Ross Stores Withdraws Outlook

And, Intuit's "exceptional momentum."

May 23, 2025

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Ross Stores Withdraws Outlook

Ouch! Ross Stores $ROST ( ▲ 0.84% ) plunged 11.42% in after-hours trading on Thursday after disclosing financial earnings results and revoking its full-year financial outlook.

Financials: Ross Stores reported earnings of $1.47 per share and revenue of $5 billion in the past quarter. Both were better than expected.

Details: Comparable sales were flat year-over-year for the discount department store, which was also better than expected.

Powering the Story: Ross Stores also withdrew its annual sales outlook, blaming recent tariffs.

Early Bird’s Nest Egg Gains: Ross Stores’ withdrawal of its annual sales forecast for 2025 highlights broader challenges facing discount retailers at this moment.

  • Ross Stores and other discount retailers operate on thin profit margins, so even modest increases in costs from tariffs can significantly erode profitability.

  • Discount retailers attract customers by offering the lowest possible prices. When tariffs force them to raise prices, they risk losing their core value proposition.

Final Thoughts: Shares were already flat for the year. It’s a bad time for many retail stocks.

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Notables

Notable Earnings Today: Booz Allen Hamilton (NYSE: BAH), The Buckle (NYSE: BKE), MINISO Group (NYSE: MNSO).

Notable IPOs Today: Soulpower Acquisition Corporation (NYSE: SOUL).

Notable Equity Crowdfunding Campaigns Ending Today: Freedom Chat (Republic), See and Be Kitchen (Honeycomb).

Notable Economic Events Today: Building Permits (8:30 a.m. ET), New Home Sales (10:00 a.m. ET).

Intuit's "Exceptional Momentum"

Financial software company Intuit $INTU ( ▼ 0.5% ) jumped 7.96% in after-hours trading on Thursday after posting strong financial earnings results.

Financials: Intuit reported earnings of $11.65 per share and revenue of $7.8 billion in the past quarter. Both were better than expected.

Details: Revenue for Credit Karma surged by 31% in the past quarter.

Quote: “We have exceptional momentum with outstanding performance across our platform. We're redefining what's possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses.” - CEO Sasan Goodarzi.

Final Thoughts: Intuit, which was up 6.95% this year, also raised its financial outlook on Thursday.

Workday’s New Buyback Ignored

Despite posting good financial earnings results on Thursday, the financial management software company Workday $WDAY ( ▲ 2.46% ) fell 6.90% in after-hours trading.

Financials: Workday reported earnings of $2.23 per share and revenue of $2.24 billion in the past quarter. Both were better than expected.

Details: On Thursday, the company announced a $1 billion stock buyback to boost the stock price, but investors were more focused on Workday’s lackluster financial outlook.

Final Thoughts: Workday’s stock was up 8% this year.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.