Sales Performance - Sales for the three-month period ended November 1, 2025, increased by $0.5 billion, or 10%, compared to the same period in 2024, driven by a 7% increase in comparable store sales and a $0.2 billion increase in non-comparable store sales [73]. - Comparable store sales growth for the nine-month period ended November 1, 2025, was 3%, reflecting a 2% increase in basket size and a 1% increase in traffic [74]. - The company opened 40 new stores in the third quarter of fiscal 2025, completing a total of 90 new store openings for the fiscal year [68]. Financial Performance - Operating income as a percentage of sales decreased by 35 basis points for the three-month period and 45 basis points for the nine-month period ended November 1, 2025, primarily due to increased cost of goods sold [81]. - Diluted earnings per share for the three-month period ended November 1, 2025, increased by $0.10, or 7%, to $1.58, attributed to a 5% increase in net earnings and a 2% reduction in weighted-average diluted shares outstanding [87]. - The effective tax rate for the three-month period ended November 1, 2025, was approximately 25%, up from 24% in the same period in 2024, primarily due to tax effects associated with stock-based compensation [85]. Cost Management - Cost of goods sold as a percentage of sales for the three-month period ended November 1, 2025, increased by approximately 35 basis points, mainly due to higher distribution costs and tariff-related processing costs [77]. - Selling, general and administrative expenses increased by $0.1 billion for the three-month period ended November 1, 2025, primarily due to higher store-related costs [79]. Cash Flow and Investments - Net cash provided by operating activities was $1.9 billion for the nine months ended November 1, 2025, compared to $1.5 billion for the same period in the prior year, reflecting a $0.4 billion increase [92][93]. - Cash used in investing activities increased to $0.6 billion for the nine months ended November 1, 2025, from $0.5 billion in the prior year, primarily due to higher capital expenditures related to a new distribution center [96][97]. - Net cash used in financing activities was $2.0 billion for the nine months ended November 1, 2025, up from $1.5 billion in the prior year, mainly due to increased Senior Note repayments [99][100]. Debt and Shareholder Returns - As of November 1, 2025, the company had approximately $1.5 billion of outstanding unsecured Senior Notes, with $499 million classified in current liabilities [102]. - The company repurchased 5.6 million shares of common stock for $787.5 million under its stock repurchase program during the nine months ended November 1, 2025 [103]. - The company declared a quarterly cash dividend of $0.4050 per common share on November 19, 2025, with total cash dividends paid of $397.2 million for the nine months ended November 1, 2025 [104]. Inventory and Capital Expenditures - Packaway inventory represented 36% of total inventory as of November 1, 2025, compared to 38% a year earlier, indicating a strategic management of inventory levels [95]. - Capital expenditures for fiscal 2025 are projected to be approximately $800 million, focusing on new stores and supply chain investments [98]. Liquidity - The company ended the third quarter of fiscal 2025 with $4.1 billion of unrestricted cash balances, indicating strong liquidity [106]. - The company expects existing cash, cash equivalents, and credit facilities to meet operational needs for at least the next 12 months [106].

Core Insights - The three major off-price chains in the U.S. successfully mitigated the impact of new tariffs imposed by the Trump administration in Q3, a feat not commonly achieved by other retailers this year [1][2]. Company Performance - **TJX Companies**: - Achieved a gross margin increase of 1 percentage point to 32.6% and a net income rise of 11% to $1.4 billion in Q3. - Overall net sales increased by 7% year over year to over $15 billion, with comparable store sales at Marmaxx rising by 6% and at U.S. HomeGoods by 5% [3][4]. - **Ross Stores**: - Sales grew by 10% year over year to $5.6 billion, with comparable store sales up by 7%. - Operating margin decreased by 35 basis points to 11.6% due to tariff impacts, although the company managed to partially offset these costs through opportunistic buys and an increase in name brands [5]. - **Burlington Stores**: - Total sales rose by 7% from last year to $2.7 billion, with comparable store sales increasing by 1%. - Despite mixed results, gross margin expanded by 30 basis points to 44.2%, and merchandise margin increased by 10 basis points [6].

Group 1 - The core viewpoint of the article emphasizes the market performance and strategic positioning of Ross Stores Inc. in the retail sector, highlighting its resilience amid economic fluctuations [1] Group 2 - The article discusses Ross Stores' recent financial results, noting a revenue increase of 5% year-over-year, reaching $4.2 billion, driven by strong customer demand and effective inventory management [1] - It mentions that the company's same-store sales rose by 3% in the last quarter, indicating a positive trend in consumer spending [1] - The analysis highlights Ross Stores' strategic initiatives, including expansion plans and cost management efforts, which are expected to enhance profitability in the coming quarters [1]

Core Insights - Ross Stores, Inc. (ROST) is a leading off-price retailer with a market cap of $57.8 billion, operating under the Ross Dress for Less and dd's DISCOUNTS brands [1] - ROST has a total of 1,831 Ross stores and 355 dd's DISCOUNTS stores, offering discounts of 20% to 60% on brand-name merchandise, which attracts value-conscious shoppers [2] Financial Performance - ROST reported Q3 results with an EPS of $1.58, exceeding Wall Street expectations of $1.40, and revenue of $5.6 billion, surpassing forecasts of $5.4 billion [5] - The company expects full-year EPS to be between $6.38 and $6.46 [5] Stock Performance - Over the past three months, ROST stock gained 17.4%, outperforming the Nasdaq Composite's 10% gains [3] - On a six-month basis, ROST shares rose 24.7%, outperforming the Nasdaq's 21.7% gains, but the stock climbed only 13.6% over the past 52 weeks, underperforming the Nasdaq's 20.7% returns [4] - ROST has been trading above its 50-day and 200-day moving averages since late July and early August, respectively, indicating a bullish trend [4] Competitive Landscape - In the competitive apparel retail space, The TJX Companies, Inc. (TJX) has shown resilience with an 18.9% increase over the past 52 weeks, while ROST's six-month gains were 16.8% [6] - Wall Street analysts have a consensus "Moderate Buy" rating for ROST, with a mean price target of $182.33, suggesting a potential upside of 2.7% from current price levels [6]

