Investing.com -- Ross Stores Inc (NASDAQ:ROST) got a boost after the retailer reported a stronger-than-expected second quarter and offered fourth-quarter guidance above consensus targets.
The company reported earnings of $1.32 a share on revenue of $4.93 billion, up 7.7% from the same time last year. Analysts expected earnings of $1.16 a share on revenue of $4.75B.
Comparable store sales were up 5%, and the operating margin was 11.3%. Both measures were better than its earlier guidance.
Shares rose 4.6% in after-hours trading. They are down 2.6% so far this year.
For the third quarter, Ross sees earnings per share of $1.16 to $1.21, which is in-line with expectations. Fourth quarter guidance is for earnings per share of $1.58 to $1.64, which is above expectations.
"We are pleased with our second quarter results, with both sales and earnings well above our expectations,” CEO Barbara Rentler said. “Along with easing inflationary pressures, customers responded well to our improved value offerings throughout our stores.”
The report comes after another off-price retailer, TJX Cos (NYSE:TJX), beat expectations on stronger-than-expected customer traffic.