Ross Stores Earnings Gamble

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Hello hellooo

I’ve never posted one of these before so pls feel free to judge and criticize so I get better

Looking at all of the other retail earnings plays this last earnings season, it’s clear that retail sentiment has been positive following Q4 reports (Macys, Victoria Secret, etc). With that being said, I’ve recently taken a gamble size position in Ross, ROST, who are scheduled to report earnings after hours today. Three out of the four last earnings reports they have beat earnings and estimates by a substantial amount which I’ve listed below :

Q3 2021: beat by 71%
Q1 2022 : beat by 51%
Q2 2022 : beat by 45%

Of course earnings is always a gamble but with the way retail has been performing this earnings season I thought it might be worthwhile to open a small position.

Feel free to add anything you’d like !

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They have been having increased metrics and visits
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they have increased traffic

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I’ve been doing lots of work on what’s happening in retail and after Macy’s playing out well and Bath & Body Works going good I think Ross has a good shot at beating but they are less likely to than others have been.

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This is good but remember that Ross doesn’t sell online because the way they source product and cut costs means it just isn’t effective to sell online. But the website does have a store locator and traffic shows sentiment on Ross is up.

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Ah I see I didn’t know that but yeah I did visit their website and saw only store locators so people are wanting to shop more there then?

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I was also curious about ROST on the back of other retail ER. However, I think I’m going to sit on the sidelines for this one, given their historical price action even against good beats. Note, % price change here is close-to-close, so it doesn’t tell you about the gap at open.

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Twitter sentiment and PI mentions are neutral for this earnings.

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I believe majority of people shop at ross if they go out to shop as they have amazing deals and decent quality clothing. Every store i have been to has had a line out the door!

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How was your experiences inside, always good?

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Not for me. Usually understaffed even before covid. Long lines and bad shopping experience. BUT it’s cheap new clothing and usually busy near me.

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I’ve never been but I have not heard of it until now seems like people want to know more about it however with the website search.

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Personally if the lines to long i usually leave! But never had any complaints

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I see well we will see in an about an hour. WIth the engagement I think there is something good about it.

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Sitting this one out but worth a gamble for the reasons you said. My only hesitancy has already been mentioned above and that is the recent brands that have run off earnings have done so mostly due to significant growth in E-COMMERCE which Ross doesn’t have. Regardless, they have a really strong consumer base and would expect that the store locator finder data probably meant a nice bump in retail buying.