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Ross Stores Tops Q3, Raises Full-Year and Holiday Outlook on Discount Demand

Stronger traffic from price-sensitive shoppers spurred the retailer to raise profit targets into the holiday quarter.

Overview

  • Third-quarter revenue came in at $5.60 billion versus $5.42 billion expected, with comparable sales up 7%.
  • Earnings per share were $1.58, topping the $1.41 consensus, and operating margin reached 11.6%.
  • Full-year EPS guidance increased to $6.38–$6.46, up from $6.08–$6.21 previously.
  • Fourth-quarter EPS guidance rose to $1.77–$1.85, and holiday same-store sales are now projected to grow 3%–4%.
  • Shares climbed about 3% after hours post-release and traded roughly 6% higher Friday, as several analysts raised price targets.