Ross Stores Inc. (NYSE:ROSS) found its shares clobbered Friday, on the latest quarterly figures.
The department store chain reported second-quarter FY21 sales growth of 78.9% year-on-year, to $4.80 billion, beating the analyst consensus of $4.45 billion. Sales improved 20.7%, and comparable-store sales rose 15% compared to pre-COVID Q2 FY19.
EPS were $1.39 beat the analyst consensus of $0.93.Total costs and operating expenses totaled $4.14 billion, up 57.8% Y/Y and up 20.8% from Q2 FY19.
Operating margin versus 2019 improved to 14.1% as leverage from the robust sales gains was partially offset by the expected expense pressures from higher freight, wage, and COVID-related costs.
The company held $5.6 billion in cash and equivalents as of July 31, 2021. Net cash provided by operating activities for the six months totaled $1.3 billion.
Ross Stores' quarterly cash dividend of $0.285 per share is payable on September 30, 2021, to stockholders of record as of September 7, 2021.
Ross Stores sees Q3 FY21 of $0.61 - $0.69 versus consensus of $0.93. The chain forecast Q3 same-store sales to be up 5% - 7%.
For FY21, it expects EPS forecast to $4.20 - $4.38 (prior $3.93 - $4.20) versus consensus of $4.35. FY21 Comparable store sales gain of 10% - 11%.
ROSS shares stumbled $6.50, or 5.1%, at $120.20 in to open Friday.
