Ross Stores, Inc. (ROST) had a good Thursday. The off-price retailer dropped its third-quarter earnings report after the closing bell, and the results were solid enough to send shares climbing in extended trading.

The Numbers

Ross Stores reported quarterly earnings of $1.58 per share, beating the analyst consensus of $1.41. Revenue came in at $5.6 billion, comfortably ahead of the $5.42 billion analysts were expecting. When you beat on both the top and bottom lines, investors tend to notice.

What's Working

CEO Jim Conroy seemed pleased with how things are trending. "We are pleased with our third-quarter sales results, which accelerated from the prior quarter. Our merchandise assortment of compelling brand name values resonated with shoppers, and our new marketing campaign drove excitement and higher customer engagement," Conroy said.

Translation: people are buying what Ross is selling, and the company's marketing push is actually working. That's the kind of momentum retailers dream about heading into the holiday quarter.

Looking Ahead

Ross raised its guidance for both the fourth quarter and the full fiscal year. The company now expects Q4 earnings between $1.77 and $1.85 per share, above the previous analyst estimate of $1.79. For the full fiscal 2025, Ross boosted its EPS guidance to a range of $6.38 to $6.46, significantly higher than the $6.23 consensus estimate.

According to market data, Ross Stores stock was up 3.51% at $166.14 in Thursday's extended trading session.