Ross Stores posts drop in Q2 sales and earnings

For the 13 weeks ended August 1, 2020, Ross Stores Inc. reported earnings per share of 6 cents on net income of 22 million dollars compared to 413 million dollars or 1.14 dollars last year. Total sales for the period were 2.7 billion dollars down from 4 billion dollars in the second quarter of 2019, while comparable store sales were down 12 percent for reopened stores. Ross Stores said in a statement that both sales and earnings for the second quarter and first half periods reflect the Covid-19 related closures of all Ross Dress for Less and Dd’s Discounts locations that began on March 20th and continued through a portion of the second quarter.

Commenting on the trading results, Barbara Rentler, the company’s Chief Executive Officer, said: “During the initial re-openings, sales were ahead of our conservative plans as we benefitted from pent-up demand and aggressive markdowns to clear aged inventory. In the weeks thereafter, trends were negatively impacted from depleted store inventory levels while we were ramping up our buying and distribution capabilities.”

Ross Stores posts H1 loss, sales drop 42 percent

For the six months, the company reported a per share loss of 81 cents versus earnings per share of 2.29 dollars for the same period last year, while the net loss for the first half was 284 million dollars compared to net income of 834 million dollars in the prior year. Sales for the period declined 42 percent to 4.5 billion dollars.

“Our operating margin for the period reflects the deleveraging effect from lower sales as our stores were only open on average for 75 percent of the quarter, and on the comparable store sales decline. Looking ahead, as we move into the third quarter, trends have not materially changed with comparable store sales for the first two and a half weeks trending down mid-teens versus last year. Due to the limited visibility we have on these risks, we are not providing sales or earnings guidance at this time,” added Rentler.

Picture:Facebook/Ross Dress for Less