Ross (ROST) Gains 8% on Earnings Blowout, Upbeat Outlook

Core Viewpoint - Ross Stores, Inc. (NASDAQ: ROST) has demonstrated strong financial performance, with significant increases in net income and sales, leading to a positive outlook for the upcoming holiday season and full-year 2025 [1][2][4]. Financial Performance - Net income grew by 4.7% to $511.9 million from $488.8 million year-on-year [2]. - Sales increased by 10% to $5.6 billion from $5.07 billion year-on-year, with comparable store sales surging by 7% [2]. Market Reaction - The stock price of Ross Stores jumped 8.41% to close at $174, marking the fourth consecutive day of gains [1][3]. Management Commentary - CEO Jim Conroy expressed satisfaction with the third quarter sales results, highlighting the effectiveness of the merchandise assortment and a new marketing campaign [3]. - Conroy noted that the company is entering the holiday season with strong momentum and a compelling merchandise assortment [4]. Future Guidance - For the full-year period, Ross Stores raised its comparable sales forecast to a range of 3% to 4%, with earnings per share (EPS) projected between $1.77 and $1.85 [4]. - The updated guidance reflects an expected EPS of $6.38 to $6.46 for the full year, accounting for a $0.16 negative impact from tariff-related costs [5].