Quick take on ROST before the conf call.
ROST in line with preannouncement, but the interesting point here is the positive guidance.
This is the first company that I have seen that is taking numbers up meaningfully for 2Q and also addressing 2H. Their 2Q goes to $.60-$.63 vs. Street at $0.53. Full year up as well, $2.62-$2.72 vs. Street at $2.53.
Part of this was extremely conservative prior guidance but the other part is obviously more confidence in the sales trends. Saying flat to down 1% comps for 2Q on top of the toughest compare of the year (+6%).
This may be the biggest surprise of the morning given the size of the company and the trend we have been observing which is to raise #'s one month at a time. This is a case where the Street was still behind the curve on taking numbers above guidance.
Sigma showing tougher compares on the horizon, but the guidance mitigates this for now. Comping on comps is a trend we haven't seen for a while.