Ross Stores Inc Earnings
Ross Stores Inc. continues to exhibit strong financial performance as it reported its earnings for the third quarter ended November 1, 2025. During this period, the company achieved earnings per share (EPS) of $1.58, translating to a net income of $512 million. This represents a positive trajectory from an EPS of $1.48 and a net income of $489 million for the same quarter in 2024. Despite an approximate $0.05 per share negative impact stemming from tariff-related costs, the company managed to bolster its financial results, buoyed by a significant increase in sales.
Ross Stores Inc Results
Below is a table highlighting Ross Stores’ key financial metrics. This provides a clear comparison of current performance against both the previous year's results and earlier quarters.
| Metric | Q3 2025 | Q3 2024 | Change (%) |
|---|---|---|---|
| Earnings per Share (EPS) | $1.58 | $1.48 | +6.8% |
| Net Income | $512 million | $489 million | +4.7% |
| Total Revenue | $5.6 billion | $5.1 billion | +10% |
| Comparable Store Sales Growth | +7% | N/A | N/A |
In addition, for the first nine months of 2025, the company's earnings per share stood at $4.61, while net earnings were $1.5 billion. This compares favorably to an EPS of $4.53 during the same period in the previous year.
Revenue Breakdown
To gain a deeper understanding of which segments contributed to Ross Stores' revenue growth, let's examine the revenue breakdown:
| Segment | Revenue ($) Q3 2025 | Revenue ($) Q3 2024 | Change (%) |
|---|---|---|---|
| Total Company Revenue | $5.6 billion | $5.1 billion | +10% |
Ross Stores demonstrated solid growth across various segments with a 10% increase in total revenue. This robust performance was partly driven by a 7% upsurge in comparable store sales. The strategic merchandise assortment and new marketing campaigns energized customer engagement, resulting in a successful back-to-school season and sustained sales trends throughout the quarter.
Key Developments
Ross Stores highlighted several key developments during the quarter: - The introduction of a new marketing campaign that significantly boosted customer engagement and drove sales growth. - The execution of a strategic merchandise assortment, offering compelling brand name values resonating well with shoppers. - The successful management of operating expenses led to an operating margin of 11.6%, surpassing expectations.
These factors have collectively contributed to the overall strengthened financial results of Ross Stores in this quarter.
Comments from Company Officers
Jim Conroy, CEO of Ross Stores, expressed satisfaction with the company's third-quarter performance and emphasized the effectiveness of their merchandising strategies. He noted the positive customer response to their offerings and highlighted the company's success in maintaining cost controls. Mr. Conroy stated, "The strong execution by the entire team led to broad-based sales growth across merchandise areas and geographical regions."
Reflecting the company's positive market outlook, Mr. Conroy expressed optimism for the holiday season, supported by a compelling merchandise assortment, an enthusiastic promotional campaign, and well-positioned store and supply chain operations.
Dividends and Share Repurchases
Ross Stores continued to focus on shareholder returns through its share repurchase program. During the third quarter of fiscal 2025, the company repurchased 1.7 million shares of common stock for a total of $262 million. This buyback is part of a broader two-year $2.1 billion authorization plan approved by the Board of Directors in March 2024. The company aims to repurchase $1.05 billion in common stock during fiscal 2025.
Ross Stores Inc Stock Forecast
Based on the analysis derived from strong financial performance, key business developments, and a positive outlook, Ross Stores' stock is poised to perform confidently in the upcoming quarters. While global economic challenges, such as tariff-related costs, may introduce some uncertainties, the company's proactive management strategies could mitigate potential risks.
Stock Price High Projection: Given the robust financial metrics and operational prowess, Ross Stores' stock price could reach up to $135 per share in the next 12 months.
Stock Price Low Projection: Taking potential market volatilities into account, a conservative estimate places the stock price at around $110 per share.
As Ross Stores continues to execute its strategy of providing quality, branded merchandise at competitive prices, coupled with effective cost controls and dynamic marketing, the company stands in good stead to enhance shareholder value and capitalize on consumer trends. This optimism is further bolstered by negligible expected tariff-related costs for the fourth quarter and into fiscal 2026.
In conclusion, Ross Stores Inc. has demonstrated commendable financial performance in the third quarter of 2025, driven by strategic focus on merchandising, marketing, and operational efficiency. With a solid track of achieving strong results, the company is well-positioned for the holiday season and beyond, potentially delivering further value to its shareholders.
