Ross Stores Q1 results disappoint
Ross Stores announced on Thursday revenues for the first quarter declined for the three months ending April 30, on the back of a dive in comparable store sales, tumbling earnings for the quarter.
The Dublin, California-based company said sales for the first quarter of 2022 were $4.3 billion, down around 5% from $4.5 billion in the prior year period, adding that its inventory levels also rose nearly 60% for the quarter.
Comparable store sales declined 7% on top of a 13% gain in the first quarter of 2021, the company said.
“We are disappointed with our lower-than-expected first quarter results. Following a stronger-than-planned start early in the period, sales underperformed over the balance of the quarter," said Barbara Rentler, chief executive officer.
Net earnings for the quarter fell to $338.4 million, from $476.5 million in the prior-year quarter.
"We knew fiscal 2022 would be a difficult year to predict, especially the first half when we were facing last year’s record levels of government stimulus and significant customer pent-up demand as Covid restrictions eased. The external environment has also proven extremely challenging as the Russia-Ukraine conflict has exacerbated inflationary pressures on the consumer not seen in 40 years," said Rentler.
Looking ahead, Ross said it sees full year comparable sales falling 2% to 4% for the year, versus previous guidance of unchanged to a gain of as much as 3%. It also trimmed its forecast for earnings per share.
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