trending Market Intelligence /marketintelligence/en/news-insights/trending/QmsxLD_w2zkEKV3mEWfRQg2 content esgSubNav
In This List

Ross Stores beats Q2 EPS estimates, lowers top of fiscal FY'19 EPS range

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Ross Stores beats Q2 EPS estimates, lowers top of fiscal FY'19 EPS range

Ross Stores Inc.'s second quarter earnings beat analysts' expectations, the retailer reported Aug. 22. Ross said it lowered the top end of its earnings guidance for fiscal 2019, citing the potential impact of new tariffs on Chinese imports.

The retailer now expects EPS for the full year to be between $4.41 and $4.50, compared to its previous forecast of $4.38 and $4.52. For the third quarter, Ross expects EPS between 92 cents and 96 cents. For the fourth quarter, it expects EPS between $1.20 and $1.25.

CEO Barbara Rentler said Ross is cutting its earnings guidance in anticipation of the new Chinese tariffs. The U.S. plans to impose tariffs of 10% on a variety of items imported from China, including apparel and footwear.

Ross said it continues to expect a 1% to 2% growth in same-store sales for the second half of the fiscal year.

Adjusted EPS for the second quarter ended Aug. 3 grew to $1.14 from $1.04 in the year-earlier quarter. This beat the mean consensus estimate for normalized EPS of $1.12, according to data compiled by S&P Global Market Intelligence.

During the second quarter, net earnings rose to $413 million from $389 million in the year-earlier quarter. The retailer's sales grew 6% to $3.98 billion from $3.74 billion in the year-earlier quarter, while comparable sales grew 3%.

For the first half of 2019, Ross' sales were up 6% to $7.78 billion from $7.33 billion in the year-ago period. Comparable sales grew 2% compared to the 4% growth posted in the first half of the prior year. Net earnings for the first six months of fiscal 2019 rose to $834 million from $808 million in the year-ago period. Adjusted EPS for the first half of the fiscal year grew to $2.29 from $2.15 reported in the year-ago period.