Retail

Ross Stores Begins Reopening After Reporting Sales Drop

Ross Stores Reports Sales Drop, Begins Reopening

Amid the ongoing spread of the pandemic throughout the country, Ross Stores, Inc. reported total Q1 sales of $1.8 billion compared to $3.8 billion in the prior year. The retailer said it wasn’t reporting comparable-store sales, as its shops were open for less than seven weeks of the 13-week period, per an announcement.

Ross Stores also registered a loss per share of 87 cents compared to earnings per share of $1.15 for the past year period. Additionally, the company reported a net loss for Q1 2020 of $306 million compared to net income of $421 million in 2019.

Chief Executive Officer Barbara Rentler said in the announcement, “Our first-quarter results reflect the unprecedented impact the COVID-19 pandemic has had on our business, which led to the closure of all stores and our first quarterly operating loss in more than 30 years. Operating margin for the period was negatively affected by the significant revenue decline from stores being closed for approximately half of the quarter and the aforementioned one-time, non-cash inventory valuation charge.”

On May 14, the company started a “phased process” of reopening retail locations on a “market by market basis." It said the decision came after a “careful review” of guidance from health advisers and officials, in addition to local, state and federal governments.

As of today (May 21), roughly 700 stores have reopened, and the remaining locations are scheduled to reopen in the weeks to come.

The news comes as TJX reported positive trends in store reopenings. Net sales were $4.4 billion for the first fiscal year quarter ending May 2, 2020, concluding with a net loss of $887 million. TJX does not have an appreciable online shopping capacity and closed all of its 4,529 retail locations globally on March 19. The company delivered a 5 percent comp-store sales rise throughout its Marshalls, HomeGoods and TJ Maxx brands for the month of February.

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