Ross Stores plunges after pulling annual forecasts on tariff hit

Ross Stores

23/05/2025 15:17

Updates

** Shares of discount store operator Ross Stores ROST.O slump as much as 14.4% to $130.40 in early trading

** Co withdrew its annual forecasts on Thursday after markets closed, warning of a hit from tariffs to its profitability this year

** Stock set for its worst day since May 2022

** Co expects Q2 EPS between $1.40 and $1.55 vs analysts' avg. estimate of $1.65 - data compiled by LSEG

** Over half of ROST's merchandise is sourced from China

 ** "We were surprised by management's ominous stance when discussing the remainder of 2025 as we expect Ross to comfortably withstand, and perhaps even benefit, from economic uncertainty" - Morningstar analyst Noah Rohr

 ** ROST beat Q1 sales and profit estimates on steady demand for cheaper clothing and accessories

**
Peer Burlington Stores' BURL.O shares down 8% at $237.8

** Up to last close, ROST stock up 0.65% YTD

(Reporting by Anuja Bharat Mistry and Savyata Mishra in Bengaluru)

((AnujaBharat.Mistry@thomsonreuters.com))