Ross Stores Inc (NASDAQ:ROST) shares were up 7.35% in Friday's premarket deal, at $128.98, thanks to forecast topping third-quarter financials.
The discount retailer posted earnings of $1.33 per share on revenue of $4.92 billion, compared to expectations of $1.22 per share on revenue of $4.85 billion.
Looking ahead, Ross guided for full-year earnings between $5.30 and $5.36 per share, up from its previous guidance of $5.15 to $5.26 per share.
CEO Barbara Rentler noted that consumers have increasingly turned to discount stores like Ross in recent quarters due to rising prices across sectors.
"We remain confident in the resilience of the off-price sector... especially given consumers' heightened focus on value and convenience," Rentler said in a statement.
To that point, TJ Maxx parent company TJX Companies Inc (NYSE:TJX) also raised its full-year guidance when it reported earlier this week.
However, Ross did shrink its fourth-quarter earnings estimate to a range of $1.56 to $1.62 per share, down from $1.58 to $1.64 per share.
"We expect it to be a very promotional retail environment and now you have geopolitics into the mix... we think it's prudent to remain very conservative in running the business in the fourth quarter," COO Michael Hartshorn said.