Ross Stores Raises Fiscal-Year Outlook

Positive Sales and Earnings Drive Optimism

Ross Stores, the off-price retailer specializing in apparel and home accessories, has raised its fiscal-year sales and earnings outlook following strong performance in the second quarter. The company now expects positive same-store sales for the year.

Revised Earnings Guidance

Ross is now forecasting earnings of $5.15 to $5.26 per share for the 53-week period ending February 3, 2024. This represents an increase from the previous outlook of $4.77 to $4.99 per share.

Upward Revision in Same-Store Sales Outlook

The company has also raised its same-store sales outlook for the 52-week period ending January 27. The new range is projected to be up 2% to 3%, a significant improvement from the previous forecast of “relatively flat” same-store sales.

Customer Affordability Concerns Persist

Despite recent moderation in inflation, Ross Stores acknowledges the ongoing higher costs faced by their low-to-moderate income customers when it comes to necessities. CEO Barbara Rentler emphasized the importance of cautious planning given these circumstances.

Second Quarter Boosts Confidence

Strong second-quarter results have provided Ross Stores with the confidence to revise its outlook for the remainder of the fiscal year. The company remains optimistic about its future prospects.