10-QPeriod: Q3 FY2026

ROSS STORES, INC. Quarterly Report for Q3 Ended Nov 1, 2025

Filed December 10, 2025For Securities:ROST

Summary

Ross Stores, Inc. (ROST) reported solid financial results for the third quarter and the first nine months of fiscal year 2025. Sales saw a significant increase, driven by both comparable store sales growth and contributions from new store openings. The company demonstrated strong operational execution despite ongoing macroeconomic uncertainties, including inflation and geopolitical factors, by effectively managing costs and delivering value to its customers. Profitability remained robust, with net earnings and earnings per share showing positive year-over-year growth. The company continued its strategic store expansion, opening 40 new locations in the quarter and completing its fiscal year 2025 expansion program. Management remains focused on its value-oriented strategy, which continues to resonate with consumers, and expects its liquidity position, cash flow from operations, and available credit facilities to be sufficient to meet its financial obligations and investment plans over the next 12 months. The company also continued its share repurchase program and regular dividend payments to shareholders.

Financial Highlights

48 data points
Beta

Revenue

$5.60B

28.0% Gross Margin

Net Income

$511.94M

9.1% Net Margin

EPS (Diluted)

$1.58

Total Assets

$15.41B

Cash & Equivalents

$4.06B

Free Cash Flow

$617.83M

Financial Statements
Beta
Revenue$5.60B
Cost of Revenue$4.03B
Gross Profit$1.57B
SG&A Expenses$920.00M
Operating Income$648.50M
Net Income$511.94M
EPS (Basic)$1.59
EPS (Diluted)$1.58
Shares Outstanding (Basic)321.27M
Shares Outstanding (Diluted)323.30M

Key Highlights

  • 1Total sales increased by 10% to $5.6 billion for the third quarter and by 6% to $16.1 billion for the first nine months of fiscal 2025.
  • 2Comparable store sales grew by 7% in the third quarter and 3% for the first nine months, indicating sustained customer demand.
  • 3Diluted earnings per share (EPS) increased by 7% to $1.58 for the third quarter and by 2% to $4.61 for the nine-month period.
  • 4The company opened 40 new stores in the third quarter, concluding its fiscal 2025 expansion plan with 90 new stores.
  • 5Operating income margin slightly decreased to 11.6% for the quarter and 11.7% for the nine months, impacted by increased distribution and tariff-related costs.
  • 6The company maintained a strong liquidity position with $4.1 billion in unrestricted cash and cash equivalents as of November 1, 2025.
  • 7Ross Stores continued its capital return program, repurchasing $787.5 million of common stock year-to-date and paying dividends.

Frequently Asked Questions

Sales growth in the third quarter was primarily driven by a 7% increase in comparable store sales and an additional 0.2 billion in sales from new, non-comparable stores. This comparable store sales increase was equally attributed to higher average transaction values (basket) and increased customer traffic.

While net earnings and EPS increased, operating income margin saw a slight decrease. This was mainly due to a 35 basis point increase in the cost of goods sold as a percentage of sales. Key drivers for this increase included higher distribution costs, influenced by the opening of a new distribution center and tariff-related processing costs, as well as a slight decrease in merchandise margin due to tariff costs.

The company is actively managing its inventory, utilizing packaway opportunities to take advantage of compelling merchandise purchase options. Packaway inventory represented 36% of total inventory as of November 1, 2025. The timing of releasing this inventory is driven by product mix, seasonality, and assortment plans, with most packaway inventory remaining in storage for less than six months.

Ross Stores acknowledges the ongoing macroeconomic uncertainty, including persistent inflation, elevated tariffs, and geopolitical instability. Despite these challenges, the company remains focused on its value-driven strategy, believing that customer demand for bargains will continue to support market share gains. They are monitoring these factors closely and adapting their strategies as needed.