Ross Stores, Inc. reported a significant increase in financial performance for the third quarter of fiscal 2025, with sales reaching $5.6 billion, a 10% increase from $5.1 billion in the same period last year. For the nine months ending November 1, 2025, total sales amounted to $16.1 billion, up from $15.2 billion in the prior year, reflecting a 6% growth. The company's net earnings for the third quarter were $511.9 million, compared to $488.8 million in the previous year, resulting in diluted earnings per share of $1.58, up from $1.48.
The increase in sales was primarily driven by a 7% rise in comparable store sales, which was attributed to both an increase in customer traffic and higher average transaction values. Non-comparable store sales also contributed to the growth, reflecting the company's expansion strategy, which included the opening of 40 new stores during the quarter. This brought the total number of Ross and dd’s DISCOUNTS locations to 2,273 across the United States and territories, marking a strategic expansion into new markets such as Puerto Rico and the New York Metro area.
Operationally, Ross Stores experienced a rise in costs, with the cost of goods sold increasing to 72.0% of sales for the third quarter, up from 71.7% in the prior year. This increase was largely due to higher distribution costs associated with the opening of a new distribution center and tariff-related expenses. Selling, general, and administrative expenses also rose, reflecting higher store-related costs. Despite these increases, the company maintained a strong operating income of $648.5 million for the quarter, although this represented a slight decrease as a percentage of sales compared to the previous year.
Looking ahead, Ross Stores remains cautious about the macroeconomic environment, which continues to be influenced by inflation, tariffs, and geopolitical factors. The company plans to continue its focus on delivering value to customers while evaluating opportunities for further store openings and potential real estate acquisitions. The management expressed confidence in the company's ability to navigate these challenges and maintain its market position, supported by a robust cash balance of $4.1 billion and a $1.3 billion credit facility available for future needs.
About ROSS STORES, INC.
Ross Stores, Inc. operates two off-price retail brands, Ross Dress for Less and dd’s DISCOUNTS, offering first-quality, name-brand apparel, accessories, footwear, and home goods at significant discounts. Serving primarily middle- and lower-income consumers across the U.S., the company focuses on value, wide product assortments, and organized store environments. Its business model emphasizes opportunistic purchasing, low operating costs, and strategic store locations to deliver competitive prices and convenience.
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