Why Ross Stores Stock Plunged 25% at the Open Today
Shares of Ross Stores (NASDAQ: ROST), a discount apparel and home fashion retailer, fell just shy of 25% at the open of trading on May 20. That massive drop was precipitated by the company's first-quarter 2022 earnings update, which hit the Street after the close on May 19. Investors clearly didn't like what they saw.
On the top line, Ross Stores brought in $4.3 billion in the first quarter of 2022, down from $4.5 billion in the same period of 2021. Comparable-store sales declined 7%, which is not particularly encouraging. Management tried to put a positive spin on that figure, however, by noting the 13% year-over-year comps gain in the first quarter of 2021.
So it was a very tough comparison, but slowing same-store sales at a time when investors are worried about a potential recession is still not a positive. Analysts, meanwhile, had been looking for sales that were slightly higher.
Source Fool.com