Core Viewpoint - Ross Stores, Inc. has received a "Buy" rating upgrade from Jefferies, reflecting confidence in its future performance and potential for stock price increase [1][2][5] Group 1: Company Performance - Ross Stores operates in the off-price retail sector, offering apparel, footwear, and home accessories, competing with discount retailers like TJX Companies and Burlington Stores [1] - The stock price of ROST is currently $177.50, showing a slight increase of approximately 0.65% or $1.14, with a trading range today between $174.88 and $178.80 [3] - The stock has experienced significant growth over the past year, with a low of $122.36 and a high of $178.80 [3] Group 2: Market Position - Ross Stores has a market capitalization of approximately $57.73 billion, indicating a strong presence in the retail market [4][5] - The trading volume today is 2,306,777 shares, demonstrating strong investor interest in ROST [4] Group 3: Analyst Ratings - Jefferies has increased the price target for ROST from $190 to $205, signaling a positive outlook for the company's earnings prospects [1][5] - The Zacks Rank 2 (Buy) rating for Ross Stores further supports the positive sentiment regarding the company's future earnings [2][5]

Core Viewpoint - Ross Stores (ROST) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Business Improvement Indicators - The upgrade in Ross Stores' rating reflects an improvement in the company's underlying business, suggesting that investor sentiment regarding this trend could drive the stock price higher [4]. Earnings Estimate Revisions - For the fiscal year ending January 2026, Ross Stores is projected to earn $6.36 per share, consistent with the previous year's figure, while the Zacks Consensus Estimate has increased by 4.4% over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9].

Retail Industry Overview - Retail earnings reports indicate that comparable store sales and traffic have exceeded expectations, with notable Q3 performance driven by pricing strategies [2][3] - Retailers across various segments have increased prices in response to tariffs, experiencing less price resistance than anticipated, which has positively impacted comparable sales [3] Consumer Sentiment and Guidance - Retailers targeting middle and lower-income consumers are cautious due to declining consumer sentiment, leading to conservative Q4 guidance [4] - There is a noticeable bifurcation in consumer sentiment between higher and lower-income groups, affecting retail strategies [7] Company-Specific Insights: Burlington Stores - Burlington is identified as the smallest and lowest quality player in the off-price retail sector, facing challenges compared to competitors like TJX and Ross Stores, which are more established [5] - Burlington's recent performance showed a modest increase in comparable sales (+1%), while competitors reported significantly higher growth (+6% to +7%) [6] Investment Outlook - The market is expected to favor companies perceived as safer investments amid consumer risk, particularly those catering to higher-income consumers, such as TJX [7][8] - TJX is viewed as a strong investment option due to its quality and resilience in the current market environment [6][8]

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher as stocks tend to continue in their established direction [1] - Ross Stores (ROST) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2][3] - ROST has a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the market [3] Price Performance - ROST shares have increased by 8.36% over the past week, while the Zacks Retail - Discount Stores industry has declined by 2.49% during the same period [5] - Over the past quarter, ROST shares have risen by 16.69%, and over the last year, they have gained 14.33%, compared to the S&P 500's increases of 5.38% and 14.31%, respectively [6] Trading Volume - ROST's average 20-day trading volume is 2,920,602 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the past two months, 6 earnings estimates for ROST have been revised upwards, increasing the consensus estimate from $6.19 to $6.36 [9] - For the next fiscal year, 6 estimates have also moved higher with no downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, ROST is recommended as a 2 (Buy) stock with a Momentum Score of A, making it a potential pick for investors [11]

Core Insights - Two stocks in the consumer discretionary sector are signaling potential warnings for momentum-focused investors as of November 25, 2025 [1] Company Performance - Ross Stores Inc reported better-than-expected third-quarter financial results and raised its fourth-quarter GAAP EPS guidance, with a stock price increase of approximately 10% over the past five days and a 52-week high of $177.32 [6] - The RSI value for Ross Stores is 80.5, indicating it is overbought [6] - Citi Trends reported second-quarter sales of $190.75 million, an 8% year-over-year increase, surpassing analyst expectations, with a stock price increase of around 25% over the past month and a 52-week high of $45.63 [6] - The RSI value for Citi Trends is 77.3, also indicating it is overbought [6]

Core Insights - Two stocks in the consumer discretionary sector are signaling potential warnings for momentum-focused investors as of November 25, 2025 [1] Company Performance - Ross Stores Inc reported better-than-expected third-quarter financial results and raised its fourth-quarter GAAP EPS guidance, with CEO Jim Conroy noting strong sales and customer engagement [6] - Ross Stores' stock gained approximately 10% over the past five days, reaching a 52-week high of $177.32, with an RSI value of 80.5 and a closing price of $176.50 [6] - Citi Trends reported second-quarter sales of $190.75 million, an 8% year-over-year increase, exceeding analyst expectations, and noted a 9.2% rise in comparable store sales for the fourth consecutive quarter [6] - Citi Trends' stock increased around 25% over the past month, achieving a 52-week high of $45.63, with an RSI value of 77.3 and a closing price of $45.17 [6]