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Ross Stores' Q3 Comps Surge: Can Momentum Carry Into FY26?
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Key Takeaways
Ross Stores posted a 7% Q3 comp increase, 10% revenue growth to about $5.6B and EPS of $1.58.
ROST saw broad-based comp strength led by cosmetics, shoes and ladies' apparel as its value mix shoppers.
Ross Stores finished 90 net store openings and raised Q4 comp guidance to 3-4% alongside inventory builds.
Ross Stores, Inc. (ROST - Free Report) delivered a standout third-quarter fiscal 2025 performance, posting a 7% increase in comparable store sales (comps) on top of a 10% rise in total revenues to about $5.6 billion. This comps growth marked one of the strongest quarterly results in recent years and significantly beat consensus estimates, highlighting robust demand in the off-price retail space and strong consumer engagement with Ross Stores’ merchandise mix. The company also reported earnings per share (EPS) of $1.58, beating analyst forecasts and rising from $1.48 a year ago, underscoring the resilience of its operating model.
The comps strength was broad-based across key categories, with cosmetics, shoes and ladies’ apparel leading the charge, reflecting both effective merchandising and the appeal of Ross Stores’ value proposition in an inflation-aware environment. Management emphasized that its focus on high-quality branded products at compelling prices helped attract a wider shopper base and deepen engagement throughout the quarter. This shift was particularly notable in the ladies’ segment, which had been a relative laggard in prior periods but accelerated above the chain average in the fiscal third quarter.
Ross Stores continued to expand its footprint, opening new locations while also strengthening store operations and marketing efforts. The company completed its targeted expansion program for fiscal 2025 with 90 net store openings, including Ross and dd’s DISCOUNTS stores, positioning it to capture both existing and new market demand. At the same time, inventory builds ahead of the holiday selling season and raised guidance for fiscal fourth-quarter comps of 3-4% and fiscal 2025 EPS suggest management expects the positive trends to persist even as macroeconomic conditions remain dynamic.
Looking into fiscal 2026, the key question for investors and industry watchers is whether Ross can sustain this momentum. The company enters a critical holiday season with strong traffic, healthy inventory positions and a refined branded strategy that has already shown results. While broader economic factors such as consumer spending patterns and supply-chain headwinds could affect growth, Ross Stores’ fiscal third-quarter comps performance provides a strong baseline and strategic confidence that its off-price model, which historically performs well in value-seeking environments, may continue to outperform peers.
ROST’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 23.4% in the past three months, outperforming the industry’s rise of 4.9%.
ROST Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is ROST a Value Play Stock?
ROST currently trades at a forward 12-month P/E ratio of 26.61X, which is lower than the industry average of 29.92X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 450% and 7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.
American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings implies a decline of 23.6%, while the same for sales suggests growth of 2.4% from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.
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Ross Stores' Q3 Comps Surge: Can Momentum Carry Into FY26?
Key Takeaways
Ross Stores, Inc. (ROST - Free Report) delivered a standout third-quarter fiscal 2025 performance, posting a 7% increase in comparable store sales (comps) on top of a 10% rise in total revenues to about $5.6 billion. This comps growth marked one of the strongest quarterly results in recent years and significantly beat consensus estimates, highlighting robust demand in the off-price retail space and strong consumer engagement with Ross Stores’ merchandise mix. The company also reported earnings per share (EPS) of $1.58, beating analyst forecasts and rising from $1.48 a year ago, underscoring the resilience of its operating model.
The comps strength was broad-based across key categories, with cosmetics, shoes and ladies’ apparel leading the charge, reflecting both effective merchandising and the appeal of Ross Stores’ value proposition in an inflation-aware environment. Management emphasized that its focus on high-quality branded products at compelling prices helped attract a wider shopper base and deepen engagement throughout the quarter. This shift was particularly notable in the ladies’ segment, which had been a relative laggard in prior periods but accelerated above the chain average in the fiscal third quarter.
Ross Stores continued to expand its footprint, opening new locations while also strengthening store operations and marketing efforts. The company completed its targeted expansion program for fiscal 2025 with 90 net store openings, including Ross and dd’s DISCOUNTS stores, positioning it to capture both existing and new market demand. At the same time, inventory builds ahead of the holiday selling season and raised guidance for fiscal fourth-quarter comps of 3-4% and fiscal 2025 EPS suggest management expects the positive trends to persist even as macroeconomic conditions remain dynamic.
Looking into fiscal 2026, the key question for investors and industry watchers is whether Ross can sustain this momentum. The company enters a critical holiday season with strong traffic, healthy inventory positions and a refined branded strategy that has already shown results. While broader economic factors such as consumer spending patterns and supply-chain headwinds could affect growth, Ross Stores’ fiscal third-quarter comps performance provides a strong baseline and strategic confidence that its off-price model, which historically performs well in value-seeking environments, may continue to outperform peers.
ROST’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 23.4% in the past three months, outperforming the industry’s rise of 4.9%.
ROST Stock's Past Three-Month Performance
Image Source: Zacks Investment Research
Is ROST a Value Play Stock?
ROST currently trades at a forward 12-month P/E ratio of 26.61X, which is lower than the industry average of 29.92X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
ROST P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks are FIGS Inc. (FIGS - Free Report) , American Eagle Outfitters Inc. (AEO - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) .
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 450% and 7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.
American Eagle is a specialty retailer of casual apparel, accessories and footwear. It sports a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings implies a decline of 23.6%, while the same for sales suggests growth of 2.4% from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 35.1%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.