Ross Stores Q1 sales and earnings decline

Ross Stores, Inc. reported earnings per share of 97 cents on net earnings of 338 million dollars for the first quarter compared to 1.34 dollars per share on net income of 476 million dollars for the 13 weeks ended May 1, 2021.

Sales for the quarter were 4.3 billion dollars versus 4.5 billion dollars in the prior year period, while comparable store sales declined 7 percent.

Commenting on the trading performance, Barbara Rentler, the company’s chief executive officer, said in a statement: “We are disappointed with our lower-than-expected first quarter results. Following a stronger-than-planned start early in the period, sales underperformed over the balance of the quarter.”

Looking ahead, Rentler added: “Given our first quarter results and today’s increasingly uncertain macroeconomic and geopolitical environment, we are now forecasting same store sales for the 13 weeks ending July 30, 2022 to decrease 4 percent to 6 percent, with earnings per share projected to be 99 cents to 1.07 dollars versus 1.39 dollars in last year’s second quarter.”

She further said: “Although we continue to expect sales and profitability to improve as we move through the year, for the 52 weeks ending January 28, 2023, we now forecast comparable store sales to decline 2 percent to 4 percent versus a 13 percent gain in fiscal 2021. Earnings per share for fiscal 2022 are projected to be 4.34 dollars to 4.58 dollars compared to 4.87 dollars in the prior year.”