Key Takeaways
- Ross Stores shares surged to an all-time high Friday after the off-price retailer posted better-than-expected earnings as bargain-hunting shoppers flocked to its stores.
- The retailer also boosted its outlook, pointing to momentum going into the holiday shopping season.
Ross Stores (ROST) shares jumped to an all-time high Friday after the off-price retailer became the latest to say it’s seeing sales surge as shoppers search for deals.
The stock was up nearly 8% over $173 in recent trading, leaving it on track to close at a record high. (Read our daily markets coverage here.)
Ross Stores posted third-quarter earnings per share of $1.58, beating the consensus of analysts surveyed by Visible Alpha by 18 cents. Revenue rose 10.4% year-over-year to $5.6 billion, also ahead of forecasts. Comparable store sales jumped 7%.
Why This News Is Significant
Ross Stores is benefiting from a broader shift in favor of bargain-seeking behavior from consumers, echoing strong results from other off-price retailers this week.
CEO Jim Conroy said the company had an “excellent” back-to-school season, and believes its “assortment of compelling brand name values resonated with shoppers,” with strong growth across major categories of merchandise, according to a transcript provided by AlphaSense.
“It is clear the consumer is prioritizing value and our updated assortment is driving stronger customer engagement,” Conroy said.
Conroy said Ross Stores is “optimistic” about the holiday season, and the retailer raised its comparable store sales forecast for the fourth quarter to 3% to 4% growth, with earnings per share in the range of $1.77 to $1.85. Ross Stores said it now sees full-year EPS of $6.38 to $6.46, up from its previous estimate of $6.08 to $6.21.
Just a few days ago, rival TJX (TJX), which operates TJ Maxx, Marshalls, and Home Goods stores, also posted strong results and boosted its outlook, citing growth driven by value-conscious shoppers.
With Friday’s gains, shares of Ross Stores have climbed close to 15% year-to-date. TJX shares, which were 3% higher Friday afternoon, have added about one-quarter of their value in 2025.