Business
Ross Stores Issues Business Update Related to COVID-19
DUBLIN, Calif.--(BUSINESS WIRE)-- Ross Stores, Inc. (NASDAQ: ROST) provided a business update today in response to the impact of COVID-19 on the Company’s
About this update from Ross Stores, Inc.
[{"type":"text","content":" DUBLIN, Calif.--(BUSINESS WIRE)--\nRoss Stores, Inc. (NASDAQ: ROST) provided a business update today in response to the impact of COVID-19 on the Company’s operations. While February sales were ahead of its expectations, the Company has experienced a broad-based deceleration in sales trends over the past week from the continued spread of the virus throughout the country and the mandatory closure of stores in certain markets. Further, additional store closures are expected.\n\n\nAs a result of this unprecedented period of uncertainty, including the unknown duration and overall impact on consumer demand, the Company is withdrawing its first quarter and 2020 full year sales and earnings guidance issued on March 3, 2020. To preserve financial liquidity, and out of an abundance of caution, management is also temporarily suspending the Company’s stock repurchase program and is drawing down $800 million under its revolving credit facility to add to its cash balances. In addition, the Company is currently reducing its capital expenditure and expense plans as well as aligning inventory positions with current sales trends in the business.\n\n\nBarbara Rentler, Chief Executive Officer, commented, “I want to emphasize that our Company began 2020 in a strong financial position. We are proactively taking these early actions to further increase our liquidity and flexibility to successfully manage through these challenging times. We will continue to monitor ongoing developments and respond accordingly.”\n\n\nForward-Looking Statements: This press release contains forward-looking statements regarding expected sales, earnings levels, new store growth, and other financial results in future periods that are subject to risks and uncertainties which could cause our actual results to differ materially from management’s current expectations. The words “plan,” “expect,” “target,” “anticipate,” “estimate,” “believe,” “forecast,” “projected,” “guidance,” “outlook,” “looking ahead,” and similar expressions identify forward-looking statements. Risk factors for Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS® include without limitation, the recent and ongoing uncertainties and potential business disruption from the COVID-19 outbreak; competitive pressures in the apparel or home-related merchandise retailing industry; changes in the level of consumer spendi...