Bulletin
Investor Alert

Market Pulse Archives

Dec. 7, 2021, 1:48 p.m. EST

Ross Stores facing tough comp sales as lower-income consumers feel inflation squeeze

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Ross Stores Inc. (ROST)
  • X
    S&P 500 Index (SPX)

or Cancel Already have a watchlist? Log In

By Tonya Garcia

Ross Stores Inc. /zigman2/quotes/202639496/composite ROST -2.05% was downgraded to market perform from outperform at Cowen on concerns that the off-price retailer is facing tough comparable sales as its lower-income customers feel the squeeze of inflation. Analysts note the higher levels of spending in recent months, facilitated by stimulus payments. "This broad level of spending is unsustainable, in our view," Cowen says. Ongoing supply chain disruption is also a factor. "[W]e think consensus estimates underestimate inflationary headwinds in the near-to-medium-term which may represent a challenge to the company's margin structure," the note said. "We remain constructive on long-term market share opportunity for off-price retail in general." Ross stock has slumped 7.2% in 2021 while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.89% has gained nearly 25% for the period.

/zigman2/quotes/202639496/composite
US : U.S.: Nasdaq
$ 95.43
-2.00 -2.05%
Volume: 3.09M
Jan. 21, 2022 4:00p
P/E Ratio
21.24
Dividend Yield
1.19%
Market Cap
$33.72 billion
Rev. per Employee
$193,653
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,397.94
-84.79 -1.89%
Volume: 3.20B
Jan. 21, 2022 4:52p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.