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Ross Stores Q1 sales edge up

Ross plans to open 100 locations in 2023.
Ross plans to open 100 locations in 2023.

Ross Stores reported better-than-expected first-quarter results but warned that higher prices continue to impact its customers’ discretionary spending. 

The off-price apparel and home goods retailer posted net income of $371.2 million, or $1.09 a share, for the quarter ended April 29, compared to $338.4 million, or $0.98 a share, in the year-ago period. Analysts expected $1.05 a share.

Sales rose to $4.49 billion, up from $4.33 billion a year earlier. Comparable store sales were up 1%.

Ross is planning to open 100 stores this year, including 75 namesake locations (Ross Dress For Less) Ross locations and 25 DD’s Discounts outposts.

“Despite continued inflationary pressures impacting our low-to-moderate income customers, first quarter sales were relatively in line with our expectations,” stated CEO Barbara Rentler. 

Operating margin for the period was 10.1%, down from 10.8% in 2022, primarily reflecting higher incentive compensation versus last year when the company underperformed our expectations, Rentler added.

For the second quarter, the retailer expects  flat comparable store sales and earnings per share between $1.07 and $1.14.  Analysts expected $1.22 a share.

“There remains a high level of uncertainty in today’s macro-economic and geopolitical environments,” Rentler stated. “In addition, prolonged inflationary pressures continue to negatively impact our low-to-moderate income customers’ discretionary spend. As such, we remain focused on delivering the most compelling values possible to maximize our opportunities for growth.”

For the full fiscal year, the company maintained its outlook for flat comparable store sales. But it raised its earnings per-share forecast to between $4.77 and $4.99 up from its prior guidance of between $4.65 and $4.95 a share.  Analysts are looking for $4.94 a share 

During the first quarter of fiscal 2023, Ross repurchased 2.2 million shares of common stock for an aggregate price of $234 million. It remains on track to buy back a total of $950 million in common stock during fiscal 2023. 

Currently, the company operates 1,704 Ross stores in 40 states, the District of Columbia, and Guam. It also operates 330 dd’s Discounts stores in 22 states.


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