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."