DUBLIN, CA – Ross Stores, Inc. (NASDAQ:) saw its shares rise 5% in after-hours trading on Thursday after the off-price retailer reported better-than-expected second-quarter results and raised its full-year guidance.
The company posted earnings per share of $1.59 for the quarter ended August 3, beating analysts’ expectations of $1.50. Revenue rose 7% year over year to $5.3 billion, also above expectations of $5.24 billion. Comparable store sales increased by 4% compared to the same period last year.
“Second quarter revenue and profit exceeded our expectations as our stronger offering resonated with our customers,” CEO Barbara Rentler said in a statement.
Looking ahead, Ross Stores gave an optimistic forecast for the full fiscal year 2025, predicting earnings per share between $6.00 and $6.13. This outlook exceeded analyst consensus expectations of $6.01 per share.
The company cited additional efficiencies expected in the second half of 2024 as a factor in its improved expectations. However, management maintained a cautious stance on sales forecasts, noting continued pressure on discretionary spending among the low-to-moderate income customer base.
For the third and fourth quarters, Ross expects comparable sales growth of 2% to 3%, building on strong gains of 5% and 7%, respectively, in previous years.
“Delivering the great values our off-price customers have come to expect from us is more important than ever, especially given the continued pressure they face from the high cost of living,” Rentler added.
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