Ross Stores Earns $1.15 per Share for Q1

After today’s closing bell, Ross Stores ($ROST) reported Q1 earnings of $1.15 per share which matched the Street’s estimates. These are decent results and they could have been a lot worse. Earlier this week, TJX reported below expectations. For Ross, revenue was up 5.6% last quarter to $2.68 billion which was just shy of consensus. Comparable store sales, which is the key metric for retailers, were up 1% for the quarter.

For Q2, Ross sees earnings of $1.05 to $1.09 per share, and comparable stores sales growth of 1% to 2%. The Street had been expecting $1.08 per share. Bear in mind that Ross had a range of $1.11 to $1.15 per share for Q1, so they tended to be modest with their expectations.

For the entire year, Ross projects earnings of $4.09 to $4.21 per share. That’s an increase of four cents per share to the low end. The consensus on the Street is for $4.21 per share.

CEO Michael Balmuth said, “First quarter earnings per share performed at the high end of our guidance as strict inventory and expense controls offset the impact from unfavorable weather and a more challenging retail environment. Sales trends improved in April with more seasonal Spring weather that coincided with the later Easter shopping period. Operating margin for the quarter was better than forecasted, declining 25 basis points to 14.6%. A 35 basis point increase in cost of goods sold was partially offset by a 10 basis point improvement in selling, general and administrative costs.”

Posted by on May 22nd, 2014 at 8:09 pm


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