Latest news with #JimConroy
Yahoo
27-05-2025
- Business
- Yahoo
Shop at Ross? Retailer says tariffs could increase prices
Add Ross Stores to the retailers expecting to raise some prices due to tariffs. Ross Stores, which operates Ross Dress for Less and DD's Discounts, may be forced to raise prices on some products, executives said during the company's first quarter earnings call on May 22. The retailer reported flat sales for the 13-week period ending May 3, compared to the same period a year ago. Net income of $479 million dipped nearly 2% from a year ago, but met expectations of analysts polled by S&P Global Market Intelligence. Sales increased each month during the quarter, but the effects of inflation and tariffs and inflation loom over the coming weeks, CEO Jim Conroy said in comments in the earnings release. 'Heightened macroeconomic and geopolitical uncertainty persists, most notably prolonged inflation and evolving trade policies," he said. National Hamburger Day 2025: Free food at Burger King, deals at Wendy's, Dairy Queen, more Trade policies continue to shift. Earlier this month, President Donald Trump reached a U.S.-China agreement to lower tariff rates on trade for 90 days – cutting the tariffs on Chinese imports from 145% on most goods to 30% tariff, while China reduced tariffs on U.S. goods from 125% to 10%. While Trump called on Walmart to "eat the tariffs," Ross Stores is among retailers including Walmart, Amazon, and Best Buy preparing customers for higher prices on some products. Half of the goods sold at its stores originate from China, Conroy said. "As such, we expect pressure on our profitability if tariffs remain at elevated levels," he said. Like other retailers, Ross Stores is trying multiple strategies to "mitigate the cost" of tariffs, but expects consumers to begin feeling their impact in late June and early July, chief operating officer Michael Hartshorn told analysts during the earnings call, according to a transcript from S&P Global Market Intelligence. In addition to finding products made in other countries, Ross Stores is working with suppliers to "get better costing, which we've done at this point, even in the second quarter," he said. Lastly, the retailer can increase the price charged for products, "but we want to be very careful with price increases," Hartshorn said. "We don't want to be the first one to raise prices, and we want to make sure that we keep our value or pricing umbrella versus mainstream retail." In the months ahead, this dilemma will be felt by consumers and retailers – many of which rely on goods from China, Conroy said. "At the end of the day, there's a lot of product, particularly over the next 6 months, that is going to be imported from China for us and for every other retailer and every other off-price company," he said. Ross Stores projected flat to 3% sales during the current 13-week period ending Aug. 2, compared to a 4% increase a year ago. Contributing: Kinsey Crowley, Margie Cullen, Kathryn Palmer Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day This article originally appeared on USA TODAY: Ross Stores: Tariffs will likely lead to higher prices
Express Tribune
27-05-2025
- Business
- Express Tribune
Ross Stores CEO makes bleak prediction amidst Trump China tariffs
Ross Dress for Less is grappling with a serious challenge as its first-quarter earnings for 2025 reveal stagnant sales and a decline in net income. The discount retailer, facing a shrinking customer base, is contemplating significant adjustments that could affect shoppers in the near future. For the first quarter, Ross Stores reported flat comparable sales compared to the same period last year, and net income of $479 million, which marked a nearly 2% drop from the previous year. This decline comes amid a steady decrease in customer visits, with data from showing a 2.7% year-over-year drop in visits per store. CEO Raises Alarm on Inflation and Tariffs In a May 22 earnings call, Ross CEO Jim Conroy addressed the troubling figures, attributing the company's weaker performance to both prolonged inflation and a shift in customer buying patterns. Conroy noted that consumers are increasingly gravitating toward functional items rather than discretionary products. He also highlighted tariffs as an emerging threat to profitability. The recent 10% tariff on imports imposed by the Trump administration, particularly on goods from China, is already affecting Ross, with over 50% of its products sourced from the country. Conroy warned that these tariffs, combined with rising inflation, could result in higher prices for consumers in the coming months. "The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable," said Conroy. "During these uncertain times, we will focus on what we can control and manage the business conservatively." Rising Prices Loom as Tariffs Impact Costs With tariffs expected to remain at elevated levels, Ross is exploring ways to adjust its pricing strategy. Conroy confirmed that the company will consider raising prices on certain items but stressed that the increases would be strategically planned, depending on whether the item is deemed functional or discretionary. "We want to be very careful with price increases," said Ross Chief Operating Officer Michael Hartshorn. "We don't want to be the first one to raise prices, and we want to make sure that we keep our value or pricing umbrella versus mainstream retail." While Ross aims to avoid a drastic price hike, the company plans to start adjusting prices around June or July this year. In addition to raising prices, Ross is negotiating with suppliers to manage import costs and is looking into sourcing products from alternative countries, though this shift is expected to take months and will not affect pricing until 2026. Shifting Consumer Habits As the prospect of higher prices looms, consumers are already altering their shopping habits in response to anticipated cost increases. A recent survey by market research firm Numerator found that 83% of Americans are preparing for the impact of tariffs by searching for sales and coupons, delaying purchases, and buying fewer imported goods. Ross Stores, known for offering discounted prices, is preparing for a challenging period as both the broader economic environment and consumer behaviour continue to evolve. The company's strategy in the months ahead will determine how it navigates the turbulent landscape of rising tariffs, inflation, and changing shopping trends.
