Ross Stores third-quarter results misses expectations
Same-store sales in the quarter slipped 3 percent on a year-over-year basis

Ross Stores Inc. (ROST) reported its third-quarter earnings and revenue below consensus forecast amid higher expenses related to safety protocols due to the pandemic. 

The Dublin, California-based discount retail chain said that it earned $131.2 million, or 37 cents per share for the quarter ended October 31, significantly lower than $1.03 per share in the same period last year, and below the consensus forecast of 59 cents per share. 

Revenue also slipped to $3.75 billion in the quarter, versus $3.85 billion in the year-ago quarter. On the other hand, analysts on average had a sales forecast of $3.42 billion.

Speaking on the quarterly performance, CEO Barbara Rentler said “sales trends accelerated during the third quarter following a slower start in August, driven by an improvement in our merchandise assortments, a later back-to-school season, stronger performance in our larger markets, and our return to more normal store hours. As we enter the fourth quarter, our month-to-date comparable store sales in November are down mid-single-digits. In addition, there remains a high level of uncertainty related to the worsening health crisis and we are concerned with how the upsurge of this pandemic might impact consumer demand during what we expect to be a highly competitive holiday shopping season.”

Same-store sales in the quarter slipped 3 percent on a year-over-year basis, while overall consolidated inventories decreased 25 percent. 

The company said that it opened 9 dd's Discounts and 30 Ross stores during the quarter, as a part of its expansion plan for the current fiscal year. 

Ross Stores (NASDAQ: ROST) shares are trading nearly flat in the mid-day trading Friday. Overall, the stock price remained almost unchanged in 2020. ROST share price has decreased by nearly 5 percent on a year-to-date basis. At the current trading price, the company’s total market value stands at approx. $39.403 billion. 


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-20 13:37

avatar
About the Author
Staff or Guest writer for The Dog of Wall Street.

Analyst Ratings
Target Price $122.09
# of Analysts 23
Last updated 2020-11-20


Burlington Stores hints at weak start to the fourth quarter, shares down
Same-store sales declined 11 percent in the quarter, less than a drop of 16.3 percent projected by analysts.
By Staff | 16 hours ago

Pandemic drives online revenue of Best Buy Co. to new highs in the third quarter
Comparable online sales in the U.S. skyrocketed more than 173 percent on a year-over-year basis.
By Staff | 17 hours ago
BBY

Dick's Sporting Goods crushes analysts’ expectations for third-quarter profit
On an adjusted basis, profit rose to $2.01, easily beating analysts’ average estimate of $1.08 per share.
By Staff | 18 hours ago
DKS

Abercrombie & Fitch shares turn red despite beating consensus expectation for Q3
On an adjusted basis, profit rose to 76 cents per share, while analysts on average were expecting the company to report a loss of 4 cents per share.
By Staff | 19 hours ago
ANF

Dollar Tree shares hit 52-week high on strong quarterly performance
Same-store sales jumped by 5.1 percent on a year-over-year basis, beating the analysts’ average forecast of 4.7 percent growth.
By Staff | 20 hours ago

Snap Inc. shares rally on the roll-out of a new feature
Snap is initially launching Spotlight in 11 countries including the United States and Canada, with a plan to add more in the coming time.
By Staff | 1 day ago