Ross Stores crushes Q3 expectations with 10% sales surge and raised holiday outlook
Ross Stores has reported strong third-quarter results, beating market expectations. The discount retailer saw sales climb by 10% to $5.6 billion, while foot traffic rose by 9.4%. Management has also raised its outlook for the holiday season, citing confidence in its value-driven approach.
The company’s earnings came in at $1.58 per share, surpassing analyst forecasts of $1.42. This figure marks a 7% increase from the same period last year. Same-store sales grew by 7%, reinforcing the brand’s appeal to budget-conscious shoppers.
During the quarter, Ross absorbed around 5 cents per share in tariff-related costs. However, it expects these pressures to ease in the fourth quarter, becoming 'negligible'. The retailer also returned value to shareholders by repurchasing $262 million in stock, staying on course to buy back $1.05 billion for fiscal 2025. Additionally, the Board of Directors approved a new $3 billion share repurchase programme for the coming year.
Looking ahead, Ross plans to expand with 36 new Ross Dress for Less stores and four Dd’s Discounts locations across 17 states. Management has raised fourth-quarter guidance to $1.77–$1.85 per share, with same-store sales growth projected at 3–4%. Full-year earnings are now forecast at $6.38–$6.46 per share.
The company remains optimistic about holiday trading, attributing its confidence to a focus on quality, branded merchandise at competitive prices.
Ross Stores continues to grow, with sales and earnings both exceeding expectations. The retailer’s expansion plans and shareholder returns reflect its strong market position. Analysts will watch closely as it heads into the crucial holiday period with raised guidance.
