May 21 (Reuters) – Value retailer Ross Stores raised its annual comparable sales and profit forecast on Thursday, betting on resilient demand for its discounted apparel and accessories despite looming macroeconomic uncertainty.
Shares of the company rose about 6% in extended trading.
Off-price retailers like Ross Stores continue to attract budget-conscious shoppers hunting for bargains, as persistent inflationary pressures weigh on household spending.
“We saw a healthy increase in customer count on a comparable-store basis across income levels, ethnicities, and age groups, including younger customers,” CEO Jim Conroy said during the earnings call.
Rival TJX also mirrored this trend on Wednesday, raising its annual comparable sales and profit forecasts, banking on continued demand for its value offerings.
Ross now expects annual same-store sales to rise 6% to 7%, compared with its previous forecast of 3% to 4% growth.
It also projected annual earnings per share of $7.50 to $7.74, up from its previous forecast of $7.02 to $7.36.
For the first quarter ended May 2, comparable sales rose 17%. They were muted during the same period last year.
The company reported a quarterly profit of $2.02 per share, topping estimates of $1.73 per share, according to data compiled by LSEG.
(Reporting by Krisha Bhatt in Bengaluru; Editing by Diti Pujara)
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