The stock price of Ross, which has 1,483 stores across the U.S. and Guam, fell 2.07% to $105.18 after the chain released second-quarter earnings.
Ross executives said looming plans by the Trump administration to slap 10% tariffs on apparel and footwear made in China have forced the chain to update its earnings guidance for the remainder of the year.
Even so, Ross continues to expect a same-store sales increase of 1% to 2% for the third and fourth quarters, said CEO Barbara Rentler.
"We delivered respectable gains in both sales and earnings for the second quarter," Rentler said in a press statement.
Ross reported quarterly earnings of $1.14 a share, beating the $1.12 a share estimate of analysts surveyed by Zacks Investment Research. The results represented an earnings surprise of 1.79%, with the company having topped analyst-EPS estimates for the last four quarters, Zacks said.
Ross reported revenue of $3.98 billion for its second quarter, which ended in July, beating the estimate of analysts polled by Zacks by 0.23% and posting a gain over the $3.74 billion the discount chain generated during the same period in 2018.
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