What is the market's earnings forecast for Ross Stores next quarter?

Did Ross Stores beat or miss consensus estimates last quarter?

What were the key takeaways from Ross Stores's earnings call?

What does Ross Stores do and what are its main business segments?

What factors drove the changes in Ross Stores's revenue and profit?

What is Ross Stores's latest dividend and current dividend yield?

What were the key takeaways from Ross Stores’s earnings call?

What guidance did Ross Stores's management provide for the next earnings period?

- **Revenue Growth**: Q3 sales up 10% to $5.6B, with 7% comp store growth driven by cosmetics, shoes, and ladies apparel.
- **Tariff Mitigation**: Q4 tariff impact negligible, with 2025 full-year cost of $0.16 per share.
- **Holiday Guidance**: Raised Q4 EPS to $1.77-$1.85 (3%-4% comp growth) and full-year to $6.38-$6.46.
- **Store Expansion**: 90 new stores opened in 2025, with Northeast expansion successful. dd's growth to accelerate.
- **Branded Strategy**: Ladies business outperformed chain, with sequential improvement across categories.
- **Marketing Success**: New campaigns reengaged customers, with no increase in marketing spend as a percentage of sales.

**【CEO Summary Section】**
- Q3 2025 total sales grew 10% to $5.6 billion, with comparable store sales up 7%, driven by strong performance in cosmetics, shoes, and ladies categories.
- Tariff-related costs impacted EPS by $0.05 in Q3, but fourth-quarter tariff costs are expected to be negligible.
- Holiday season inventory is well-positioned, with 36% of total inventories in packaway merchandise.
- 36 new Ross stores and 4 dd's DISCOUNTS stores opened in Q3, with strong performance in new markets like New York Metro.
- Branded strategy has accelerated sales, particularly in ladies apparel, with sequential improvement across categories.

**【CFO Financial Commentary】**
- Q3 2025 EPS was $1.58 on net income of $512 million, compared to $1.48 in the prior year. Year-to-date EPS was $4.61.
- Operating margin was 11.6%, impacted by tariffs and distribution costs, but improved through cost control.
- Fourth-quarter guidance raised to EPS of $1.77-$1.85, reflecting 3%-4% comparable store sales growth and holiday momentum.
- Full-year 2025 EPS guidance updated to $6.38-$6.46, up from previous range.

**【Q&A Highlights】**
- **Sales Acceleration Drivers**: CEO attributes 7% comp growth to broad-based merchandise strength, marketing campaigns, and store execution. Tariffs and macro uncertainty were partially offset by strategic pricing and vendor partnerships.
- **Marketing Effectiveness**: New campaigns and refreshed branding have reengaged customers, with early success in TikTok and Meta analytics. Marketing spend as a percentage of sales remains unchanged.
- **Inventory Management**: Q3 ended with 15% average store inventory growth, positioning for holiday. Tariff-related costs in Q4 are expected to be negligible.
- **Store Expansion**: Northeast expansion is successful, with New York Metro stores outperforming expectations. dd's DISCOUNTS growth will accelerate in 2026.
- **Tariff Mitigation**: Merchant teams secured cost concessions and closeouts, offsetting tariff impacts. 2026 pricing stability expected if tariffs remain unchanged.
- **Ladies Business Growth**: Branded strategy drove ladies comp growth above chain average, with potential for continued outperformance.

**【Key Initiatives】**
- Self-checkout rolled out to 80 stores, reducing shrink and improving customer experience. Further rollout planned for 2026.
- Store refresh program halfway complete, with positive customer feedback on modern signage and wayfinding.

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