Ross Stores Inc (NASDAQ:ROST) stock rose 7.57% (As on November 21, 11:52:37 AM UTC-4, Source: Google Finance) after the company posted third-quarter results that topped Wall Street expectations and raised its full-year outlook. The company was buoyed by robust comparable sales growth and disciplined expense control, reinforcing investor confidence ahead of the holiday season. Operating margin expanded to 11.6%, bolstered by top-line strength and cost efficiencies, despite an estimated $0.05 per share negative impact from tariff-related costs this quarter. Net income rose to $512 million, up from $489 million in the prior-year period. Ross Stores ended the quarter with 2,273 locations, including growth under its Ross Dress for Less and dd’s DISCOUNTS banners, up from 2,192 stores a year ago. The company repurchased 1.7 million shares in the third quarter for $262 million, remaining on track to complete a $2.1 billion buyback program by year-end. Looking into the crucial fourth quarter, the company sees EPS in the range of $1.77 to $1.85, higher than analyst expectations of $1.80 at the midpoint, and lifted its holiday-season comparable store sales forecast to 3% to 4%.

ROST in the third quarter of FY25 has reported the adjusted earnings per share of $1.58, beating the analysts’ estimates for the adjusted earnings per share of $1.41. The company had reported the adjusted revenue growth of 10 percent to $5.6 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $5.42 billion. This is driven by a 7% increase in comparable store sales. Sales for the year-to-date period grew to $16.1 billion with comparable store sales up 3% over last year. For the third quarter at Ross Stores, Inc., cosmetics, shoes, and ladies were the strongest merchandise areas. By geography, the company saw broad-based strength with the Southeast and the Midwest performing the best. BD’s discounts, strong value, and fashion offerings continue to resonate with shoppers, and delivered comp gains relatively similar to Ross Stores, Inc. for the period. At quarter end, total consolidated inventories were up 9% versus last year, and average store inventories were up 15% as the company advanced the inventory build for the holiday season into October.

Ross Stores now expects full-year 2025 EPS between $6.38 and $6.46, compared with $6.32 last year, despite an approximate $0.16 per share hit from tariffs.

For the 13 weeks ending January 31, 2026, the company is raising the comparable store sales forecast to be up 3% to 4% with earnings per share in the range of $1.77 to $1.85. This updated guidance range reflects approximately $0.03 earnings per share of unfavorable timing of packaway-related expenses that benefited the third quarter.