Ross Stores, Inc. (ROST) CEO Barbara Rentler on Q2 2022 Results - Earnings Call Transcript

Ross Stores, Inc. (NASDAQ:ROST) Q2 2022 Results Conference Call August 18, 2022 4:15 PM ET

Company Participants

Barbara Rentler - CEO

Michael Hartshorn - Group President and COO

Adam Orvos - EVP and CFO

Connie Kao - Group VP and IR

Conference Call Participants

Lorraine Hutchinson - Bank of America

Paul Lejuez - Citigroup

Kimberly Greenberger - Morgan Stanley

Chuck Grom - Gordon Haskett

Matthew Boss - JPMorgan

Adrienne Yih - Barclays

Mark Altschwager - Baird

Brook Roach - Goldman Sachs

Michael Binetti - Credit Suisse

Ike Boruchow - Wells Fargo

Jay Sole - UBS

Dana Telsey - Telsey Advisory Group

Laura Champine - Loop Capital

Aneesha Sherman - Bernstein

Corey Tarlowe - Jefferies

Simeon Siegel - BMO Capital Markets

Marni Shapiro - Retail Tracker

Operator

Good afternoon, and welcome to the Ross Stores Second Quarter 2022 Earnings Release Conference Call. The call will begin with prepared comments by management, followed by a question-and-answer session. [Operator Instructions]

Before we get started, on behalf of Ross Stores, I would like to note that the comments made on this call will contain forward-looking statements regarding expectations about future growth and financial results, including sales and earnings forecasts, new store openings and other matters that are based on the Company's current forecast of aspects of its future business. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations. Risk factors are included in today's press release and the Company's fiscal 2021 Form 10-K and fiscal 2022 form 10-Q and 8-K on file with the SEC.

Now, I would like to turn the call over to Barbara Rentler, Chief Executive Officer.

Barbara Rentler

Good afternoon. Joining me on our call today are Michael Hartshorn, Group President and Chief Operating Officer; Adam Orvos, Executive Vice President and Chief Financial Officer; and Connie Kao, Group Vice President, Investor Relations.

We'll begin our call today with a review of our second quarter 2022 performance followed by our updated outlook for the second half and fiscal year. Afterwards, we will be happy to respond to any questions you may have. As noted in today's press release, we are disappointed with our sales results, which were impacted by the mounting inflationary pressures are customer base, as well as an increasingly promotional retail environment. Earnings came in above our guidance range, primarily due to lower incentive costs resulting from the below plan top-line performance.