Ross Stores Inc (NASDAQ:ROST) stock rose 3.22% (As on November 22, 12:01:49 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings that beat analyst expectations, despite sales falling short of estimates. Net income for the period rose to $489 million versus $447 million last year. The comparable store sales up 3% over the prior year. Severe weather, including hurricanes and unseasonably warm temperatures, negatively impacted comparable store sales by about 1%. The company is disappointed with the third quarter sales results as business slowed from the solid gains we reported in the first half of 2024. Although the low-to-moderate income customers continue to face persistently high costs on necessities pressuring their discretionary spending, the company believe that it should have better executed some of the merchandising initiatives. In addition, a combination of severe weather during the quarter from Hurricanes Helene and Milton, along with unseasonably warm temperatures, also negatively impacted the results.

ROSS in the third quarter of FY 24 has reported the adjusted earnings per share of $1.48, beating the analysts’ estimates for the adjusted earnings per share of $1.40. The company had reported the adjusted revenue growth of 4.9 percent to $5.07 billion in the third quarter of FY 24, missing the analysts’ estimates for revenue of $5.16 billion.  Operating margin for the quarter was 11.9%, up from 11.2% last year, as lower incentive, freight, and distribution costs more than offset the planned decline in merchandise margin.

Additionally, during the third quarter, the company repurchased 1.8 million shares of common stock for an aggregate price of $262 million. The company remains on track to buy back a total of $1.05 billion in common stock during fiscal 2024 under the Company’s two-year $2.1 billion repurchase program

For the fourth quarter, Ross Stores expects comparable store sales to rise 2% to 3%. The company forecasts Q4 EPS of $1.57 to $1.64, below the $1.67 consensus estimate. However, full-year EPS guidance of $6.10 to $6.17 brackets analyst expectations of $6.13.

Ross Stores repurchased 1.8 million shares for $262 million in Q3 and remains on track to buy back $1.05 billion in stock during fiscal 2024.

The company completed its 2024 expansion program, adding 43 new Ross and four dd’s DISCOUNTS stores, totaling 89 new locations for the year. The company operated 2,192 Ross and dd’s DISCOUNTS locations as of quarter-end, up from 2,112 stores a year ago.