UPDATE 1-Ross Stores outlook below estimates, shares fall

Off-price retailer Ross Stores Inc. (ROST.O: Quote, Profile , Research) said on Wednesday first-quarter net profit rose on strong sales of home products and dresses, but gave a second-quarter outlook that was below analysts' estimates.

The company forecast second-quarter earnings per share in the range of 35 cents to 37 cents. Analysts are expecting Ross to post 38 cents per share in the second quarter, according to Reuters Estimates.

Ross shares were down 1.3 percent to $33.65 in premarket trading, after closing Tuesday at $34.10 on the Nasdaq.

Net income for the latest quarter that ended on April 29 was $67.0 million, or 48 cents per share, in line with analysts' average forecast as compiled by Reuters Estimates, compared with $59.2 million, or 41 cents per share, a year earlier.

Net sales for the quarter rose 9 percent to $1.4 billion. Same-store sales for the quarter were below the company's expectations due to a larger-than-expected impact from an earlier Easter and bad weather in April.

Ross Stores expects same-store sales gains of 1 percent to 2 percent in the second quarter, Chief Executive Michael Balmuth said in a statement.

He expects same-store sales for the second half of the year to grow between 3 percent and 4 percent, partially due to new merchandising opportunities during the fall season.

The company stood by its full-year earnings outlook of $1.85 to $1.95 per share. Analysts expect $1.93 per share, according to Reuters Estimates.
Source : http://today.reuters.com