Ross Stores Inc. ROST, +1.73% shares declined more than 5% in late trading Thursday afternoon after the retailer showed off better second-quarter results than expected but disappointed Wall Street with its guidance for the second half of the year. Ross reported net earnings of $389.4 million, or $1.04 a share, on sales of $3.74 billion, up from earnings of 82 cents a share and sales of $3.43 billion a year ago. Analysts on average were expecting earnings of $1.01 a share on sales of $3.66 billion, according to FactSet. The forecast, though, did not beat expectations. "While we hope to do better, given our robust multi-year comparisons, we continue to forecast same-store sales to grow 1% to 2% for both third and fourth quarters," Chief Executive Barbara Rentler said in Thursday's announcement. She said that Ross expects earnings of 84 to 88 cents a share in the third quarter and $1.02 to $1.07 a share in the fourth quarter, while analysts on average were expecting 88 cents a share and $1.09 a share for those two quarters, according to FactSet. Rentler also said Ross now expects to eventually have 3,000 locations, up from a previous estimate of 2,500, when combined with its dd's Discounts chain. After closing at an all-time high of $95.03, Ross shares declined to less than $90 in late trading after the report was released.
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