Ross Stores Inc ROST shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected top-line results and revised its outlook for the remainder of the year.
Ross Stores reported second-quarter revenue of $4.58 billion, which was down from $4.8 billion year-over-year. The company's top-line results missed average analyst estimates of $4.63 billion, according to Benzinga Pro.
The company reported second-quarter earnings of $1.11 per share, which was down from $1.39 per share year-over-year.
"We are disappointed with our sales results, which were impacted by the mounting inflationary pressures our customers faced as well as an increasingly promotional retail environment. Earnings came in above our guidance range primarily due to lower incentive costs resulting from the below plan topline performance," said Barbara Rentler, CEO of Ross Stores.
"Given our first half results, as well as the increasingly challenging and unpredictable macro-economic landscape and today's more promotional retail environment, we believe it is prudent to adopt a more conservative outlook for the balance of the year," Rentler added.
Ross Stores expects third-quarter same store sales to decline 7% to 9% year-over-year. Third-quarter earnings are expected to be between 72 cents and 83 cents per share versus $1.09 per share in the prior year's quarter.
Full-year earnings are expected to be between $3.84 and $4.12 per share versus $4.87 per share in the prior year.
ROST Price Action: Ross Stores has a 52-week high of $115.22 and a 52-week low of $69.24.
The stock was down 1.09% in after hours at $91 at press time.
Photo: Phillip Pessar from Flickr.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.