Ross Stores (ROST) Withdraws Guidance On COVID-19 Impacts
Zacks Investment Research | Mar 19, 2020 10:21PM ET
Ross Stores, Inc. (NASDAQ:ROST) provided an update on the COVID-19 impact on its operations. Despite beginning the fiscal on a solid note, the company withdrew its top and bottom-line guidance for fiscal 2020 and the first quarter in response to the ongoing COVID-19 outbreak and its unpredictable impacts.
Notably, the company has witnessed a dismal sales trend over the past week, following better-than-expected sales in February. This downside can be attributable to the ongoing pandemic, which led to a significant decline in store traffic as well as store closures in various markets. In fact, more stores are expected to close in the near future.
Further, to safeguard financial liquidity, the company suspended its share repurchase program and cut its capital expenditure and other expenses. Also, management has drawn $800 million from its revolving credit facility to add to its cash balance. Further, the company is making efforts to match its inventory as per the recent sales trend.
This Zacks Rank #3 (Hold) company plunged 43.1 % in the past three months compared with the Original post
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