04:54 PM EST, 11/20/2025 (MT Newswires) -- Ross Stores ( ROST ) reported an unexpected increase in fiscal third-quarter earnings as price-conscious consumers turned to the off-price retailer amid high inflation.

Per-share earnings increased to $1.58 during the three months ended Nov. 1 from $1.48 a year earlier. That compares with the mean analyst estimate on FactSet that called for a drop to $1.41. Revenue climbed 10% to $5.6 billion, exceeding the Street's $5.42 billion call.

Comparable sales advanced 7%, stronger than the Street's forecast for a 3.9% gain.

Ross Stores' ( ROST ) results come as consumers feel pinched by inflation that clocked in at 3% year over year in September.

For the fourth quarter, Ross Stores ( ROST ) expects EPS of $1.77 to $1.85, up from the prior guidance of $1.74 to $1.81. The market projects $1.78. Comparable sales are seen rising 3% to 4%, higher than 2% to 3% previously expected and 2.8% growth modeled by analysts.

"We are optimistic about our prospects for the holiday season, driven by our ongoing focus on delivering quality, branded merchandise at exceptional value," Chief Executive Jim Conroy said in a statement. "This approach continues to gain strong traction with the consumer, particularly in an environment of rising prices across mainstream retail."

Earlier this week, Target ( TGT ) maintained its cautious approach for the holiday season, given the current consumer landscape.

Ross Stores' ( ROST ) Conroy now expects tariff-related costs to be "negligible" in the fourth quarter.

The company anticipates reporting fiscal 2025 EPS at $6.38 to $6.46, compared with $6.08 to $6.21 previously projected. The consensus view indicates $6.23.