Department-store chain Ross Stores (ROST) posted a 47% jump in profits last quarter, helped by strong sales and wider profit margins across its line of business.
Ross said it earned $142.9 million, or $1.16 a share, an improvement from $97.4 million, or 76 cents a share, from a year ago. The earnings results were in line with what analysts had expected, while Ross' sales figure of $1.98 billion was above estimates.
Ross, which buys clearance merchandise from other department stores and resells it, said the quarter was helped by a 2.3% lower cost of goods which was offset by a 0.3% overall drop in merchandise prices.
"During one of the most challenging economic and retail environments, we not only generated stronger-than-planned revenues, but did so with record merchandise gross margins that drove double-digit operating profits as a percent of sales," said Ross vice chairman and CEO Michel Balmuth in a statement.
The company said that shoes, dresses and home did well in the quarter and all regions posted same-store sales gains.
Shares of Ross were down 4% to $51.87 on Thursday.
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