Ross Stores withdraws annual guidance due to inflation and trade policy concerns
Ross Dress for Less Store Credits: Ross Stores, Inc. Ross Stores announced first-quarter earnings per share of 1.47 dollars for the first quarter ended May 3, 2025, slightly up from 1.46 dollars in the same period last year, while net income decreased to 479 million dollars from 488 million dollars last year. Sales for the quarter reached 5 billion dollars, with comparable store sales remaining flat year-over-year. Citing heightened macroeconomic and geopolitical uncertainty, particularly prolonged inflation and evolving trade policies, the company has withdrawn its previously provided annual sales and earnings guidance. Commenting on the first quarter results, Jim Conroy, chief executive officer, said, “Despite the slower start to the spring selling season in February, our monthly sales performance improved sharply, month after month, for the balance of the quarter. For the first quarter, sales and earnings performed at the high end of our expectations while operating margin of 12.2 percent was flat year-over-year.” Looking ahead, Conroy added, “Heightened macroeconomic and geopolitical uncertainty persists, most notably prolonged inflation and evolving trade policies. While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. As such, we expect pressure on our profitability if tariffs remain at elevated levels.” For the second quarter ending August 2, 2025, Ross Stores projects comparable store sales to be flat to up 3 percent and earnings per share in the range of 1.40 dollars to 1.55 dollars, which includes an estimated 11 cents to 16 cents per share cost impact from announced tariffs, compared to 1.59 dollars in earnings per share for the prior year's second quarter.
Ross Stores announced first-quarter earnings per share of 1.47 dollars for the first quarter ended May 3, 2025, slightly up from 1.46 dollars in the same period last year, while net income decreased to 479 million dollars from 488 million dollars last year. Sales for the quarter reached 5 billion dollars, with comparable store sales remaining flat year-over-year.
Citing heightened macroeconomic and geopolitical uncertainty, particularly prolonged inflation and evolving trade policies, the company has withdrawn its previously provided annual sales and earnings guidance.
Commenting on the first quarter results, Jim Conroy, chief executive officer, said, “Despite the slower start to the spring selling season in February, our monthly sales performance improved sharply, month after month, for the balance of the quarter. For the first quarter, sales and earnings performed at the high end of our expectations while operating margin of 12.2 percent was flat year-over-year.”
Looking ahead, Conroy added, “Heightened macroeconomic and geopolitical uncertainty persists, most notably prolonged inflation and evolving trade policies. While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. As such, we expect pressure on our profitability if tariffs remain at elevated levels.”
For the second quarter ending August 2, 2025, Ross Stores projects comparable store sales to be flat to up 3 percent and earnings per share in the range of 1.40 dollars to 1.55 dollars, which includes an estimated 11 cents to 16 cents per share cost impact from announced tariffs, compared to 1.59 dollars in earnings per share for the prior year's second quarter.
