Ross Stores Earnings Beat in Q2, Warns on Outlook Amid Virus Uncertainty

This post was originally published on this site – Ross Stores (NASDAQ:ROST) reported on Thursday second-quarter results that topped expectations, though the company struck a cautious tone on its outlook, citing significant coronavirus-led uncertainty on consumer demand.

Shares rose 0.85% in late trading.

Ross Stores announced earnings per share of $-0.13 on revenue of $2.68 billion. Analysts polled by anticipated EPS of $-0.28 on revenue of $2.46 billion.

The company’s stores were open on average for 75% of the quarter amid disruptions owing to the pandemic.

“During the initial re-openings, sales were ahead of our conservative plans as we benefited from pent-up demand and aggressive markdowns to clear aged inventory. In the weeks thereafter, trends were negatively impacted from depleted store inventory levels while we were ramping up our buying and distribution capabilities,” said Ross Chief Executive Officer Barbara Rentler.

Looking ahead to the third quarter, the company said, “Trends have not materially changed from the second quarter with comparable store sales for the first two and a half weeks trending down mid-teens versus last year. There remains significant uncertainty on how the pandemic will continue to evolve and affect consumer demand and the economy, and the potential exists for additional government mandated shutdowns if COVID-19 cases remain elevated or further increase. Given these risks, we will continue to plan and manage our business very cautiously. Due to the limited visibility we have on these risks, we are not providing sales or earnings guidance at this time.”

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