Ross Stores beats quarterly estimates on steady demand for discounted products
May 23 (Reuters) -Ross Stores ROST.O on Thursday posted first-quarter results above Wall Street estimates and raised its annual profit forecast, as shoppers pivot to off-price retailers prompted by sticky inflation that have squeezed their budgets.
The California-based company's shares jumped nearly 7% to $141 in extended trading, after the company also posted an increase of 205 basis points in its quarterly operating margin.
Over the last year, Ross's sales have recovered amid moderating inflation and a strong response to its value offerings on branded and designer apparel and footwear among its core lower-income cohort.
Still, the company cautioned on pressures in discretionary spending and said it would continue to manage inventory and expenses tightly in order to maximize sales and earnings growth over the balance of the year.
"Ongoing uncertainty in today's macroeconomic and geopolitical environments, including prolonged inflation, continue to squeeze our low-to-moderate income customers' purchasing power," said Ross CEO Barbara Rentler.
Ross's results echo that of its off-price peer TJX Cos TJX.N which, a day earlier, posted better-than-expected first-quarter results and raised annual profit forecast helped by easing costs and strong demand.
There were concerns around the company's lower income, more price-sensitive shoppers, Telsey Advisory Group analyst Dana Telsey wrote in a note on May 17.
The company logged sales of $4.86 billion for the quarter ended May 4,above analysts' average estimate of $4.83 billion, according to LSEG data.
It earned $1.46 per share compared to expectations of $1.35.
It maintained fiscal 2024 comparable store sales forecast at 2% to 3% rise and now expects profit per share in the range of $5.79 to $5.98, from prior range of $5.64 to $5.89.
Reporting by Savyata Mishra in Bengaluru; Editing by Shailesh Kuber
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
