Ross’ Q2 same-store sales falter thanks to inflation, retailer says

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Shares of Ross Stores Inc. ROST, -0.88% fell about 1% in the extended session Thursday after the retailer met Wall Street sales estimates for its second quarter but same-store sales faltered more than company guidance. Ross said it earned $385 million, or $1.11 a share, in the quarter, compared with $494 million, or $1.39 a share, in the year-ago period. Sales fell to $4.6 billion from $4.8 billion. Same-store sales were down 7%. Analysts polled by FactSet expected earnings of $1 a share on sales of $4.6 billion. The analysts surveyed expected same-store sales down 5.9%. Sales were “impacted by the mounting inflationary pressures our customers faced as well as an increasingly promotional retail environment,” Chief Executive Barbara Rentler said in a statement. Second-quarter operating margins came in at 11.3%, down from 14.1% in the prior year period, reflecting the same-store sales decline, higher markdowns given the sales underperformance, and “ongoing headwinds” from higher freight costs, Ross said. Shares of Ross ended the regular trading day 0.9%.

This article was originally published by Marketwatch.com. Read the original article here.

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