AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Ross Stores, Inc. (NASDAQ: NASDAQ:ROST) reported first quarter with earnings per share (EPS) of $1.46, surpassing the analyst consensus of $1.35.
The discount retailer also saw its revenue climb to $4.86 billion, a slight beat over the $4.83 billion consensus estimate and an 8% increase from $4.5 billion in the same quarter last year. Comparable store sales experienced a healthy 3% uptick.
Following the announcement, Ross Stores' stock rose by 6.2%, signaling a positive market response to the company's performance and optimistic future guidance.
Chief Executive Officer Barbara Rentler attributed the better-than-expected earnings to lower expenses, noting that the company navigated macroeconomic challenges that have been impacting customer spending.
Looking ahead, Ross Stores anticipates a 2% to 3% rise in comparable store sales for the second quarter, on top of a 5% increase in the prior year. The company projects second-quarter EPS to range between $1.43 and $1.49, an improvement from $1.32 reported in the same period last year. This forecast aligns closely with the consensus estimate of $1.45.
For the full fiscal year 2025, Ross Stores expects EPS to be between $5.79 and $5.98, with the midpoint of $5.885 slightly below the analyst consensus of $5.92.
The company's confidence is further evidenced by its share repurchase program, with $262 million spent on buybacks in the first quarter as part of a larger $2.1 billion authorization. Ross Stores remains on course to repurchase $1.05 billion in common stock during fiscal 2024.
Rentler stressed the importance of offering customers the best value in a challenging economic climate and committed to tight inventory and expense management to fuel sales and earnings growth.
Despite the ongoing uncertainty and inflationary pressures, Ross Stores' guidance reflects an optimistic stance for the remainder of the fiscal year.
In her remarks, Rentler noted, "As a reminder, fiscal 2023 earnings per share included a benefit of approximately $0.20 from the 53rd week."