Executive Summary

• Ross Stores reported 3Q18 revenues of $3.55 billion, up 6.6% year over year and in line with the consensus estimate. Diluted EPS was $0.91, up 26.9% year over year and $0.01 above the consensus estimate of $0.90.
• Comparable sales increased by 3.0% year over year, beating the consensus estimate of 2.8%.
• Ross Stores expects 4Q18 sales to decrease 1%-2% and provided 4Q18 guidance for EPS in the range of $1.09–$1.14, compared to the consensus estimate of $1.08, which includes a one-time, non-cash benefit of approximately $0.97 per share related to the favorable resolution of a tax matter. The company raised its full-year earnings per share guidance to $4.15–$4.20, from $4.01–$4.10.