Ross Stores, Inc. reported sales for the first quarter of 2023 were $4.5 billion for the 13 weeks ended April 29, 2023, up from $4.3 billion in the prior-year comparable period. Comparable store sales were up 1 percent.
Earnings per share were $1.09 on net earnings of $371 million for the quarter, compared to earnings per share of 97 cents on net income of $338 million for the prior-year period.
Company CEO Barbara Rentler commented, “Despite continued inflationary pressures impacting our low-to-moderate income customers, first quarter sales were relatively in line with our expectations. Operating margin for the period was 10.1 percent, down from 10.8 percent in 2022, primarily reflecting higher incentive compensation versus last year when we underperformed our expectations.”
She continued, “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. As such, we remain focused on delivering the most compelling values possible to maximize our opportunities for growth.”
For the 13 weeks ending July 29, 2023, second quarter comparable store sales are projected to be relatively flat. Earnings per share for the second quarter are forecast to be in the range of $1.07 to $1.14 versus $1.11 for the comparable period last year.
Based on the first quarter results and guidance for the second quarter, comparable store sales for the 52 weeks ending January 27, 2024 are still planned to be relatively flat.
“We now project earnings per share for the 53 weeks ending February 3, 2024 to be $4.77 to $4.99 compared to $4.38 for the 52 weeks ended January 28, 2023,” said Rentler.
The guidance for the full year includes an estimated benefit of approximately 15 cents to earnings per share from the 53rd week thus year.
