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Ross Stores' (ROST) Q2 Earnings Coming Up: Factors to Note
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Ross Stores, Inc. (ROST - Free Report) is likely to post year-over-year bottom-line growth when it reports second-quarter fiscal 2024 earnings on Aug 22, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, up from $1.32 in the year-earlier period. The consensus mark has remained unchanged in the past 30 days.
The consensus estimate for quarterly revenues is pegged at $5.3 billion, indicating a rise of 6.3% from the year-ago quarter’s figure.
ROST has a trailing four-quarter earnings surprise of 10.6%, on average. In the last reported quarter, the company posted an earnings surprise of 9%.
Factors to Consider
Ross Stores’ quarterly performance is expected to have benefited from broad-based growth in its merchandise categories, driven by positive customer response across both banners. Gains at the core business, buoyed by consumers' continued focus on value and the company’s ability to deliver value bargains to customers, are likely to have bode well. The company has been benefiting from robust customer demand and the easing of supply-chain headwinds in the retail industry.
Ross Stores has been consistent with the execution of its store expansion plans, which is likely to have aided the top line. Its store expansion efforts have been focused on continually increasing penetration in existing and new markets. Gains from new stores are expected to be reflected in the quarterly results.
Additionally, the company’s margins are likely to have gained from higher merchandise margins, and lower distribution expenses, domestic freight and occupancy expenses during the quarter under review. This might have boosted the bottom-line performance.
On its last quarter’s earnings call, Ross Stores had projected comparable-store sales (comps) to rise 2-3%, with total sales growth in the band of 5-7% for the second quarter. It had expected an operating margin of 11.5-11.8%. The company had envisioned earnings per share to be in the range of $1.43-$1.49, up from $1.32 in the second quarter of fiscal 2023.
Our model expects year-over-year sales growth of 6% and comps rise of 2.5% for the fiscal second quarter. We estimate operating margin to expand 50 basis points to 11.8%. On a dollar basis, operating profit is anticipated to rise 11.1% year over year.
However, the company has been cautious about the current macroeconomic and geopolitical uncertainties as well as persistent inflation, which have been affecting consumer spending on housing, food and gasoline. It has been witnessing rising SG&A expenses for a while now. Management had earlier predicted SG&A expenses to rise 5.9% year over year with a flat SG&A rate for the second quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Ross Stores this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is likely to register growth in the bottom and top lines when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for ANF’s quarterly earnings has moved up 2.4% to $2.13 per share in the past 30 days. The consensus estimate indicates 93.6% growth from the year-ago quarter’s number.
The Zacks Consensus Estimate for Abercrombie’s quarterly revenues is pegged at $1.1 billion, which indicates growth of 16.4% from the figure reported in the prior-year quarter.
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +3.62% and a Zacks Rank of 3. The company is likely to register growth in the bottom and top lines when it reports second-quarter fiscal 2025 results. The consensus mark for TJX’s quarterly revenues is pegged at $13.3 billion, which indicates a 4.5% rise from the figure reported in the prior-year quarter.
The consensus mark for TJX’s quarterly earnings has moved up a penny in the past seven days to 92 cents per share. The consensus estimate indicates growth of 8.2% from the year-ago quarter’s actuals.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 3. LULU is likely to register bottom and top-line growth when it reports fiscal second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.43 billion, which indicates 10.2% growth from the prior-year quarter.
The consensus estimate for earnings is pegged at $2.96 per share, which implies a 10.5% increase from the year-ago quarter's reported actuals.
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Ross Stores' (ROST) Q2 Earnings Coming Up: Factors to Note
Ross Stores, Inc. (ROST - Free Report) is likely to post year-over-year bottom-line growth when it reports second-quarter fiscal 2024 earnings on Aug 22, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, up from $1.32 in the year-earlier period. The consensus mark has remained unchanged in the past 30 days.
The consensus estimate for quarterly revenues is pegged at $5.3 billion, indicating a rise of 6.3% from the year-ago quarter’s figure.
ROST has a trailing four-quarter earnings surprise of 10.6%, on average. In the last reported quarter, the company posted an earnings surprise of 9%.
Factors to Consider
Ross Stores’ quarterly performance is expected to have benefited from broad-based growth in its merchandise categories, driven by positive customer response across both banners. Gains at the core business, buoyed by consumers' continued focus on value and the company’s ability to deliver value bargains to customers, are likely to have bode well. The company has been benefiting from robust customer demand and the easing of supply-chain headwinds in the retail industry.
Ross Stores has been consistent with the execution of its store expansion plans, which is likely to have aided the top line. Its store expansion efforts have been focused on continually increasing penetration in existing and new markets. Gains from new stores are expected to be reflected in the quarterly results.
Additionally, the company’s margins are likely to have gained from higher merchandise margins, and lower distribution expenses, domestic freight and occupancy expenses during the quarter under review. This might have boosted the bottom-line performance.
On its last quarter’s earnings call, Ross Stores had projected comparable-store sales (comps) to rise 2-3%, with total sales growth in the band of 5-7% for the second quarter. It had expected an operating margin of 11.5-11.8%. The company had envisioned earnings per share to be in the range of $1.43-$1.49, up from $1.32 in the second quarter of fiscal 2023.
Our model expects year-over-year sales growth of 6% and comps rise of 2.5% for the fiscal second quarter. We estimate operating margin to expand 50 basis points to 11.8%. On a dollar basis, operating profit is anticipated to rise 11.1% year over year.
However, the company has been cautious about the current macroeconomic and geopolitical uncertainties as well as persistent inflation, which have been affecting consumer spending on housing, food and gasoline. It has been witnessing rising SG&A expenses for a while now. Management had earlier predicted SG&A expenses to rise 5.9% year over year with a flat SG&A rate for the second quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Ross Stores this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Ross Stores, Inc. Price and EPS Surprise
Ross Stores, Inc. price-eps-surprise | Ross Stores, Inc. Quote
Ross Stores currently has an Earnings ESP of +1.81% and a Zacks Rank of 3.
More Stocks With Favorable Combination
Here are three more companies, which according to our model, have the right combination of elements to post an earnings beat this reporting cycle:
Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +5.40% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register growth in the bottom and top lines when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for ANF’s quarterly earnings has moved up 2.4% to $2.13 per share in the past 30 days. The consensus estimate indicates 93.6% growth from the year-ago quarter’s number.
The Zacks Consensus Estimate for Abercrombie’s quarterly revenues is pegged at $1.1 billion, which indicates growth of 16.4% from the figure reported in the prior-year quarter.
The TJX Companies (TJX - Free Report) currently has an Earnings ESP of +3.62% and a Zacks Rank of 3. The company is likely to register growth in the bottom and top lines when it reports second-quarter fiscal 2025 results. The consensus mark for TJX’s quarterly revenues is pegged at $13.3 billion, which indicates a 4.5% rise from the figure reported in the prior-year quarter.
The consensus mark for TJX’s quarterly earnings has moved up a penny in the past seven days to 92 cents per share. The consensus estimate indicates growth of 8.2% from the year-ago quarter’s actuals.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank of 3. LULU is likely to register bottom and top-line growth when it reports fiscal second-quarter results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.43 billion, which indicates 10.2% growth from the prior-year quarter.
The consensus estimate for earnings is pegged at $2.96 per share, which implies a 10.5% increase from the year-ago quarter's reported actuals.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.