Ross Stores boosts full-year earnings forecast, stock pops

Ross Stores (ROST) posted better-than-expected first quarter earnings and raised its full-year earnings guidance. For Q1, the discount retailer posted earnings per share of $1.46 compared to a $1.35 estimate. Revenue of $4.86 billion was about in line with Wall Street expectations of $4.82 billion. Ross Stores also raised its full-year earnings forecast to a range of $5.79 to $5.98 per share, up from $5.64 to $5.89. However, in the release, CEO Barbara Rentler says, “Ongoing uncertainty in today’s macroeconomic and geopolitical environments, including prolonged inflation, continue to squeeze our low-to-moderate income customers’ purchasing power."

Yahoo Finance's Julie Hyman and Josh Lipton break down the results.

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This post was written by Stephanie Mikulich.

Video Transcript

Let's check out some more earnings here.

Shares of row stores are higher after that company's numbers beat estimates a buck 46 in earnings per share nine cents.

A head of estimates comparable sales rising 3%.

Although that's a little shy of the 3.4% estimated an operating margin at 12.2% ahead of estimates as well.

Company also giving some forecast for its second quarter um for comparable sales of 2 to 3%.

That's fairly in line with estimates and earnings per share of a dollar 43 to a dollar 49.

That too pretty much in line with estimates here.

It looks like their full year forecasts are as well.

Uh There is one comment that our executive producer helpfully flagged here, Barbara rent the CEO of raw stores saying ongoing uncertainty in today's macroeconomic and geopolitical environments including prolonged inflation continued to squeeze our low to moderate income customers purchasing power and they said it's more important than ever to offer, but the best branded uh values possible.

They said they'll continue to manage inventory and expenses tightly as a result of that.

Yeah, this was another name like work day, by the way, not a lot was expected.

I mean, the stock was in the red years eight heading into the print.

So you had, but you have a nice pop here.

A nice read.

I think for investors into the macro, into the consumer and about the guy in steward and your will often say ju this, this is one where, you know, a typically kind of cautious management team in terms of their forecast.