Ross Stores lifts FY2025 outlook on strong Q3 earnings, sales

Core Insights - Ross Stores reported a 10% increase in Q3 sales to $5.6 billion, up from $5.1 billion in the same quarter last year, with comparable store sales rising 7% [1] - The growth was attributed to a brand-focused merchandise assortment and a new marketing campaign that enhanced customer engagement [1][2] Q3 Performance - For the 13 weeks ending 1 November 2025, diluted earnings per share (EPS) were $1.58, with net earnings of $511.9 million, compared to EPS of $1.48 and net earnings of $488.8 million in the prior year [3] - The results included an approximate $0.05 per share negative impact from tariff-related costs [3] Year-to-Date Performance - In the first nine months of FY25, Ross Stores reported EPS of $4.61 and net income of $1.5 billion, compared to EPS of $4.53 and net income of $1.5 billion in the same period of FY24 [4] - Sales for the first nine months were $16.1 billion, with comparable store sales up 3% year-over-year [4] Q4 Outlook - For Q4, the company expects comparable store sales to rise 3% to 4%, with EPS projected between $1.77 and $1.85 for the 13 weeks ending 31 January 2026 [5] - The Q4 earnings range reflects about $0.03 per share of unfavorable timing of packaway-related expenses [5] FY25 Guidance - Ross Stores raised its EPS guidance for FY25 to a range of $6.38 to $6.46, considering year-to-date results and the updated Q4 forecast [6] - The updated annual outlook includes an estimated $0.16 per share negative impact from tariff-related costs, which are expected to be negligible in Q4 [6] Holiday Season Prospects - The company expressed optimism for the holiday season, focusing on delivering quality branded merchandise at exceptional value [7]