Ross Stores said on Thursday it is lifting its full-year outlook for comparable-store sales and earnings, citing resilient demand for discounted apparel and accessories even as economic uncertainty persists. The company’s shares climbed about 6% in extended trading following the update.
Management pointed to stronger storefront traffic across diverse customer segments. "We saw a healthy increase in customer count on a comparable-store basis across income levels, ethnicities, and age groups, including younger customers," CEO Jim Conroy said on the company’s earnings call. That broad-based increase in shopper counts underpinned the company’s decision to raise guidance.
Ross now expects same-store sales for the year to increase 6% to 7%, an upward revision from its earlier forecast of 3% to 4% growth. The company also raised its projected annual earnings per share to a range of $7.50 to $7.74, up from a prior outlook of $7.02 to $7.36.
For the quarter ended May 2, Ross reported a 17% increase in comparable-store sales. The company noted that comparable sales were muted in the same period a year earlier, which is part of the year-over-year context for the reported gain. Quarterly profit came in at $2.02 per share, topping consensus estimates of $1.73 per share, based on data compiled by LSEG.
The earnings release also highlighted a sector-wide pattern: rival off-price retailer TJX raised its annual comparable sales and profit forecasts earlier in the week, reflecting similar demand trends for value-oriented offerings.
Taken together, Ross’s results and guidance revision underscore continued consumer appetite for discounted clothing and accessories. Management emphasized broad demographic engagement, calling out increases in foot traffic across income brackets, ethnic groups and age cohorts. Investors responded positively to the outlook and the quarterly beat.
At the same time, the company framed results against an economic backdrop that remains uncertain. The firm and peers in the off-price segment cited continued appeal to budget-conscious shoppers as inflationary pressures influence household spending patterns.