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Ross Stores (ROST) is moving higher today, reaching a new all-time high, after reporting its Q3 (Oct) results last night. It comfortably beat EPS expectations, its largest beat in seven quarters, while revenue also came in above expectations, rising 10.4% to $5.6 bln, its strongest growth in seven quarters. Additionally, after providing Q4 guidance in the previous quarter, it raised its EPS outlook to $1.77-1.85 ($1.74-1.81 prior), comp sales to +3-4% from +2-3%, and expects sales growth of 6-8%, in line with expectations.

• Comps accelerated to +7% from +2% in Q2, well above the +2-3% guide, driven by both higher transactions and larger basket size.
• Strength was broad-based across regions and income cohorts, with cosmetics, shoes, and ladies leading the way. dd's DISCOUNTS also saw similar comps, and the home category showed a meaningful improvement from Q2.
• Expense control, including lower domestic freight, favorable occupancy costs, and less tariff-related processing pressure, helped lift operating margin to 11.6%, ahead of expectations. The tariff impact on Q3 EPS was $0.05, also better than expected.
• Management called out an exceptional back-to-school season, with momentum carrying into the holidays, supported by compelling branded assortments, ample closeout availability, and refreshed marketing that is boosting traffic and engagement.

Briefing.com Analyst Insight

This was an impressive quarter for ROST, highlighted by a sharp acceleration in comps to +7%, echoing the strong beat posted by peer TJX (TJX). Value offerings, refreshed marketing, and an exceptionally strong back-to-school season highlight how well Ross' assortments are resonating with consumers in a still-uneven macro environment. The tariff impact was better than expected in Q3 and is expected to be negligible in Q4, helping support profitability. With raised Q4 guidance for both comps and EPS and continued value-seeking consumer behavior, ROST is well positioned into holiday, and the strong results are helping drive the stock to new all-time highs.