(Ross Stores) Shares of Ross Stores, Inc. fell more than 27% in premarket on Friday after reporting earnings of $338.45 million or a diluted $0.97 per share in the first quarter of 2022. The earnings were lower than $476.5 million or a diluted $1.34 per share in the prior year.
The company’s sales came at $4.33 billion in the first quarter, which was a decline from $4.52 billion in the prior year. Same-store sales fell by 7% after a robust gain of 13% in the prior year.
The operating margin was 10.8%, which was a decline from 14.2% in the prior year, reflecting higher freight and wage costs.
Ross CEO Barbara Rentler attributed the weaker earnings to a challenging external environment, including the Ukrainian conflict. The CEO also attributed the earnings to the loss of the Covid-19 linked pent-up demand amid a tighter economy.
Ross expects the company’s same-store sales to fall by 4%-6% in the second quarter, compared to a gain of 15% in the prior year. EPS is expected to be $0.99-$1.07, compared to $1.39 in the prior year.
For FY22, the company forecasts a 2%-4% decline in comparable-store sales, compared to an increase of 13% in FY21. EPS is expected at between $4.34 and $4.58, a decline from $4.87 last year.
ROST: NASDAQ is down -27.35% on premarket.
