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Ross Stores' Q3 Earnings Coming Up: Key Insights for Investors
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Key Takeaways
ROST likely benefited from customer acquisition efforts and stronger comparable-store sales.
Home, cosmetics' decorative housewares and ladies' apparel are expected to have supported sales.
Higher volumes and improved merchandise margins may have boosted profits despite freight and fuel pressures.
Ross Stores, Inc. (ROST - Free Report) is set to unveil its third-quarter fiscal 2026 results on Nov. 19, after market close. Investors are eager to see if the company can beat market expectations. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, implying 10.7% growth from the prior year.
Meanwhile, the consensus mark for earnings has been steady at $1.82 per share in the past seven days, suggesting 15.2% growth from the year-ago period. ROST has a trailing four-quarter earnings surprise of 11.2%, on average.
Ross Stores, Inc. Price, Consensus and EPS Surprise
Ross Stores' third-quarter fiscal 2026 performance is likely to have benefited from sustained demand for value-priced merchandise, supported by the strong sales momentum witnessed in the preceding quarter. The company's efforts to attract new shoppers, regain lapsed customers and encourage more frequent visits from existing customers are likely to have supported comparable-store sales. Its competitive pricing strategy and broader selection of popular brands might have further strengthened customer traffic and spending.
Ross Stores has been witnessing broad-based demand across merchandise categories, with home and cosmetics emerging as particularly strong performers. Momentum in decorative home and housewares, along with continued strength in ladies’ business, particularly juniors, is likely to have contributed to sales. The company's focus on expanding vendor relationships, adding more recognized brands and improving merchandise assortments might have enhanced its appeal across different customer groups.
The company's marketing initiatives and improved in-store execution are likely to have contributed to its quarterly performance. Updated advertising campaigns, stronger social media engagement, and changes to the media mix might have supported customer acquisition, including among younger shoppers. Better merchandise presentation, shorter checkout lines and improved store organization are likely to have enhanced the shopping experience, while increased inventory availability might have helped meet customer demand.
Ross Stores' profitability is likely to have benefited from higher sales volumes, improved merchandise margins and lower distribution costs. Its flexible inventory strategy and access to ample closeout merchandise might have supported product availability, while better inventory management and stronger sales are likely to have aided merchandise margins.
However, elevated fuel prices and higher freight expenses might have weighed on profitability. Greater price competition from mainstream retailers, along with inflationary pressures affecting consumer purchasing power, might have posed additional challenges.
What the Zacks Model Says About ROST’s Q3 Earnings
Our proven model does not conclusively predict an earnings beat for ROST this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
ROST has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are three other companies you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +8.66% and a Zacks Rank of 2. DG is likely to register a top- and bottom-line increase when it reports third-quarter fiscal 2026 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly EPS of $1.40 suggests an increase of 9.4% from the year-ago quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $11.1 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure. DG has a trailing four-quarter earnings surprise of 19.1%, on average.
Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is expected to register a top- and bottom-line increase when it reports third-quarter fiscal 2026 results.
The consensus mark for revenues is pegged at $2.99 billion, indicating a rise of 4.5% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly EPS of $5.60 suggests a dip of 9% from the year-ago quarter. ULTA has a trailing four-quarter earnings surprise of 7.6%, on average.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +13.43% and a Zacks Rank of 2. BBWI is likely to register top- and bottom-line declines when it reports third-quarter fiscal 2026 numbers.
The consensus estimate for quarterly revenues is pegged at $1.5 billion, suggesting a decline of 3.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly EPS of 11 cents suggests a decrease of 68.6% from the year-ago quarter’s reported number. BBWI has a trailing four-quarter earnings surprise of 43%, on average.
View the Zacks #1 Rank List
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Ross Stores' Q3 Earnings Coming Up: Key Insights for Investors
Key Takeaways
Ross Stores, Inc. (ROST - Free Report) is set to unveil its third-quarter fiscal 2026 results on Nov. 19, after market close. Investors are eager to see if the company can beat market expectations. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, implying 10.7% growth from the prior year.
Meanwhile, the consensus mark for earnings has been steady at $1.82 per share in the past seven days, suggesting 15.2% growth from the year-ago period. ROST has a trailing four-quarter earnings surprise of 11.2%, on average.
Ross Stores, Inc. Price, Consensus and EPS Surprise
Ross Stores, Inc. price-consensus-eps-surprise-chart | Ross Stores, Inc. Quote
Key Factors to Observe for ROST's Q3 Earnings
Ross Stores' third-quarter fiscal 2026 performance is likely to have benefited from sustained demand for value-priced merchandise, supported by the strong sales momentum witnessed in the preceding quarter. The company's efforts to attract new shoppers, regain lapsed customers and encourage more frequent visits from existing customers are likely to have supported comparable-store sales. Its competitive pricing strategy and broader selection of popular brands might have further strengthened customer traffic and spending.
Ross Stores has been witnessing broad-based demand across merchandise categories, with home and cosmetics emerging as particularly strong performers. Momentum in decorative home and housewares, along with continued strength in ladies’ business, particularly juniors, is likely to have contributed to sales. The company's focus on expanding vendor relationships, adding more recognized brands and improving merchandise assortments might have enhanced its appeal across different customer groups.
The company's marketing initiatives and improved in-store execution are likely to have contributed to its quarterly performance. Updated advertising campaigns, stronger social media engagement, and changes to the media mix might have supported customer acquisition, including among younger shoppers. Better merchandise presentation, shorter checkout lines and improved store organization are likely to have enhanced the shopping experience, while increased inventory availability might have helped meet customer demand.
Ross Stores' profitability is likely to have benefited from higher sales volumes, improved merchandise margins and lower distribution costs. Its flexible inventory strategy and access to ample closeout merchandise might have supported product availability, while better inventory management and stronger sales are likely to have aided merchandise margins.
However, elevated fuel prices and higher freight expenses might have weighed on profitability. Greater price competition from mainstream retailers, along with inflationary pressures affecting consumer purchasing power, might have posed additional challenges.
What the Zacks Model Says About ROST’s Q3 Earnings
Our proven model does not conclusively predict an earnings beat for ROST this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
ROST has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are three other companies you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season:
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +8.66% and a Zacks Rank of 2. DG is likely to register a top- and bottom-line increase when it reports third-quarter fiscal 2026 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly EPS of $1.40 suggests an increase of 9.4% from the year-ago quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $11.1 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure. DG has a trailing four-quarter earnings surprise of 19.1%, on average.
Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is expected to register a top- and bottom-line increase when it reports third-quarter fiscal 2026 results.
The consensus mark for revenues is pegged at $2.99 billion, indicating a rise of 4.5% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly EPS of $5.60 suggests a dip of 9% from the year-ago quarter. ULTA has a trailing four-quarter earnings surprise of 7.6%, on average.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +13.43% and a Zacks Rank of 2. BBWI is likely to register top- and bottom-line declines when it reports third-quarter fiscal 2026 numbers.
The consensus estimate for quarterly revenues is pegged at $1.5 billion, suggesting a decline of 3.2% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly EPS of 11 cents suggests a decrease of 68.6% from the year-ago quarter’s reported number. BBWI has a trailing four-quarter earnings surprise of 43%, on average.