Off-price apparel brand Ross Stores is feeling the sting of market volatility, with a drop in net income despite increased sales. 

The company recorded a net income of $479 million in the first quarter of this year, down from $488 million during the same period last year. 

However, sales increased from $4.8 billion last year to $5 billion this year, with flat year-on-year comparable store sales. 

The company’s operating income was $606 million, up from $591 million, with an operating margin of 12.2 per cent. 

Ross Stores cited evolving trade policies, prolonged inflation, and heightened macroeconomic and geopolitical uncertainty as the cause of its decreased profit. 

“While we directly import only a small portion of our merchandise, more than half of the goods we sell originate from China,” said CEO Jim Conroy. “As such, we expect pressure on our profitability if tariffs remain at elevated levels. 

“Given the varying nature of tariff announcements, we are only providing an outlook for the second quarter at this time and are withdrawing our previously provided annual sales and earnings guidance,” he said.