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Ross Stores (ROST -7.4%) slumps after the retailer issues a sales report and guidance a bit too...

Ross Stores (ROST -7.4%) slumps after the retailer issues a sales report and guidance a bit too soft for what investors seemed to be expecting. On a prerecorded sales call, the company says Juniors and Accessories were its best-performing category in Q3 as it boosts its EPS outlook to $0.71 to $0.72 for the period.
Comments (2)
  • Inzaghi009
    , contributor
    Comments (26) | Send Message
     
    Haven't been impressed with their sales selection and presentation..
    1 Nov 2012, 12:10 PM Reply Like
  • BigGuy
    , contributor
    Comments (80) | Send Message
     
    "Comparable store sales for the month grew 4% on top of a 5% increase in the prior year." Analysts pictured that sales increase would be 4.5%, not 4%. Although sales and earnings in every other way exceeded expectations, because comparable store sales grew only 4% for the month instead of 4.5% for the month, Ross Stores has dropped nearly $5 in value intraday and the market capitalization has declined nearly $1 billion -- $1,000,000,000.

     

    Assuming that comparable store sales in dollars for the month were $650 million (I do not have access to the numbers, I think that's a reasonable guess), that means the firm's value has been reduced by $1000 million because same store sales were down by less than $3 million.

     

    That can be 1 rainy Saturday in half the country, 2 cloudy weekends, or one new store opening delayed for one or two days. I think it is very unfair of the marketplace to penalize Ross Stores investors, employees, and management for a few days of lousy weather in a few areas of the country.

     

    Have any analysts changed their opinion about Ross Stores because comparable store sales did not rise as high as they pictured?
    1 Nov 2012, 02:05 PM Reply Like
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