Ross Stores jumps after raising full-year profit guidance

Aug 21 (Reuters) - Ross Stores' ‌shares surged nearly ​9% ​in premarket trading on Friday, after the value retailer raised annual guidance and projected quarterly sales growth above analyst ‌expectations, signalling bargain-hunting demand despite a shaky economic backdrop.

Shares were ⁠last up 8.6% at $248.77 after falling over 3% in the last two sessions.

Here ‌are some details:

• The company ‌raised its annual earnings per share forecast to the range of $8.61 to $8.77, compared with its previous outlook of $7.50 to $7.74.

• It expects comparable ​store sales to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter, compared with analysts' ⁠expectations of a 3.1% and 2.6% rise, respectively.

• The company had earlier forecast annual same-store ​sales to rise between 6% and 7%.

• It reported second-quarter revenue of $6.26 billion, a rise of about 13% from ​a year earlier and beating analyst estimates ‌of $6.18 billion, according to data compiled by LSEG.

• In contrast, earlier this week, rival TJX Companies reported a ⁠slowdown at its TJ Maxx and Marshalls discount apparel chains in the second quarter.

• Ross Stores reported an estimate-beating second-quarter EPS of $2.06, which includes an approximate $0.60 ⁠per share benefit from tariff refunds.

• "Ross deliberately avoided being the first to raise ​prices and pass on tariff costs, even intentionally absorbing margin burdens last year. We view this as a savvy move that cemented its low-price leadership and resonated ‌with its customer base," Morningstar analyst Brett Husslein said in a note.

• At least four brokerages, including ‌J.P.Morgan and Barclays, raised their price targets on the stock after results.

• ⁠As of last close, Ross ‌Stores shares climbed more ​than 27% year-to-date, compared to a 11.6% jump in the S&P 500

(Reporting by Shashwat Chauhan in Bengaluru; Editing by ‌Harikrishnan Nair)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wall Street sees Muse as Meta’s next big catalyst after Connect event
• Bernstein SocGen Group Reiterates Outperform Rating on On Holding AG (ONON)
• BlackBerry shares gain premarket as Q2 results, guidance beat estimates