By Connor Hart

Ross Stores logged lower profit and revenue in its fiscal fourth quarter and warned of softer demand trends to start the year, prompting the company to issue a cautious outlook.

The chain of discount department stores on Tuesday posted a profit of $586.8 million, or $1.79 a share, for the 13 weeks ended Feb. 1, compared with a profit of $609.7 million, or $1.82 a share, a year earlier.

Analysts polled by FactSet expected $1.66 a share.

Revenue fell 1.8% to $5.91 billion, just missing the $5.95 billion that analysts modeled.

The Dublin, Calif., company said that comparable sales, which adjust for store openings and closings, increased 3%, topping the 2.6% raise that analysts were looking for, according to FactSet.

Chief Executive Jim Conroy warned that sales softened throughout January and February, prompting the company to take a cautious approach to its guidance.

"We believe a combination of unseasonable weather and heightened volatility in the macroeconomic and geopolitical environments has negatively impacted customer traffic," he said.

For its fiscal first quarter, ending May 3, Ross forecast per-share earnings of $1.33 to $1.47, as well as same-store sales to be down 3% to flat. Analysts surveyed by FactSet expect earnings of $1.53 a share and same store sales up 2.4%.

In fiscal 2025, the company guided for per-share earnings of $5.95 to $6.55, missing the $6.67 that analysts forecast. It called for same-store sales of down 1% to up 2%, also below the 3% increase that analysts modeled.

Shares fell 2.6%, to $132.45, in after-hours trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 04, 2025 16:19 ET (21:19 GMT)

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