Discount retailer Ross Stores swung higher Friday on the back of its late-Thursday earnings beat. Shares led the S&P 500 in premarket trade and broke out after the opening bell.
Ross Stores on Thursday reported a 20.5% increase in earnings to $1.59 per share, topping estimates for $1.50 per share. Sales rose 7.2% to $5.29 billion, which beat FactSet expectations of $5.25 billion.
Comparable sales for the quarter increased 4%, outpacing estimates for 2.9% growth. Ross' operating margin rose by 115 basis points to 12.5%.
CEO Barbara Rentler noted Ross' low-to-moderate income customers are facing pressures on discretionary spending, while the environment for the second half of the year remains uncertain and volatile.
The company expects Q3 earnings to range from $1.35 to $1.41 per share, up from $1.33 per share last year. For the fourth quarter, Ross forecasts earnings from $1.60 to $1.67 per share, compared to $1.82 per share in 2023. The Q3 outlook matched FactSet views, but Q4 was just shy of forecasts for $1.68 per share.
Ross guided 2024 earnings to range from $6 to $6.13 per share, which is in-line with analyst views.
Ross Stores Stock Jumps
ROST stock advanced 1.8% Friday, but still to retook a 153.06 buy point for a flat base. Shares popped more than 4% premarket. The stock initially topped the buy point on Wednesday, then settled just below the entry at Thursday's close.
Ross Stores stock has been consolidating since late February, looping through a series of base patterns. The stock gained 12.2% in 2024.
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