Ross Stores stock is tumbling Thursday after the company reported another set of lackluster retail earnings.
Results were mixed against expectations as profits came in right in line at $0.73 per share. Sales were light both in total, at $3.09 billion versus $3.12 billion expected, and comparable store sales growth, 2% versus projections of 2.4%.
“Even though we faced our strongest prior year comparisons, sales performed at the high end of guidance, while earnings per share were slightly above our targeted range,” said CEO Barbara Rentler in a release accompanying earnings.
“Operating margin for the period of 15.4% was down from last year, but slightly above plan, mainly due to higher merchandise margins that partially offset the expected impact from the unfavorable timing of packaway-related costs.”
In response to the news, the discount retailer’s stock dropped nearly 10% in after-hours trading but has since bounced back and is down a little less than 7% as of 4:12 p.m. ET.
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