Ross Stores jumps after raising full-year profit guidance

As of last close, Ross Stores shares climbed more than 27% year-to-date, compared with a 11.6% jump in the S&P 500 .SPX.

• The company raised its annual earnings per share forecast to the range of $8.61 to $8.77, compared with its previous outlook of $7.50 to $7.74.
• It expects comparable store sales to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter, compared with analysts' expectations of a 3.1% and 2.6% rise, respectively.
• The company had earlier forecast annual same-store sales to rise between 6% and 7%.
• It reported second-quarter revenue of $6.26 billion, a rise of about 13% from a year earlier and beating analyst estimates of $6.18 billion, according to data compiled by LSEG.
• Ross Stores reported an estimate-beating second-quarter EPS of $2.06, which includes an approximate $0.60 per share benefit from tariff refunds.

In contrast, earlier this week, rival TJX Companies TJX.N reported a slowdown at its TJ Maxx and Marshalls discount apparel chains in the second quarter.

"Ross deliberately avoided being the first to raise prices and pass on tariff costs, even intentionally absorbing margin burdens last year. We view this as a savvy move that cemented its low-price leadership and resonated with its customer base," Morningstar analyst Brett Husslein said in a note.

At least four brokerages, including J.P. Morgan and Barclays, raised their price targets on the stock after results.