Ross Stores (ROST) Tops Q4 EPS by 3c, Revenues Beat; Offers Q1 & FY20 EPS Guidance Below Consensus

Ross Stores (NASDAQ: ROST) reported Q4 EPS of $1.28, $0.03 better than the analyst estimate of $1.25. Revenue for the quarter came in at $4.4 billion versus the consensus estimate of $4.36 billion.

Barbara Rentler, Chief Executive Officer, commented, “We delivered strong sales and earnings growth for both the fourth quarter and fiscal year. Our ongoing ability to offer compelling bargains to our customers enabled us to achieve these results despite our own challenging multi-year comparisons and a fiercely competitive holiday season.”

Ms. Rentler continued, “Fourth quarter operating margin of 13.3% was slightly better than expected, driven by higher merchandise margin.”

GUIDANCE:

Ross Stores sees Q1 2020 EPS of $1.16-$1.21, versus the consensus of $1.25.

Ross Stores sees FY2020 EPS of $4.67-$4.88, versus the consensus of $5.01.

• For the 52 weeks ending January 30, 2021, the Company is planning same store sales to grow 1% to 2% and earnings per share of $4.67 to $4.88. We also plan to open about 100 stores this year, consisting of approximately 75 Ross Dress for Less and 25 dd’s DISCOUNTS locations.
• For the first quarter ending May 2, 2020, comparable store sales are forecast to be up 1% to 2% with earnings per share projected to be $1.16 to $1.21 versus $1.15 for the first quarter ended May 4, 2019.

Looking ahead, Ms. Rentler said, “As we enter 2020, we continue to face our own strong long-term sales and earnings results plus ongoing uncertainty in the macro-economic, political, and retail landscapes. Therefore, while we hope to do better, we believe it is prudent to maintain a somewhat cautious outlook when projecting our performance for the coming year.”

Ms. Rentler added, “Our guidance also does not reflect the potential unknown impacts from the evolving coronavirus outbreak. While we are closely monitoring the situation, there remains a high level of uncertainty over supply chain disruptions in China. In addition, it is unclear how a further possible spread of the coronavirus could negatively impact U.S. consumer demand.”

For earnings history and earnings-related data on Ross Stores (ROST) click here.

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