Ross Stores is riding the off-price wave.
The retailer reported quarterly results after the market closed Thursday, improving on both top and bottom lines.
Total sales for the three-month period ending Nov. 2 were $3.8 billion, up from $3.5 billion the same time last year, an increase of 8 percent. Profits grew to $371 million, up from $338 million.
“We are pleased that our third-quarter results were ahead of expectations,” Barbara Rentler, chief executive officer of Ross Stores, said in a statement. “As we enter this year’s holiday season, we are up against multiple years of strong comparable store sales gains. In addition, we expect another fiercely competitive retail landscape, along with ongoing uncertainty surrounding the macroeconomic and political environment. As such, while we hope to do better, we continue to project fourth-quarter comparable store sales gains of 1 percent to 2 percent versus a 4 percent increase last year.”
Even so, retail’s off-price segment is on fire.
As both department stores and specialty retailers continue to shutter stores in the midst of e-commerce’s expansion and the looming threat of tariffs, off-price retail has been able to buck the trend. (Competitor TJX Cos., Inc., parent to T.J. Maxx and Marshalls, also reported impressive quarterly results