Ross Stores Plunges 9.43% on Guidance Withdrawal

On May 23, 2025, Ross Stores experienced a significant drop of 9.43% in pre-market trading, reflecting investor concerns and market reactions to recent developments.

Ross Stores, Inc. released its first-quarter results, reporting earnings of $1.47 per share, surpassing the estimated $1.44. Quarterly revenue reached $4.99 billion, exceeding the consensus estimate of $4.97 billion. Despite a slower start to the spring selling season in February, the company's monthly sales performance improved throughout the quarter, leading to strong overall results.

However, the company withdrew its annual sales and earnings guidance due to the unpredictable nature of trade policies and their impact on the economy and consumer behavior. Ross Stores now projects second-quarter GAAP EPS in the range of $1.40 to $1.55, below the analyst estimate of $1.65. The company's decision to focus on conservative management during these uncertain times has raised concerns among investors.

Despite the near-term headwinds from tariffs and weak consumer confidence, Ross Stores' off-price model and store expansion plans support long-term growth. The company's ability to exceed first-quarter revenue projections and maintain a strong finish has been noted by analysts, who see potential buying opportunities in the current market conditions.