Plenty of analysts believe that Ross Stores stands to benefit as people see prices creeping up elsewhere in their budgets and decide to trade down in apparel. ...

Financial Data and Key Metrics Changes - Total sales for the third quarter grew 10% to $5.6 billion, with comparable store sales increasing by 7% [5][6] - Earnings per share for the third quarter were $1.58, compared to $1.48 in the prior year, with net income of $512 million [6][7] - For the first nine months, earnings per share were $4.61, up from $4.53 in the same period last year, with net earnings of $1.5 billion [7] Business Line Data and Key Metrics Changes - Strongest merchandise areas in the third quarter included cosmetics, shoes, and ladies' apparel [8] - The branded strategy has positively impacted the ladies' business, which comped above the chain average [10] Market Data and Key Metrics Changes - Geographic performance showed broad-based strength, particularly in the Southeast and Midwest regions [8][12] - The company opened 36 new Ross and four dd's DISCOUNTS stores during the third quarter, completing its expansion program for 2025 [9] Company Strategy and Development Direction - The company has fully embedded its branded strategy into its merchandising approach, focusing on delivering high-quality branded bargains [9][10] - The marketing campaigns have been updated to resonate with younger customers, aiming to enhance customer engagement [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, raising the comparable store sales forecast to 3-4% and earnings per share guidance for fiscal 2025 to $6.38-$6.46 [13][14] - The company expects tariff-related costs in the fourth quarter to be negligible, indicating improved cost management [14] Other Important Information - The company repurchased 1.7 million shares for an aggregate cost of $262 million, remaining on track to buy back a total of $1.05 billion in shares this year [13] - Total consolidated inventories were up 9% versus last year, with average store inventories up 15% as the company prepared for the holiday season [8] Q&A Session Summary Question: Can you break down the inflection in same-store sales? - Management noted broad-based strength across all major merchandise categories and regions, attributing some improvement to internal initiatives and favorable weather conditions [20][22] Question: What are the major drivers of the improvement in momentum? - Management highlighted the sophistication of the merchandising team and the importance of aligning merchandising, marketing, and store operations for growth [25][26] Question: How are you addressing the marketing changes? - The company is focused on creating a refreshed marketing message to engage both new and lapsed customers, with early positive results [41][42] Question: What is the outlook for the branded strategy? - Management sees continued opportunity for growth in the ladies' business and believes the branded strategy will yield further improvements [48][50] Question: How are you managing tariff-related costs? - The company has successfully mitigated tariff impacts through strategic vendor partnerships and closeout opportunities, expecting negligible costs in the fourth quarter [34][82] Question: What is the status of self-checkout implementation? - Self-checkout has been rolled out to 80 stores, showing positive customer adoption and sales impacts, with plans for further expansion [78] Question: How is the home business performing? - The home business has shown sequential improvement, and management feels well-positioned for the holiday season despite previous weaknesses [112][113]

