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.
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(END) Dow Jones Newswires