Ross Stores (ROST) 2Q16 RESULTS: ABOVE EXPECTED PERFORMANCE; WOMEN’S BUSINESS CHALLENGING

Executive Summary

• Ross Stores reported 2Q16 EPS of $0.71 and beat the consensus estimate of $0.67, and was up 13% from last year.
• The Midwest was one of the strongest performing regions, and the company plans further expansion there. Weakness in the ladies’ apparel business and rising labor costs are two headwinds for Ross Stores.
• The company slightly lowered its guidance for the fiscal year and guided for EPS of $2.69–$2.75 versus the prior guidance of $2.63–$2.72.