Shares of Ross Stores (ROST) are up 5% after the off-price retailer reported better-than-expected financial results for this year’s second quarter.
The Dublin, California-based company announced earnings per share (EPS) of $1.59 U.S., which topped Wall Street’s consensus forecast of $1.50 U.S.
Revenue in the quarter totaled $5.30 billion U.S., which also beat estimates that called for $5.25 billion U.S. Sales were up 7% year over year.
Ross Stores said that its same-store sales rose by 4% this quarter from a year ago, which was ahead of the 2.9% estimated among analysts.
Management attributed the strong results to consumers seeking out discounts, as well as cost reductions at its retail outlets.
Off-price retailers have performed well over the past year as cash-strapped consumers search out deals amid the current high inflation environment.
In terms of guidance, Ross Stores said that it expects full-year earnings of $6 U.S. to $6.13 U.S. a share.
That’s up from previous guidance that called for $5.79 U.S. to $5.98 U.S. a share in profit. Analysts had expected the company to report full-year earnings of $6.01 U.S. a share.
Before today (Aug. 23), the stock of Ross Stores had gained 25% over the last 12 months to trade at $152.52 U.S. per share.
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