Ross Stores Withdraws Guidance, Taps Credit Line as Sales Deteriorate
Discount clothing retailer Ross Stores (NASDAQ: ROST) announced on Thursday that it's withdrawing its fourth-quarter and full-year 2020 earnings guidance -- which it issued just over two weeks ago on March 3. Due to the impact of the COVID-19 epidemic, the company is also drawing down $800 million under its revolving credit line to bulk up cash balances, while suspending its share repurchase program. In addition, the retailer told shareholders that it intends to curb its capital expenditures, and match inventory purchases to current sales levels going forward.
Like other retailers, Ross Stores is dealing with mandatory temporary store closures in some states, while experiencing drastically reduced foot traffic in stores that remain open. Management expects more store closures to follow.
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Source Fool.com
