By Yasin Ebrahim
Investing.com - Ross Stores (NASDAQ:ROST) reported Thursday second-quarter results that beat expectations, but the retailer also flagged supply chain woes and the Delta variant as potential drags on growth ahead.
Ross Stores shares lost 5% in after-hours trade following the report.
Ross Stores announced earnings per share of $1.39 on revenue of $4.81 billion. Analysts polled by Investing.com anticipated EPS of 96 cents on revenue of $4.47 billion.
Comparable store sales were up 14%.
"Looking ahead, there remains much uncertainty regarding the sustainability of the positive external factors that benefited our first half results as well as the potential risks we may face from the spread of COVID variants and worsening industry-wide supply chain congestion," the company said.
As a result, we are forecasting third quarter same store sales to be up 5% to 7% with earnings per share in the range of $0.61 to $0.69. This guidance reflects our expectation for escalating freight and supply chain costs, and ongoing COVID-related operating expenses.”
For the full-year 2021, the company guided EPS in the range of $4.20 to $4.38 on a comparable store sales gain of 10% to 11%. That compared with consensus for EPS of $4.35.
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