The retailer reported first-quarter earnings after the closing bell on Thursday. Earnings per share came in at $1.37 per share, compared to $1.15 during the same quarter last year, and ahead of the $1.28 analysts expected, according to Thomson Reuters.
As for the top line, revenue rose 10% to $2.94 billion, ahead of forecasts of $2.89 billion. During the quarter, the retailer also repurchased 1.7 million shares totaling $176 million. But shares slumped as the company reported disappointing guidance. Ross Stores expects second-quarter earnings to range from $1.19 to $1.24, falling short of the $1.26 Wall Street expected.
The company said comparable store sales should increase 2% to 3% for tje second quarter, and CEO Barbara Rentler said the company was "pleased with our better-than-expected sales and earnings in the first quarter. Our results continue to benefit from value-focused customers responding favorably to our fresh and exciting assortments of name brand bargains."
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.