Ross Stores, Inc.NASDAQ
Ross Stores: Company-Specific Headwinds Create Unattainable Forecasts
Shaun Currie, CFA • 12 Comments
Shaun Currie, CFA • 12 Comments
Tue, Nov. 22, 2:17 PM| Tue, Nov. 22, 2:17 PM | 7 Comments
Fri, Nov. 18, 9:10 AM
- Comparable sales rose 7% for Ross Stores (NASDAQ:ROST) in Q3. The solid mark stacks up nicely against peers and coincides with a period for which some retail execs claimed election anxiety weighed down consumer spending.
- Ross didn't say anything about a stressed-out consumer. "We are very pleased with our better-than-expected sales and earnings growth in the third quarter as customers responded favorably to the compelling values we offered throughout our stores," noted CEO Barbara Rentler.
- Operating margin during the quarter rose 55 bps to 12.6% of sales.
- ROST +3.77% premarket to $68.00. Shares are up 22% YTD and are likely to open at a 52-wwek high.
- Previously: Ross Stores beats by $0.06, beats on revenue (Nov. 17)
Thu, Nov. 17, 4:02 PM
Wed, Nov. 16, 6:03 PM
Wed, Nov. 16, 5:35 PM
Tue, Oct. 11, 8:10 AM
- Ross Stores (NASDAQ:ROST) announces the opening of 25 Ross Dress for Less and nine dd's DISCOUNTS stores across 16 different states in September and October.
- The new locations complete the store chain's plan to add approximately 90 locations during the year.
- "We entered two new states in October, with stores in North and South Dakota, and continued to expand dd's DISCOUNTS by opening its first location in Colorado," notes Chief Development Officer Jim Fassio.
- "Looking ahead, we continue to see plenty of opportunity to expand our store base across both new and existing markets, and remain confident that over the long-term, Ross Dress for Less can grow to 2,000 locations and dd's DISCOUNTS can become a chain of 500 stores," he adds.
- Source: Press Release
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Thu, Aug. 18, 4:45 PM
- Operating margin rose 50 bps to 14.4% of sales at Ross Stores (ROST +0.9%) in Q2 with higher merchandise margins in play.
- Merchandise inventory: +3.4% Y/y to $1.5602B.
- Store count: +77 Y/Y to 1,501.
- The company sees full-year EPS of $2.69 to $2.75 vs. $2.71 consensus.
- Previously: Ross Stores beats by $0.04, beats on revenue (Aug. 18)
- ROST +1.81% AH to $64.10.
Thu, Aug. 18, 4:02 PM
Wed, Aug. 17, 5:37 PM
Wed, Aug. 17, 5:35 PM
Mon, Jul. 18, 8:53 AM
- Ross Stores (NASDAQ:ROST) announced it opened 24 Ross Dress for Less and seven dd's DISCOUNTS stores across 15 different states in June and July.
- The new locations are part of the company's 2016 expansion plans to add approximately 70 Ross and 20 dd's DISCOUNTS locations throughout the year.
- Ross has a long term plan to grow to 2,000 Ross Dress for Less and 500 dd's DISCOUNTS locations.
- Source: Press Release
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha
Fri, Jun. 24, 5:36 PM
Thu, May 26, 2:30 PM
- Discounters are rallying in full force after Dollar General (DG +4.6%) and Dollar Tree (DLTR +12.5%) both posted Q1 profit ahead of expectations.
- Steady consumer demand, tight expense control, and an easing of promotional pressure underpinned both reports.
- Retail Dive may have arrived at the heart of the matter, by noting that dollar stores attract different shoppers than the retailers which have been ravaged by Amazon's growth.
- "We are part of what I consider, in this economic environment, the most attractive sector in retail," said Dollar Tree CEO Bob Sasser.
- Investors seem to agree. Ollie's Bargain Outlet Holdings (OLLI +7.6%), Burlington Stores (BURL +7.8%), Big Lots (BIG +2.7%), Five Below (FIVE +2.9%), Ross Stores (ROST +0.9%), TJX Companies (TJX +1%), Tuesday Morning (TUES +1.9%), and Fred's (FRED +6.2%) are all pushing higher.
Fri, May 20, 9:13 AM