By Kimberly Chin

Ross Stores Inc.'s profit decreased in the third quarter on higher costs and expenses as sales fell 2.5% due to the pandemic curbing in-store traffic.

The discount retail chain said net profit was $131.2 million, or 37 cents a share, down from $370.9 million, or $1.03 a share, the year earlier. Analysts polled by FactSet expected earnings of 59 cents a share.

Sales fell to $3.75 billion from $3.85 billion a year earlier. Analysts were looking for $3.42 billion. Same-store sales fell 3%.

"Sales trends accelerated during the third quarter following a slower start in August, driven by an improvement in our merchandise assortments, a later back-to-school season, stronger performance in our larger markets, and our return to more normal store hours," Chief Executive Barbara Rentler said.

Ross Stores incurred a one-time charge of $240 million related to the financing of $775 million in senior notes, the company said.

Total costs and expenses rose 7.5% from a year ago to $3.62 billion.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

11-19-20 1634ET