Ross gets a roastingRoss Stores joins the sorry-looking list of retailers feeling the pinch, reporting Q1 earnings that reflect the times.
- ROST tanked almost 22% on Friday as the discount retailer missed both ends, reporting EPS of $0.97 on revenues that fell 4.2% YoY to $4.3bn. Worse yet, it also trimmed its EPS forecast, while letting it slip that store sales are set to decline 4% for the year against its initial 2% outlook.
- Let us take a wild guess – it blamed inflation. Yup, CEO Barbara Rentler said this and the delayed effects of stimulus payments last year has hurt the company. Despite rising prices strategically, Ross Stores saw its discount shoppers feel the squeeze of inflation enough to rethink even its cheap prices.
- Needless to say, retail is taking a hit rn. Last week Walmart and Target saw their worst days on Wall St. since 1987, falling 20% and 30% respectively. Elsewhere, the S&P entered a bear market zone of $3.8k, closing in the red for the seventh week straight.
Chris Li / Unsplash
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