Out-of-price retailer Ross Stores (ROST) reported its results for the first quarter of fiscal year 2019 after financial markets closed on May 23. by Refinitiv. Same store sales of the company grew 2.0%. Sales of Ross Stores in the first quarter were negatively affected by the weakness in the women's clothing category.
Ross Stores' first quarter EPS grew 3.6% to $ 1.15 and included a benefit of $ 0.02 associated with the favorable timing of expenses. The company expects this benefit to be reversed for the remainder of the 2019 fiscal year. Analysts expected EPS of $ 1.12. Ross Stores sales growth in the fiscal first quarter again reflected the strength of retailers that are out of price compared to large department stores such as Kohl & # 39; s (KSS) and Nordstrom (JWN), which reported a decrease in your first quarter on the top line. Despite having exceeded first quarter expectations, Ross Stores shares fell 1.2% at 2:56 pm today, as the company's EPS guidance for the second quarter did not meet the expectations of the companies. analysts
Ross Stores expects its EPS for the second quarter of fiscal year 2019 to be in the range of $ 1.06 to $ 1.11 compared to $ 1.04 in the second quarter of fiscal year 2018. Analysts expected EPS of $ 1.14 for the second quarter. The company expects its sales in the same quarter in the second quarter to be in the range of 1% to 2%.
Ross Stores now expects its EPS for fiscal year 2019 to be in the range of $ 4.38 to $ 4.52 compared to the previous perspective range of $ 4.30 to $ 4.50. Analysts expected EPS of $ 4.52 for fiscal year 2019. Higher wages and higher freight costs are expected to put pressure on the company's earnings.
Ross Stores is on track to open about 100 stores in the 2019 fiscal year, including 75 Ross Dress for Less stores and 25 discount stores from D & D.