Ross Stores Q3 sales beat expectations

Overview

• Ross Stores Q3 sales grew 10% yr/yr, beating analysts' expectations

• Earnings per share for Q3 increased to $1.58 despite tariff-related costs

• Company repurchased 1.7 mln shares for $262 mln in Q3

Outlook

• Ross Stores raises Q4 comparable store sales forecast to 3%-4%

• Company expects Q4 EPS between $1.77 and $1.85

• Ross Stores increases FY 2025 EPS guidance to $6.38-$6.46

Result Drivers

• STRONG SALES GROWTH - Ross Stores attributes 10% sales growth to successful back-to-school season and effective marketing campaigns

• OPERATING MARGIN IMPROVEMENT - Focus on expense control led to stronger-than-expected operating margin of 11.6%

• TARIFF COST IMPACT - Q3 earnings per share included a $0.05 negative impact from tariff-related costs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Ross Stores Inc is $170.50, about 5.9% above its November 19 closing price of $160.45

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw1tmYxNa

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