Ross Stores Inc
Q3 2025 Earnings
Includes approximately $0.05 per share negative impact from tariff-related costs in Q3 2025
Market Reaction
S&P 500 over the same 30 days: +4.76%.
Did ROST Beat Earnings? Q3 2025 Results
Ross Stores posted a standout third quarter, with GAAP diluted EPS of $1.58 beating the $1.42 consensus estimate by 10.90% and revenue of $5.60 billion topping expectations by 3.53%, up 10.4% from a year ago. The results arrived even as that per-share figure absorbed roughly $0.05 of tariff-related costs, and CEO Jim Conroy credited a compelling brand-name value assortment, a new marketing campaign that drove measurably higher customer engagement, and a strong back-to-school season that carried momentum through the full period, with comparable store sales climbing 7% and operating margin reaching 11.6%. The broad-based strength has since drawn a wave of upward analyst price-target revisions, reflecting growing conviction in the retailer's ongoing strategic transformation. Looking ahead, Ross raised its full-year fiscal 2025 EPS guidance to $6.38 to $6.46, inclusive of approximately $0.16 per share in cumulative tariff headwinds, and guided fourth-quarter EPS to $1.77 to $1.85 on comparable store sales growth of 3% to 4%, as the company heads into the holiday season with evident momentum.
- Comparable store sales increased 7% in Q3, an acceleration from prior quarter
- Compelling brand name value assortment resonated with shoppers
- New marketing campaign drove excitement and higher customer engagement
- Excellent back-to-school season with strong trends continuing through balance of quarter
- Broad-based sales growth across merchandise areas and geographical regions
- Operating margin of 11.6% significantly exceeded expectations
- Continued focus on expense control
“We are pleased with our third quarter sales results, which accelerated from the prior quarter. Our merchandise assortment of compelling brand name values resonated with shoppers, and our new marketing campaign drove excitement and higher customer engagement. We had an excellent back-to-school season with strong trends that continued through the balance of the quarter. The strong execution by the entire team led to broad-based sales growth across merchandise areas and geographical regions. The strength in top-line, coupled with our continued focus on expense control, resulted in an operating margin of 11.6% that was much stronger than expected.”
Ross Stores CEO, on the earnings call
Forward Guidance & Outlook
Ross Stores raised its full-year fiscal 2025 EPS guidance to $6.38–$6.46, inclusive of approximately $0.16 per share of tariff-related costs. For the fourth quarter (13 weeks ending January 31, 2026), comparable store sales are forecast to increase 3% to 4%, with EPS projected in the range of $1.77 to $1.85. Q4 guidance includes approximately $0.03 per share of unfavorable timing from packaway-related expenses that benefited Q3, while tariff-related costs are expected to be negligible. Management noted that the prior year Q4 and full-year EPS included an approximate $0.14 benefit from the sale of a packaway facility. The company remains on track to repurchase a total of $1.05 billion in common stock during fiscal 2025.
ROST YoY Financials
Figures from SEC filings and company reports. Not investment advice.