Ross Stores (ROST.US) reported first-quarter results that exceeded market expectations and raised its full-year guidance for comparable sales and profit, highlighting resilient consumer demand for its value-priced clothing and accessories amidst ongoing economic uncertainty.

For the first quarter, Ross achieved a 21% year-over-year increase in sales, reaching $6 billion, surpassing analyst forecasts. Comparable sales surged by 17%, a significant improvement from flat performance in the same period last year. Earnings per share grew 37% to $2.02, also beating the consensus estimate of $1.73.

As persistent inflation pressures continue to constrain household budgets, discount retailers like Ross are successfully attracting cost-conscious shoppers. "We saw robust growth in customer counts across income levels, ethnicities, and age groups, including younger shoppers, as evidenced by our comparable sales results," stated Ross CEO Jim Conroy during the earnings call.

Looking ahead, Ross anticipates second-quarter comparable sales growth in the range of 6% to 7%. It forecasts EPS for the quarter to be between $1.85 and $1.93, representing a year-over-year increase of 19% to 24%.

The company also raised its guidance for the 2026 fiscal year. It now expects full-year comparable sales growth of 6% to 7%, up from a prior forecast of 3% to 4%. Full-year EPS is projected to be in the range of $7.50 to $7.74, implying growth of 13% to 17% and exceeding the previous forecast of $7.02 to $7.36.

This performance follows a similar pattern from competitor TJX (TJX.US), which recently reported strong first-quarter results and raised its own annual guidance. TJX posted a 9% year-over-year revenue increase to $14.32 billion and EPS of $1.19, both figures exceeding market expectations.

In after-hours trading following the announcement, Ross's stock rose nearly 6%, while TJX shares gained 1.3%.