Ross Stores (ROST) ROST Financial Results Summary
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Ross Stores (ROST) Q3 2025 Financial Results Summary
Dublin, California, November 20, 2025 – Ross Stores, Inc. (Nasdaq: ROST) today reported its financial results for the third quarter of fiscal 2025, encompassing the 13 weeks ended November 1, 2025.
Key Financial Highlights
- Earnings Per Share (EPS):
- Q3 2025: $1.58 (diluted)
- Q3 2024: $1.48 (diluted)
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Change: +6.8% year-over-year.
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Net Income:
- Q3 2025: $512 million
- Q3 2024: $489 million
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Change: +4.7% year-over-year.
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Sales:
- Q3 2025: $5.6 billion
- Q3 2024: $5.1 billion
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Change: +10% year-over-year.
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Comparable Store Sales:
- Q3 2025: +7%
- Q3 2024: Not specified.
Year-to-Date Performance
- EPS (Year-to-Date):
- Nine Months Ended November 1, 2025: $4.61 (diluted)
- Nine Months Ended November 2, 2024: $4.53 (diluted)
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Change: +1.8% year-over-year.
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Net Income (Year-to-Date):
- Nine Months Ended November 1, 2025: $1.5 billion
- Nine Months Ended November 2, 2024: $1.5 billion
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Change: No change in net income.
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Sales (Year-to-Date):
- Nine Months Ended November 1, 2025: $16.1 billion
- Nine Months Ended November 2, 2024: $15.2 billion
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Change: +5.9% year-over-year.
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Comparable Store Sales (Year-to-Date):
- Up by 3% over the prior year.
Margins and Expenses
- Operating Margin:
- Q3 2025: 11.6%
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Significantly stronger than expected.
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Tariff-Related Costs:
- Q3 2025 had an approximate negative impact of $0.05 per share.
- Year-to-date impact: Approximately $0.16 per share.
Shareholder Actions
- Share Repurchase:
- In Q3 2025, Ross repurchased 1.7 million shares for an aggregate price of $262 million under an ongoing two-year $2.1 billion share buyback authorization.
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Total planned buyback for fiscal 2025: $1.05 billion.
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Dividends:
- Dividends paid during Q3 2025: $397.2 million, compared to $367.5 million in Q3 2024.
- Change: +8% year-over-year.
Fiscal 2025 Guidance
- Updated Sales Forecast:
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For the 13 weeks ending January 31, 2026, comparable store sales are anticipated to be up 3% to 4%.
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Earnings Per Share Guidance:
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Updated expectations range for Q4 2025: $1.77 to $1.85, reflecting approximately $0.03 of unfavorable timing on packaway-related expenses.
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Full-Year EPS Guidance:
- Increased forecast for fiscal 2025 to range between $6.38 to $6.46, including the previously mentioned tariff-related costs.
Comments from Management
Jim Conroy, Chief Executive Officer, remarked on the positive sales results and the company’s ability to resonate with shoppers through compelling merchandise and effective marketing. The successful back-to-school season and continued trends through the quarter contributed to this performance.
The company remains optimistic going into the holiday season, leveraging strong advertising and supply chain readiness.
Conclusion
In summary, Ross Stores, Inc. has demonstrated solid growth in Q3 2025, exceeding earnings expectations while managing expenses effectively. The company continues to focus on shareholder returns through both share repurchases and dividends, reinforcing its commitment to creating value for investors.
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |
| Sales | $5,600,946 | $5,071,354 | $16,115,069 | $15,216,940 |
| Costs and Expenses | ||||
| Cost of goods sold | 4,032,446 | 3,634,283 | 11,615,979 | 10,916,884 |
| Selling, general and administrative | 920,002 | 832,855 | 2,605,848 | 2,445,494 |
| Operating income | 648,498 | 604,216 | 1,893,242 | 1,854,562 |
| Interest income, net | -33,900 | -42,527 | -100,655 | -131,827 |
| Earnings before taxes | 682,398 | 646,743 | 1,993,897 | 1,986,389 |
| Provision for taxes on earnings | 170,463 | 157,935 | 494,718 | 482,443 |
| Net earnings | $511,935 | $488,808 | $1,499,179 | $1,503,946 |
| Earnings per share | ||||
| Basic | $1.59 | $1.49 | $4.64 | $4.56 |
| Diluted | $1.58 | $1.48 | $4.61 | $4.53 |
| Weighted-average shares outstanding | ||||
| Basic | 321,270 | 327,710 | 323,049 | 329,453 |
| Diluted | 323,297 | 329,937 | 325,054 | 331,728 |
| Store count at end of period | 2,273 | 2,192 | 2,273 | 2,192 |
| Assets | ||
|---|---|---|
| Current Assets | November 1, 2025 | November 2, 2024 |
| Cash and cash equivalents | $4,061,173 | $4,349,262 |
| Accounts receivable | 203,891 | 176,218 |
| Merchandise inventory | 3,128,971 | 2,859,106 |
| Prepaid expenses and other | 235,617 | 241,703 |
| Total current assets | 7,629,652 | 7,626,289 |
| Property and equipment, net | 3,987,247 | 3,657,679 |
| Operating lease assets | 3,498,077 | 3,349,427 |
| Other long-term assets | 299,990 | 271,791 |
| Total assets | $15,414,966 | $14,905,186 |
| Liabilities and Stockholders’ Equity | ||
| Current Liabilities | ||
| Accounts payable | $2,645,234 | $2,346,479 |
| Accrued expenses and other | 689,539 | 637,332 |
| Current operating lease liabilities | 723,512 | 699,200 |
| Accrued payroll and benefits | 438,989 | 459,094 |
| Income taxes payable | 23,080 | 2,186 |
| Current portion of long-term debt | 499,432 | 699,407 |
| Total current liabilities | 5,019,786 | 4,843,698 |
| Long-term debt | 1,017,540 | 1,514,452 |
| Non-current operating lease liabilities | 2,948,105 | 2,821,417 |
| Other long-term liabilities | 295,257 | 265,673 |
| Deferred income taxes | 250,276 | 196,583 |
| Commitments and contingencies | ||
| Stockholders’ Equity | 5,884,002 | 5,263,363 |
| Total liabilities and stockholders’ equity | $15,414,966 | $14,905,186 |