Ross Stores Inc (NASDAQ:ROST) stock rose 7.38% (As on March 4, 11:28:55 AM UTC-4, Source: Google Finance) after the company issued a full-year outlook higher than the prior year’s results and reported a better-than-expected fiscal fourth quarter. Comparable store sales rose 9%, better than the market’s forecast for a gain of 5.1%, buoyed primarily by an increase in transactions and customers with a modest increase in baskets. The company saw broad-based strength while every major merchandise category showed solid positive sales growth. The company is planning to open 110 new locations this year, which represents 5% growth. Part of that growth reflects the re-acceleration of dd’s DISCOUNTS, with plans to open 25 stores in 2026. The company remain confident in the long-term potential to grow Ross and dd’s chains to 2,900 and 700 stores, respectively.

ROST in the fourth quarter of FY25 has reported the adjusted earnings per share of $2, beating the analysts’ estimates for the adjusted earnings per share of $1.88, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 12 percent to $6.64 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $6.4 billion. Fourth quarter 2025 operating margin was 12.3% compared to last year’s 12.4%, which included 105 basis point benefit from the sale of a packaway facility.

The company anticipates earnings to be in a range of $7.02 to $7.36 per share for fiscal 2026, while the current consensus on FactSet is for $7.29. In fiscal 2025, EPS rose to $6.61 from $6.32 last year.

Sales are pegged to grow by 5% to 7% for the ongoing fiscal year, while same-store sales are projected to advance by 3% to 4%. The Street is looking for sales of $24.06 billion and same-store sales to increase by 4%.  In the prior fiscal year, sales improved 8% to $22.75 billion, while comparable store sales inclined 5%. Earlier on Tuesday, Target (TGT) issued an upbeat full-year earnings outlook at the midpoint and reported an unexpected year-over-year increase in its fiscal fourth-quarter bottom-line.

For the current quarter, the discount retailer expects EPS to come in between $1.60 and $1.67 and sales to grow by 10% to 12%, Sheehan said on the call. The Street is looking for EPS of $1.67 and sales of $5.45 billion. Comparable store sales are anticipated to increase by 7% to 8%, while the current average analyst estimate on FactSet is for growth of 6.2%.