Ross Stores GAAP EPS of $1.56 beats by $0.02, revenue of $5.53B misses by $10M
- Ross Stores reported a second-quarter GAAP EPS of $1.56, which surpassed expectations, while revenue was $5.53 billion, a 4.5% increase year-over-year but falling short of forecasts by $10 million.
- CEO Jim Conroy projected comparable store sales growth of 2% to 3% for the third and fourth quarters, with anticipated Q3 EPS between $1.31 and $1.37 and Q4 EPS ranging from $1.74 to $1.81.
- The company adjusted its full-year EPS guidance for fiscal year ending January 31, 2026, to a range of $6.08 to $6.21, down from last year's $6.32, citing impacts from trade policies and costs related to tariffs.
- Following the earnings report, Ross Stores' shares increased by 3.63% in after-hours trading, indicating a positive market reaction.
Recommendation Rating: Positive Outlook for Ross Stores
Ross Stores (NASDAQ: ROST) has released its second-quarter financial results, reporting a GAAP earnings per share (EPS) of $1.56, which exceeds projections by $0.02. The company generated revenue of $5.53 billion, reflecting a year-over-year increase of 4.5%, although this figure fell short of expectations by $10 million.
CEO Jim Conroy outlined expectations for the upcoming third and fourth quarters, aiming for comparable store sales growth of 2% to 3%. He noted that if the second half of 2025 aligns with these projections, the earnings per share for Q3 is anticipated to be between $1.31 and $1.37, a decline from last year's figure of $1.48. For Q4, expected EPS ranges from $1.74 to $1.81, slightly up from $1.79 in 2024. Conroy indicated that these forecasts account for an estimated cost increase of $0.07 to $0.08 per share in Q3, and $0.04 to $0.06 per share in Q4, related to announced tariffs.
Moreover, Conroy adjusted the full-year guidance, stating that based on first-half results and second-half expectations, the earnings per share for the fiscal year ending January 31, 2026, will likely fall between $6.08 and $6.21 compared to $6.32 from the previous year. He also projected an impact of approximately $0.22 to $0.25 per share due to recently announced trade policies. It is essential to note that last year's fourth quarter results benefitted from a one-time gain of about $0.14 per share linked to the sale of a packaway facility.
In after-hours trading, Ross Stores' shares rose by 3.63%, reflecting a positive market reception to the earnings report.