Financial Data and Key Metrics Changes - Total sales for the third quarter grew 10% to $5.6 billion, with comparable store sales increasing by 7% [5][6] - Earnings per share for the third quarter were $1.58 on net income of $512 million, compared to $1.48 per share on net earnings of $489 million in the prior year [6][7] - For the first nine months, earnings per share were $4.61 on net earnings of $1.5 billion, compared to $4.53 per share on net income of $1.5 billion for the same period last year [7] - Operating margin for the third quarter was 11.6%, which was stronger than expected [6][12] Business Line Data and Key Metrics Changes - Strongest merchandise areas in the third quarter included cosmetics, shoes, and ladies' apparel [8] - The branded strategy has positively impacted the ladies' business, which comped above the chain average [10][48] - Average store inventories were up 15% as the company advanced inventory build for the holiday season [8] Market Data and Key Metrics Changes - Broad-based strength was observed across geographic regions, with the Southeast and Midwest performing the best [8][37] - Hispanic stores showed solid comparable sales despite trailing the chain slightly [37] Company Strategy and Development Direction - The company has fully embedded its branded strategy into its merchandising approach, focusing on delivering high-quality branded bargains [9][10] - The company plans to close and/or relocate 10 locations in the fourth quarter, expecting to end the year with 1,903 Ross stores and 360 dd's locations [9] - The company is optimistic about its prospects for the fourth quarter, supported by strong merchandising plans and product assortments [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macro uncertainties and maintain a strong value proposition [11][16] - The company expects tariff-related costs in the fourth quarter to be negligible, with a full-year cost of approximately $0.15 per share [14] - Management highlighted the importance of maintaining a strong value gap against traditional retailers [63] Other Important Information - The company repurchased 1.7 million shares of common stock for an aggregate cost of $262 million, remaining on track to buy back a total of $1.05 billion in shares this year [13] - The company opened 36 new Ross and four dd's DISCOUNTS stores during the third quarter [8] Q&A Session Summary Question: Can you break down the inflection in same-store sales? - Management noted broad-based strength across all major merchandise categories and geographic regions, attributing some improvement to internal initiatives and favorable weather conditions [20][22] Question: What are the major drivers of the improvement in momentum? - Management credited the sophisticated merchandising team and emphasized the importance of marketing and store experience in driving traffic [25][26] Question: How are you addressing the marketing changes? - Management indicated that the refreshed marketing message has improved engagement with both new and lapsed customers, with early metrics showing positive results [41][42] Question: Can you discuss the branded strategy's impact? - Management stated that the branded strategy has significantly improved the ladies' business and expects continued growth opportunities in this area [48][50] Question: What is the outlook for merchandise margins? - Management expects merchandise margins to remain stable over time, with ongoing opportunities for improvement as vendor relationships strengthen [101][104] Question: How is the self-checkout rollout progressing? - Self-checkout is currently in 80 stores, showing lower shrink and high customer adoption, with plans for further rollout next year [78] Question: How did dd's perform compared to Ross? - dd's performance was consistent with Ross, with no significant pressure noted during the quarter [82]

Financial Data and Key Metrics Changes - Total sales for Q3 2025 grew 10% to $5.6 billion, with comparable store sales increasing 7% [3][4] - Earnings per share for the quarter were $1.58 on net income of $512 million, compared to $1.48 per share on net earnings of $489 million in the prior year [4] - For the first nine months, earnings per share were $4.61 on net earnings of $1.5 billion, compared to $4.53 per share on net income of $1.5 billion for the same period last year [4] - Operating margin for the quarter was 11.6%, which was stronger than expected [4][10] Business Line Data and Key Metrics Changes - Strongest merchandise areas in Q3 included cosmetics, shoes, and ladies' apparel [5] - The branded strategy has positively impacted the ladies' business, which comped above the chain average [8][48] Market Data and Key Metrics Changes - Broad-based strength was observed across geographic regions, with the Southeast and Midwest performing the best [5][19] - Hispanic stores showed solid comps despite trailing the chain slightly [37] Company Strategy and Development Direction - The company has fully embedded its branded strategy into its merchandising approach, focusing on delivering high-quality branded bargains [6][8] - Plans to close and/or relocate 10 locations in Q4, expecting to end the year with 1,903 Ross stores and 360 dd's locations [6] - The company aims to maintain a strong value proposition relative to traditional retailers while mitigating impacts on merchandise margins [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fourth quarter, raising comparable store sales forecast to 3-4% and earnings per share guidance for fiscal 2025 to $6.38-$6.46 [11][12] - The company expects tariff-related costs in Q4 to be negligible, with a full-year cost of approximately $0.15 per share [12] - Management acknowledged macro uncertainties but credited the team for executing well and navigating through challenges [20] Other Important Information - The company repurchased 1.7 million shares for an aggregate cost of $262 million, remaining on track to buy back a total of $1.05 billion in shares this year [11] - Total consolidated inventories were up 9% versus last year, with average store inventories up 15% [5] Q&A Session Summary Question: Can you break down the inflection in same-store sales? - Management noted broad-based strength across all major merchandise categories and geographic regions, attributing some improvement to internal initiatives and favorable weather conditions [19][20] Question: What are the major drivers of the improvement in momentum? - Management highlighted the sophistication of the merchandising team and the effectiveness of marketing and store teams in driving traffic and improving the in-store experience [24][25] Question: How is the branded strategy impacting the business? - The branded strategy has significantly improved the ladies' business, which has shown sequential improvement and is expected to continue driving growth [48][49] Question: What is the outlook for tariff costs? - Management expects tariff-related costs to be negligible in Q4 and has successfully mitigated impacts throughout the year [32][85] Question: How is the store experience being enhanced? - The company is refreshing stores to provide a modern look and feel, with positive customer feedback so far [60] Question: Are there plans for a loyalty program? - Currently, there is no active loyalty program, but the company has a decent email database and is exploring future marketing initiatives [122]

