Dublin-based company Ross Stores, Inc. (NASDAQ: ROST) has released its earnings report for the 13-week period ending April 29, 2023. The company reported earnings per share of $1.09, with net earnings reaching $371 million. These figures represent an increase compared to the same period last year when earnings per share were $0.97, and net income was $338 million. Sales for the first quarter of 2023 were $4.5 billion, up from $4.3 billion in the previous year, while comparable store sales saw a 1% increase.
Barbara Rentler, CEO of Ross Stores, commented on the results, acknowledging the impact of inflationary pressures on their low-to-moderate income customers. She stated that first-quarter sales were in line with expectations. The company’s operating margin for the period decreased to 10.1% from 10.8% in 2022 due to higher incentive compensation compared to the previous year.
Rentler also provided guidance for the future, stating that comparable store sales for the 13-week period ending July 29, 2023, are expected to remain relatively flat. Earnings per share for the second quarter of 2023 are forecasted to be between $1.07 and $1.14, slightly lower than the $1.11 reported for the same period in 2022.
Rentler highlighted the uncertainty in the macroeconomic and geopolitical environments, as well as ongoing inflationary pressures affecting their customers’ discretionary spending. However, she expressed the company’s commitment to delivering compelling values to maximize growth opportunities. Rentler concluded by projecting relatively flat comparable store sales for the 52 weeks ending January 27, 2024, and estimated earnings per share for the 53 weeks ending February 3, 2024, to be in the range of $4.77 to $4.99, compared to $4.38 for the 52 weeks ended January 28, 2023. This guidance includes an estimated benefit of approximately $0.15 from the additional 53rd week.
Ross Stores, Inc. is a Fortune 500 company and operates Ross Dress for Less, the largest off-price apparel and home fashion chain in the United States, with 1,704 locations across the country. The company also operates dd’s DISCOUNTS stores, offering a moderately-priced assortment of apparel, accessories, footwear, and home fashions. More information can be found on their website at www.rossstores.com.