Ross Stores Stock Jumps On Q1 Earnings Beat: Key Metrics, Stock Repurchase And More

Ross Stores Inc ROST shares are trading higher in Thursday’s after-hours session after the company reported strong first-quarter results.

• Q1 Revenue: $4.858 billion, versus estimates of $4.833 billion

• Q1 EPS: $1.46, versus estimates of $1.34

Operating margin came in at 12.2% in the first quarter, up 205 basis points from last year’s first quarter, primarily driven by lower distribution, incentive and freight costs.

Ross Stores noted that it repurchased 1.9 million shares for an aggregate of $262 million in the first quarter and said it remains on track to repurchase $1.05 billion worth of its common stock in 2024.

“Though we had hoped to do better, first quarter sales were in line with guidance despite macroeconomic headwinds that continued to pressure our customers’ discretionary spending. Earnings results for the period were better-than-expected primarily due to lower expenses relative to our plan,” said Barbara Rentler, CEO of Ross Stores.

Outlook: Ross Stores expects second-quarter comparable sales to increase 2% to 3%. The company sees second-quarter earnings in the range of $1.43 to $1.49 per share versus estimates of $1.45 per share.

Ross Stores also guided for full-year comparable sales growth of 2% to 3% and raised its earnings guidance. The company now expects full-year earnings to be between $5.79 and $5.98 per share versus estimates of $5.92 per share.

ROST Price Action: Ross Stores shares were up 7.36% after hours at $141.57 at the time of publication, according to Benzinga Pro.

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