Key Stats for Ross Stores Stock
- Price Change for Ross Stores stock: 8.4%
- $ROST Share Price as of Nov. 21: $174
- 52-Week High: $175
- $ROST Stock Price Target: $169
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What Happened?
Ross Stores (ROST) stock jumped over 8% after the off-price retailer crushed Wall Street expectations with its third-quarter results. It posted earnings of $1.58 per share on revenue of $5.60 billion, easily beating analyst estimates of $1.41 per share on revenue of $5.41 billion.
The real story was the massive acceleration in comparable store sales, which surged 7% during the quarter.
That’s more than double the growth rate from earlier in the year and represents the strongest quarterly comp performance in over four years, excluding pandemic-related spikes. Meanwhile, analysts had only expected comp growth of around 3.1%.
CEO Jim Conroy said the company delivered an “excellent back-to-school season with strong trends that continued through the balance of the quarter.”
The momentum was broad-based, with strength across all major merchandise categories and geographic regions. Cosmetics, shoes, and ladies’ apparel were the top performers, while the Southeast and Midwest regions led the way geographically.
Conroy credited the company’s “branded strategy,” which focuses on delivering high-quality branded merchandise at compelling values.
This strategy has been particularly effective in the ladies’ business, which had been a drag on comps in prior quarters but accelerated to above the chain average in the third quarter.
The increased emphasis on brands has also strengthened vendor partnerships and created more closeout opportunities.
Under Conroy’s leadership, Ross has refreshed its marketing campaigns with more contemporary creative that’s resonating with younger customers.
The company hasn’t increased marketing spend as a percentage of sales, but has modernized its approach to drive greater engagement. Customer traffic, units per transaction, and average unit retail all increased during the quarter.
On tariffs, Ross absorbed an estimated $0.05 per share impact in the third quarter and expects the fourth-quarter impact to be negligible.
Management said the merchant teams have done a tremendous job balancing cost concessions with modest price increases while maintaining Ross’s value proposition.
With strong product availability in the marketplace, the company has been able to secure opportunistic buys that position it favorably for the holiday.
Management raised its fourth quarter comparable sales guidance to 3% to 4%, well above the typical 2% to 3% range the company has historically guided to.
Full-year earnings per share guidance increased to $6.38 to $6.46, up from prior expectations.
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What the Market Is Telling Us About ROST Stock
The market’s strong response shows confidence in Ross’s merchandising execution and momentum heading into the critical holiday season.
While many retailers are calling out cautious consumers and macro headwinds, ROST stock rallied on evidence that value-focused retailers with the right product mix can still win.
Investors are clearly encouraged by several factors.
- First, the sequential improvement in the ladies business suggests the branded strategy is gaining traction.
- Second, the ability to offset tariff impacts through better buying and selective pricing demonstrates operational excellence.
- Third, the raised guidance signals management’s confidence that momentum will continue.
The company is also making progress on store experience improvements, rolling out refreshed signage and cosmetic upgrades to about half the chain.
Self-checkout is expanding to more high-volume stores after testing showed lower shrink and higher customer adoption.
With 90 new store openings in 2025 and promising early results in new markets like the New York metro area, ROST stock looks positioned for continued growth as the company executes on its turnaround playbook.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
