Ross Stores Q2 earnings up, expects positive trend to continue

Ross Stores earnings per share increased to 1.59 dollars on net income of 527 million dollars for the second quarter. For the six month period, earnings per share rose to 3.05 dollars on net income of 1 billion dollars.

Total sales for the quarter increased 7 percent to 5.3 billion dollars with comparable store sales up 4 percent versus last year. Sales for the first half grew to 10.1 billion dollars and comparable store sales increased by 3 percent.

Commenting on the trading update, Barbara Rentler, Ross Stores CEO said in a statement: “Second quarter sales and earnings were above our expectations as our stronger value offerings resonated with our customers. Operating margin increased 115 basis points to 12.5 percent compared to the prior year period.”

“For both the third and fourth quarters, we are planning comparable sales growth of 2 percent to 3 percent, respectively. If the second half of 2024 performs in line with these sales projections, earnings per share for the third quarter are projected to be 1.35 dollars to 1.41 dollars and 1.60 dollars to 1.67 dollars for the fourth quarter,” added Rentler.

Commenting on the full year outlook, Rentler said: “Based on our first half results and second half guidance, earnings per share for the 52 weeks are now planned to be in the range of 6 dollars to 6.13 dollars versus 5.56 dollars last year.”