Ross Stores(US:ROST) ZACKS·2026-01-07 18:05Core Insights - Ross Stores, Inc. (ROST) reported a strong third-quarter fiscal 2025 performance with a 7% increase in comparable store sales and a 10% rise in total revenues to approximately $5.6 billion, significantly exceeding consensus estimates [1][9] - The company achieved earnings per share (EPS) of $1.58, up from $1.48 a year ago, indicating the resilience of its operating model [1] Sales Performance - The growth in comparable store sales was broad-based, with cosmetics, shoes, and ladies' apparel leading the performance, reflecting effective merchandising and the appeal of Ross Stores' value proposition in an inflation-aware environment [2] - The ladies' segment, previously a laggard, showed accelerated growth above the chain average during the fiscal third quarter [2] Expansion and Future Guidance - Ross Stores continued its expansion by opening 90 net new stores, including Ross and dd's DISCOUNTS, to capture existing and new market demand [3] - The company raised its guidance for fiscal fourth-quarter comparable store sales to 3-4% and indicated positive trends in inventory builds ahead of the holiday season [3] Strategic Outlook - As Ross Stores enters the critical holiday season, the company is positioned with strong traffic, healthy inventory levels, and a refined branded strategy, which may help sustain momentum despite potential macroeconomic challenges [4] - The off-price retail model historically performs well in value-seeking environments, suggesting that Ross Stores may continue to outperform its peers [4] Stock Performance - Ross Stores' shares have gained 23.4% over the past three months, outperforming the industry average increase of 4.9% [5] - The stock currently trades at a forward 12-month P/E ratio of 26.61X, which is lower than the industry average of 29.92X, indicating a modest discount relative to peers and the broader consumer staples sector [10]