By Yasin Ebrahim
Investing.com - Ross Stores (NASDAQ:ROST) fell sharply in afterhours Thursday as the retailer slashed its annual profit guidance after reporting first-quarter results that were pressured by an uncertain macro-economic environment that is expected to deteriorate further.
Ross Stores shares lost 20% in after-hours trade following the report.
Ross Stores announced earnings per share of $0.97 on revenue of $4.33B. Analysts polled by Investing.com anticipated EPS of $1.02 on revenue of $4.53B.
The miss on top and bottom lines comes as the company was hurt by an "increasingly uncertain macro-economic and geopolitical environment" that forced it to adopt a "more conservative" outlook for the balance of the year.
For the second quarter, the company forecast same store sales for the 13 weeks ending July 30, 2022 to decrease 4% to 6%, compared with a 15% gain in the prior year period, with earnings per share projected to be $0.99 to $1.07.
For the 52 weeks ending January 28, 2023, the company expects comparable store sales to decline 2% to 4%, down from a prior estimate for comparable store sales to be flat to up 3%.
Earnings per share for fiscal 2022 was projected in a range of $4.34 to $4.58, down from a prior forecast of $4.71 to $5.12.
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