Ross Stores Inc. (NASDAQ:ROST) saw its shares rise 5% intra-day on Friday after the off-price retailer reported better-than-expected third-quarter results and raised its full-year outlook. Strong comparable sales and disciplined cost control supported the company’s performance ahead of the holiday season.
Ross posted earnings per share of $1.58, topping analyst expectations of $1.41 and up from $1.48 a year earlier. Revenue grew 10% year over year to $5.6 billion, beating the $5.42 billion consensus, driven by a 7% increase in comparable store sales.
Operating margin expanded to 11.6%, helped by revenue strength and tighter expense management, despite an estimated $0.05 per share negative impact from tariff-related costs. Net income rose to $512 million, up from $489 million a year earlier.
The company ended the quarter with 2,273 stores across its Ross Dress for Less and dd’s DISCOUNTS banners, up from 2,192 stores last year. Ross repurchased 1.7 million shares for $262 million during the quarter and remained on pace to complete a $2.1 billion buyback program by year-end.
For the fourth quarter, Ross projected EPS of $1.77–$1.85, above analyst expectations at the midpoint, and lifted its holiday comparable sales outlook to 3%–4%. Full-year EPS is now expected to range between $6.38 and $6.46, compared with $6.32 last year, despite a projected $0.16 per share tariff impact.
