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Analysts slash targets on Ross Stores after revenues miss

A shopper shops in a Ross store in Lewiston, Idaho.
Francis Dean | Corbis | Getty Images
A shopper shops in a Ross store in Lewiston, Idaho.

Friday was a bad day for Ross Stores.

The company's stock fell more than 5 percent Friday, with at least five analyst firms cut their price targets on shares of Ross Stores on the heels of the company's latest quarterly results.

The retailer posted first-quarter earnings per share of 73 cents on Thursday, in line with expectations, on revenue of $3.09 billion, below Reuters' estimate of $3.12 billion. Ross also posted same-store sales growth of 2 percent, below FactSet's estimate of 2.5 percent.

"Even though we faced our strongest prior year comparisons, sales performed at the high end of guidance, while earnings per share were slightly above our targeted range," CEO Barbara Rentler said in a statement.

Analysts at Piper Jaffray cut their price target to $52 from $56 as Ross management failed to elaborate on how they will address issues facing ladies' apparel.

"Ladies' apparel, which accounts for 29 percent of the company's sales ... was indicated to be an underperforming category," Piper said in a Thursday note to clients. "On the call held with investors to discuss results, we note that the precise issue, nor the timeline for fixing the problem, was shared on the call."

Disclosure: Piper Jaffray is a market maker in Ross Stores.