Shares of Ross Stores, Inc. (ROST - Free Report) jumped 10.67% in trading on Friday, closing at $59.02 per share, after reporting better-than-expected second quarter fiscal 2017 results.
Ross reported earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.76. Earnings grew 15.49% year-over-year. The company also reported revenue of $3.431 billion, surpassing our estimate of $3.370 billion and growing 7.88% year-over-year.
The company also stated that comparable store sales rose 4%. Ross Stores expects to earn between $0.64 and $0.67 per share during the third quarter.
This positive earnings report comes in sharp contrast to falling retail stocks resulting from poor earnings and sales this week. Today, Foot Locker (FL - Free Report) fell 28% after missing analyst expectations, dragging other athletic retailers along with it. L Brands , the owner of Victoria’s Secret, also tumbled on Wednesday after reporting disappointing sales and a weak outlook for the third quarter.
Ross owes its success partially to its strategy of being an off-price retailer. The company offers designer and brand name products at deeply discounted rates. This has attracted consumers to its 1,340 U.S. stores, allowing Ross to succeed despite e-commerce retailer threats, like from Amazon.com (AMZN - Free Report) .
TJX Companies Inc (TJX - Free Report) , which owns T.J. Maxx, Marshalls, and the popular HomeGoods, also reported second quarter earnings this week that beat our estimates. The success of both these off-price companies demonstrates that department stores like Macy’s (M - Free Report) and Nordstrom (JWN - Free Report) aren't doing well just because of online competition, but because consumers want quality products at low prices.
ROST remains a Zacks Rank #3 (Hold), with a VGM score of ‘A.’
Want to learn more about retail? Check out our recent podcast on the topic below!
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Shares of Ross Stores, Inc. (ROST - Free Report) jumped 10.67% in trading on Friday, closing at $59.02 per share, after reporting better-than-expected second quarter fiscal 2017 results.
Ross reported earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.76. Earnings grew 15.49% year-over-year. The company also reported revenue of $3.431 billion, surpassing our estimate of $3.370 billion and growing 7.88% year-over-year.
The company also stated that comparable store sales rose 4%. Ross Stores expects to earn between $0.64 and $0.67 per share during the third quarter.
This positive earnings report comes in sharp contrast to falling retail stocks resulting from poor earnings and sales this week. Today, Foot Locker (FL - Free Report) fell 28% after missing analyst expectations, dragging other athletic retailers along with it. L Brands , the owner of Victoria’s Secret, also tumbled on Wednesday after reporting disappointing sales and a weak outlook for the third quarter.
Ross owes its success partially to its strategy of being an off-price retailer. The company offers designer and brand name products at deeply discounted rates. This has attracted consumers to its 1,340 U.S. stores, allowing Ross to succeed despite e-commerce retailer threats, like from Amazon.com (AMZN - Free Report) .
TJX Companies Inc (TJX - Free Report) , which owns T.J. Maxx, Marshalls, and the popular HomeGoods, also reported second quarter earnings this week that beat our estimates. The success of both these off-price companies demonstrates that department stores like Macy’s (M - Free Report) and Nordstrom (JWN - Free Report) aren't doing well just because of online competition, but because consumers want quality products at low prices.
ROST remains a Zacks Rank #3 (Hold), with a VGM score of ‘A.’
Want to learn more about retail? Check out our recent podcast on the topic below!
4 Surprising Tech Stocks to Keep an Eye on
Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off.
See Stocks Now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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