Ross Stores Q3 net sales climb 10 percent to 5.6 billion dollars

Ross Stores, Inc. delivered third quarter earnings per share of 1.58 on net income of 512 million dollars, despite an estimated 5 cents per-share negative impact from tariff-related costs. This compares to earnings per share of 1.48 dollars and net income of 489 million dollars in the same period last year.

Net sales for the quarter rose 10 percent to 5.6 billion dollars, while comparable store sales increased 7 percent, reflecting broad-based strength across merchandise categories and regions.

Chief executive officer Jim Conroy said the quarter’s performance exceeded expectations, driven by compelling branded merchandise values, strong customer response to a new marketing campaign, and an excellent back-to-school season. “The strength in top-line, coupled with our continued focus on expense control, resulted in an operating margin of 11.6 percent, which was much stronger than expected,” he noted.

Ross continued to return capital to shareholders, repurchasing 1.7 million shares for 262 million dollars during the quarter under its two-year 2.1 billion dollars authorization. The company remains on track to repurchase 1.05 billion dollars of stock in fiscal 2025.

Looking ahead to the holiday season, Ross raised its fourth-quarter comparable sales forecast to an increase of 3 to 4 percent, with projected earnings per share between 1.77 dollars and 1.85 dollars.

Based on year-to-date performance and the updated outlook, Ross increased its full-year fiscal 2025 earnings guidance to a range of 6.38 dollars to 6.46 dollars, including an estimated 16 cents per-share tariff impact.

Conroy added that the company remains optimistic about its holiday prospects, citing strong value offerings, well-positioned store and supply chain teams, and marketing campaigns that are resonating with consumers.