Ross Stores lifts annual profit forecast on strong demand, easing freight costs
Reuters
Ross Stores
Sticky inflation has led consumers to cut spending on higher-priced goods, boosting sales at retailers such as Ross Stores and Burlington
The company’s first-quarter merchandise margin rose 120 basis points as ocean freight costs eased. TJX Cos Inc and Target
Ross Stores shares fell marginally in extended trading as it forecast second-quarter profit below estimates, hit by higher incentive compensations and wages.
The company also reiterated that it expects annual comparable sales to be relatively flat, with CEO Barbara
Ross Stores is taking a conservative approach in forecast given a cautious consumer sentiment especially among the lower income customers, Jessica Ramirez
The company now expects 2023 profit per share of $4.77 to $4.99, compared with its earlier forecast of $4.65 to $4.95.
It posted first-quarter profit per share of $1.09, topping analysts’ average estimate of $1.06 per share, according to IBES data from Refinitiv.
Same-store sales in the first quarter rose 1%, compared with estimates of a 0.4% rise.
The company sees second-quarter earnings per share between $1.07 and $1.14, compared with estimates of $1.25.
