Ross Stores, Inc. (NASDAQ:ROST) had a mixed quarterly report as the company beat analysts’ expectations in its earnings and revenue, but posted an underwhelming guidance.
The apparel retailer announced that its adjusted earnings came in at $451 million, or $1.19 per share, topping the year-ago figure of $301 million, or 77 cents per share. Analysts were calling for adjusted earnings of 94 cents per share, according to data compiled by FactSet.
Ross Stores also saw its sales rise by 16% year-over-year from $3.5 billion to $4.1 billion. The figure also came in ahead of the Wall Street consensus estimate that analysts polled by FactSet predicted of $3.96 per share.
The company’s comparable-store sales for the quarter were 5% better year-over-year, ahead of the year-ago gain of 4% during the same period. However, Ross Stores missed the mark in its forecast as the company projects same-store sales growth of 1% to 2% for fiscal 2018, below analysts’ consensus estimate of 3.5%, per FactSet.
Earnings are expected to top the mark as the retailer expects profit in the range of $3.86 to $4.03 per share, while analysts are calling for earnings of $3.29 per share, according to FactSet.
“While we are encouraged by our recent strong sales and earnings results, we again face our own challenging multi-year comparisons as well as a very competitive retail environment. As a result, although we hope to do better, we continue to take a prudent approach to forecasting our business in 2018,” CEO Rentler said in a statement.
ROST stock slipped about 3.1% after the bell Tuesday on the company’s weak outlook.