Ross Stores Q2 FY20: sales $2.68 bn; net earnings $22 mn

22 Aug '20

2 min read

Pic: Shutterstock

Ross Stores, a US-based chain of discount department stores, has posted decline in its sales to $2.68 billion during second quarter (Q2) fiscal 2020 that ended on August 1, 2020, compared to the sales of $3.97 billion in same period previous year. Company’s net earnings for the second quarter slipped to $22.0 million (Q2 FY19: $412.7 million).

“Comparable stores sales during the quarter were impacted by a number of factors. During the initial re-openings, sales were ahead of our conservative plans as we benefitted from pent-up demand and aggressive markdowns to clear aged inventory,” Barbara Rentler, chief executive officer at Ross Stores, said in a press release.

“In the weeks thereafter, trends were negatively impacted from depleted store inventory levels while we were ramping up our buying and distribution capabilities,” Rentler said.

“As we move into the third quarter, trends have not materially changed from the second quarter with comparable store sales for the first two and a half weeks trending down mid-teens versus last year. There remains significant uncertainty on how the pandemic will continue to evolve and affect consumer demand and the economy, and the potential exists for additional government mandated shutdowns if Covid-19 cases remain elevated or further increase,” Rentler said looking at the upcoming quarter.

Fibre2Fashion News Desk (JL)

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