Yahoo
25-05-2025
- Business
- Yahoo
Why Ross Stores Inc. (ROST) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Ross Stores Inc. (NASDAQ:ROST) stands against other Friday's worst-performing stocks. Discount retailer Ross Stores dropped its share prices by 9.85 percent on Friday to end at $137.26 each, primarily due to a pessimistic business outlook and the withdrawal of its earlier growth targets. 'While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. As such, we expect pressure on our profitability if tariffs remain at elevated levels,' said Ross Stores Inc. (NASDAQ:ROST) CEO Jim Conroy, adding that the company was withdrawing previously provided annual sales and earnings guidance. For the second quarter of the year, Ross Stores Inc. (NASDAQ:ROST) now expects same-store sales growth to remain flat or grow by up to 3 percent, much slower than the 4-percent gain registered in the same period last year. Earnings per share, on the other hand, are now projected to be in the range of $1.40 to $1.55, versus a $1.59 growth in the same comparable period. A close-up of a mannequin outfitted with the company's latest collection of apparel. In the first quarter of the year, Ross Stores Inc.'s (NASDAQ:ROST) net income edged lower by 1.8 percent to $479 million from the $488 million registered in the same period last year. Revenues grew by 2.6 percent to $4.984 billion from $4.858 billion year-on-year. Overall, ROST ranks 7th on our list of Friday's worst-performing stocks. While we acknowledge the potential of ROST, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ROST and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
23-05-2025
- Business
- Yahoo
Ross Stores Stock Tumbles as Retailer Pulls FY Outlook Amid Tariff Uncertainty
Ross Stores shares fell sharply in premarket trading Friday, a day after the off-price retailer withdrew its full-year outlook due to tariff uncertainty. Ross Stores said that more than half of the products it sells come from China. The company's first-quarter results came in slightly above analysts' of Ross Stores (ROST) sank 13% in premarket trading Friday, a day after the discount retailer pulled its full-year outlook due to the uncertainty caused by the Trump administration's shifting tariff policies. "Heightened macroeconomic and geopolitical uncertainty persists, most notably prolonged inflation and evolving trade policies," CEO Jim Conroy said. "While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China. As such, we expect pressure on our profitability if tariffs remain at elevated levels." The retailer only gave forecasts for the second quarter, and withdrew its full-year forecasts "given the varying nature of tariff announcements." In its first-quarter results after the bell Thursday, Ross Stores reported earnings per share of $1.47 on revenue of $4.98 billion. Both metrics came in slightly above Visible Alpha consensus. JPMorgan analysts kept their "overweight" rating on the retailer, but cut their price target by $20 to $141 following the results. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
22-05-2025
- Business
- Reuters
Ross Stores withdraws annual forecasts due to tariff pressures
May 22 (Reuters) - Discount store operator Ross Stores (ROST.O), opens new tab on Thursday withdrew its fiscal 2025 sales and profit forecasts and said tariffs could take a toll on its profitability this year, sending its shares down 8% in extended trading. Ross Stores said more than half the goods it sells are made in China. Macroeconomic uncertainty due to U.S. President Donald Trump's tariff policy, along with still-high inflation, has forced many consumer-facing companies to trim or withdraw their expectations for the year. "The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable. During these uncertain times, we will focus on what we can control and manage the business conservatively," said Ross Stores' CEO Jim Conroy. The company expects second-quarter earnings to be in the range of $1.40 to $1.55 per share, which includes a cost impact of $0.11 to $0.16 per share from announced tariffs.
