Ross Stores Inc (NASDAQ:ROST) shares delivered a strong performance in the third quarter of fiscal 2025, sending its shares almost 5% higher in early trade on Friday.
The off-price retail chain’s revenue rose 10.4% year-over-year to $5.6 billion, surpassing analyst estimates of roughly $5.44 billion.
Earnings per share (EPS) of $1.58 were well above Wall Street’s expectations of around $1.42.
Net income increased to $512 million from $489 million in Q3 2024.
Comparable store sales climbed 7%, while the company maintained an operating margin of 11.6%, despite tariff-related costs that reduced EPS by about $0.05.
Ross Stores also completed its 2025 expansion plan, opening 36 new Ross stores and 4 dd’s DISCOUNTS locations during the quarter.
“Our merchandise assortment of compelling brand name values resonated with shoppers, and our new marketing campaign drove excitement and higher customer engagement,” Ross Stores CEO Jim Conroy said in a statement.
“The strength in top-line, coupled with our continued focus on expense control, resulted in an operating margin of 11.6% that was much stronger than expected.”
Looking ahead, Ross raised its Q4 guidance, forecasting comparable store sales growth of 3% to 4% and EPS between $1.77 and $1.85.
For full-year fiscal 2025, the company now expects EPS in the range of $6.38 to $6.46, factoring in approximately $0.16 per share in tariff-related costs.