Ross Stores, Inc. (ROST) shares are having a nice Friday, climbing after the discount retailer delivered a stellar third quarter report that beat expectations across the board.

The Numbers Look Good

Ross reported earnings per share of $1.58, comfortably ahead of the $1.41 consensus estimate. Revenue came in at $5.60 billion, topping expectations of $5.41 billion. When you beat on both the top and bottom lines, investors tend to notice.

Comparable store sales rose 7% while total sales increased 10% from last year. CEO Jim Conroy pointed to strong customer engagement driven by brand-name merchandise and a new marketing campaign, noting that sales growth was broad-based across both categories and regions. Operating margin hit 11.6%, showing the company isn't just growing revenue but maintaining profitability as it expands.

Raised Guidance Sweetens the Deal

For the fourth quarter, Ross raised its GAAP earnings per share guidance from a range of $1.74 to $1.81 up to $1.77 to $1.85. The consensus estimate sits at $1.79, right in the middle of that new range.

The full-year outlook got an even bigger boost. The company increased its fiscal 2025 GAAP earnings per share guidance from between $6.08 to $6.21 to between $6.38 to $6.46, well above the consensus estimate of $6.23.

Analyst Reactions

Following the earnings report, several analysts adjusted their price targets. Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $160 to $175. B of A Securities analyst Lorraine Hutchinson maintained a Buy rating and bumped the price target from $175 to $200. Baird analyst Mark Altschwager maintained an Outperform rating and raised the price target from $170 to $182.

At the time of writing, Ross shares are trading 5.91% higher at $169.98.