Ross Stores Posts Mixed Q1 Earnings, Warns Inflationary Pressures Could Hit Customer Spending

Ross Stores Inc ROST reported first-quarter FY23 sales growth of 3.7% year-on-year to $4.49 billion, almost in-line with the analyst consensus estimate of $4.50 billion.
EPS of $1.09 beat the analyst consensus of $1.06.
Comparable sales increased by 1% Y/Y.
Total costs and operating expenses totaled $4.00 billion, up 3.2% Y/Y.
The operating margin contracted 70 basis points to 10.1%.
The company held $4.4 billion in cash and equivalents as of April 29, 2023.
Net cash provided by operating activities for the three months totaled $413.2 million.
The company repurchased 2.2 million shares for an aggregate price of $234 million in Q1.
Ross Stores' ended the quarter with 2,034 stores compared to 1,951 stores last year.
"There remains a high level of uncertainty in today's macro-economic and geopolitical environments. In addition, prolonged inflationary pressures continue to negatively impact our low-to-moderate income customers' discretionary spend," said CEO Barbara Rentler.
Price Action: ROST shares closed higher by 1.53% at $105.38 on Friday.
Photo via Wikimedia Commons

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