Shares of Ross Stores Inc. (ROST) fell more than 3% in the extended session Thursday after the retailer reported a surprise first-quarter loss and sales that were below Wall Street expectations. Ross said it lost $306 million, or 87 cents a share, in the quarter, versus earnings of $421 million, or $1.15 a share, in the prior-year period. Sales fell to $1.8 billion from $3.8 billion a year ago. Ross said that since most of its stores were open for less than seven weeks of the 13-week period, it was not reporting same-store sales. Analysts polled by FactSet had expected earnings of 13 cents a share on sales of $2.2 billion in the quarter. "Our first-quarter results reflect the unprecedented impact the COVID-19 pandemic has had on our business," Chief Executive Barbara Rentler said in a statement. The company began reopening some of its stores last week depending on location, and about 700 stores have reopened since. "We have a deep bench of proven and experienced leaders throughout the business as well as a very strong financial foundation with over $3.0 billion in liquidity, which in addition to our cash balances includes a new $500 million revolving credit facility," Rentler said. "All of this makes us confident in our ability to successfully navigate through these challenging times." The company also did not provide full-year or second-quarter guidance due to the "lack of visibility created by COVID-19 and the unknown extent of the impact the virus will have on consumer demand and store productivity." Ross shares ended the regular trading day up 6.6%.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 21, 2020 16:21 ET (20:21 GMT)
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