Ross Stores Stock Pops as Earnings Top Estimates Despite Inflation Slowing Sales | Global News Avenue

Ross Store Stock (Rost) rose on Friday morning as the discount retailer’s earnings beat expectations.

company Reported $488.8 million profit Third quarter revenue of $5.07 billion sales volume Thursday after the bell. Analysts had expected profits of $459.8 million on sales of just over $5.14 billion, according to estimates compiled by Visible Alpha.

CEO ‘disappointed’ by falling sales as inflation continues to hit customers

However, the company’s customer sales fell slightly as CEO Barbara Rentler said still facing “The cost of daily necessities continues to remain high.”

Rentler said: “We are disappointed with our third quarter sales results as business slowed from the solid growth reported in the first half of 2024. While our low- and moderate-income customers continue to face continued high cost pressures on essential goods, discretionary spending, we believe we should be better able to execute on some of our sales plans.”

Ross records 1% Comparable store sales It increased 2.2% compared with the same period last year, which was lower than analysts expected growth. The company said unseasonably warm weather in early fall and the impact of hurricanes in the southern U.S. also had a negative impact on sales in the quarter.

The company said it expected fourth-quarter comparable sales to rise 2% to 3% and raised its full-year forecast. Earnings per share (EPS) The range rose to between $6.10 and $6.17, up from the previous range of $6.00 to $6.13.

Last month, Ross Stores announced the launch of Boot Barn (start up) CEO James Conroy will take over Ross’ top job when Rentler retires on February 2, 2025. Rentler confirmed Remain in an advisory role until March 2027. Boot Barn said chief digital officer John Hazen will take over as interim CEO as Conroy’s permanent replacement is identified.

Ross shares rose 4.7% to $149.63 on Friday morning.