Ross Stores Inc (NASDAQ:ROST) stock rose 0.41% (As on June 27, 1:06:42 AM UTC-4, Source: Google Finance) after Gordon Haskett downgraded the company to Accumulate from Buy with an unchanged price target of $120. Sentiment on the group remains depressed, with retail lagging the broader S&P 500 by over 1,000 basis points year-to-date, notes the firm, who adds that the firm’s survey work and proprietary traffic data “appear to be improving/bottoming, albeit modestly.”
Meanwhile, the company has approved a new employment agreement with Barbara Rentler, Vice Chair and Chief Executive Officer, which will now extend through March 31, 2027. The new agreement provides for Ms. Rentler, 65, to continue as CEO through January 31, 2026. By that date, the Board expects to have selected her successor, and Ms. Rentler will become a Senior Advisor through the end of March 2027.
On the other hand, like many retailers, the Company has been named in class/representative action lawsuits, primarily in California, alleging violations by the Company of wage and hour laws. Class/representative action litigation remains pending as of April 29, 2023. The Company is also party to various other legal and regulatory proceedings arising in the normal course of business. Actions filed against the Company may include commercial, product and product safety, consumer, intellectual property, environmental, and labor and employment-related claims, including lawsuits in which private plaintiffs or governmental agencies allege that the Company violated federal, state, and/or local laws. Actions against the Company are in various procedural stages. Many of these proceedings raise factual and legal issues and are subject to uncertainties.
Additionally, the company has declared a quarterly cash dividend of $0.335 per common share, payable on June 30, 2023. The Company’s Board of Directors declared a cash dividend of $0.335 per common share in February 2023 and $0.310 per common share in March, May, August, and November 2022. Stock repurchase program. In March 2022, the Company’s Board of Directors had approved a two-year program to repurchase up to $1.9 billion of the Company’s common stock through fiscal 2023. During the three month period ended April 29, 2023, the Company repurchased 2.2 million shares of common stock for $234.5 million, excluding excise tax due under the Inflation Reduction Act of 2022. The Company repurchased 2.5 million shares of common stock for $239.6 million during the three month period ended April 30, 2022.
In addition, the company projects earnings per share for the 53 weeks ending February 3, 2024 to be $4.77 to $4.99 compared to $4.38 for the 52 weeks ended January 28, 2023.