Ross Stores shares jumped after the discount retailer posted earnings that were better than expected and raised guidance, showing yet again that the off-price model can thrive in the current macroeconomic environment.
“Despite the recent moderation in inflation, our low- to moderate-income customer continues to face persistently higher costs on necessities,” said CEO Barbara Rentler. “As such, we believe it is prudent to continue to plan the business cautiously. However, given our improved second-quarter performance, we are raising our second-half sales and earnings outlook.”
The company also gave guidance for its next two quarters, projecting $1.16 to $1.21 in earnings per share for the third quarter and $1.58 to $1.64 in earnings per share for the fourth quarter. Analysts are projecting third- and fourth-quarter earnings per share to clock in at $1.17 and $1.56, respectively.