Ross Stores' stock surged 5.07% in post-market trading on Thursday, following the release of its fiscal first-quarter earnings report that significantly exceeded market expectations.

The value retailer reported Q1 earnings per share of $2.02, representing a 37% year-over-year increase and beating analyst consensus estimates ranging from $1.68 to $1.73. Revenue climbed 21% to $6.01 billion, also surpassing expectations of approximately $5.64 billion. Comparable store sales grew by a robust 17%, driven primarily by higher customer traffic across income levels and demographic groups.

Building on the strong quarterly performance, Ross Stores raised its full-year outlook. The company now expects fiscal 2026 earnings per share of $7.50 to $7.74, up from its previous forecast of $7.02 to $7.36. It also raised its annual comparable sales growth forecast to 6%-7% from 3%-4%. CEO Jim Conroy attributed the strong results to compelling merchandise assortments, effective marketing initiatives, an improved in-store experience, and a benefit from higher consumer spending related to tax refunds.