Core Viewpoint - Ross Stores has raised its annual profit forecast, indicating confidence in strong demand for discounted apparel and accessories ahead of the holiday season despite macroeconomic uncertainties [1] Company Summary - The company is betting on resilient consumer demand for its products, which include discounted apparel and accessories [1] Industry Summary - The announcement comes in the context of looming macroeconomic uncertainties, suggesting that the retail sector may be experiencing shifts in consumer behavior as the holiday season approaches [1]

The off-price retailer raised its guidance as same-store sales rose 7%, ahead of the 3.9% growth Wall Street anticipated. ...

Ross Stores, Inc. (NASDAQ:ROST) shares climbed after the company released its third-quarter earnings report after Thursday's closing bell, beating estimates on the top and bottom lines. Here's a look at the details in the report. ROST stock is moving. Watch the price action here.The Details: Ross Stores reported quarterly earnings of $1.58 per share, which beat the analyst estimate of $1.41.Quarterly revenue came in at $5.6 billion, which beat the analyst consensus estimate of $5.42 billion.Read Next: Nvidi ...

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Financial Performance - Earnings per share for Q3 2025 were $1.58, with net income of $512 million, compared to $1.48 and $489 million in Q3 2024, reflecting a 6.8% increase in EPS [4] - Sales for Q3 2025 increased by 10% to $5.6 billion, up from $5.1 billion in the prior year, with comparable store sales rising 7% [4] - For the first nine months of 2025, earnings per share were $4.61, compared to $4.53 in the same period of 2024, with net income remaining stable at $1.5 billion [5] - The operating margin for Q3 2025 was 11.6%, significantly stronger than expected, driven by effective expense control [6] - For Q4 2025, the company raised its comparable store sales forecast to 3% to 4%, with EPS guidance between $1.77 and $1.85 [8] - Full-year EPS guidance for fiscal 2025 is now projected to be between $6.38 and $6.46, including a $0.16 impact from tariff-related costs [8] Shareholder Actions - The company repurchased 1.7 million shares for $262 million during Q3 2025, part of a $2.1 billion buyback program [7] Asset and Store Growth - The total assets as of November 1, 2025, were $15.41 billion, an increase from $14.91 billion a year earlier [16] - The company operates 2,273 stores at the end of Q3 2025, up from 2,192 stores at the end of Q3 2024 [14] - The company reported a 3% increase in comparable store sales year-to-date for 2025 [5] Cash Flow and Expenses - Net cash provided by operating activities increased to $1,905,165 from $1,474,431 year-over-year [18] - Depreciation and amortization expenses rose to $374,524, compared to $329,584 in the previous year [18] - Cash used in investing activities was $618,366, up from $514,122 in the prior year [18] - Net cash used in financing activities increased to $1,955,126 from $1,481,092 year-over-year [18] - The company reported a decrease in cash, cash equivalents, and restricted cash to $4,128,135 from $4,414,658 [18] - Interest paid decreased to $55,778 from $80,316 in the previous year [18] - Income taxes paid, net, decreased to $442,751 from $546,113 year-over-year [18] - Merchandise inventory change was $(684,458), compared to $(666,886) in the prior year [18] - The company issued $18,910 in common stock related to stock plans, slightly up from $18,769 [18]

Core Insights - Ross Stores, Inc. is set to release its third-quarter earnings results, with analysts expecting earnings per share (EPS) of $1.42, a decrease from $1.48 in the same period last year [1] - The consensus estimate for quarterly revenue is $5.41 billion, an increase from $5.07 billion a year earlier [1] - The company reported better-than-expected second-quarter EPS results on August 21 [1] Stock Performance - Ross Stores shares increased by 0.3%, closing at $160.45 [2] Analyst Ratings - Telsey Advisory Group maintained a Market Perform rating with a price target of $160 [4] - TD Cowen raised its price target from $170 to $174 while maintaining a Buy rating [4] - UBS increased its price target from $147 to $163, maintaining a Neutral rating [4] - Wells Fargo raised its price target from $175 to $180, maintaining an Overweight rating [4] - Citigroup raised its price target from $146 to $171 while maintaining a Buy rating [4]