consumer spending on or
preferences in apparel or home-related merchandise, the availability of
dependable energy resources at reasonable costs, unseasonable weather trends,
and greater than planned operating costs. Other risk factors are detailed in
the company's Form 10-K for fiscal 2000. The factors underlying our forecasts
are dynamic and subject to change. As a result, our forecasts speak only as of
the date they are given and do not necessarily reflect the company's outlook
at any other point in time. The company does not undertake to update or revise
these forward-looking statements.
    Ross Stores, Inc. operates a national chain of off-price retail stores
offering first quality, in-season, branded apparel and apparel-related
merchandise for the entire family at prices that average 20% to 60% less than
department and specialty stores, as well as merchandise for the home at
similar savings. The company had 423 stores in operation at July 7, 2001,
compared to 385 stores at the end of the same period last year.
SOURCE Ross Stores, Inc.
http://www.rossstores.com
Company News On-Call:
http://www.prnewswire.com/comp/764175.html
CONTACT:
John G. Call, Senior Vice President & Chief
Financial Officer, 510-505-4315, or Katie Loughnot, Director,
Investor Relations, 510-505-4509, or katie.loughnot@ros.com, both
of Ross Stores, Inc.