Retail prices are poised to increase and U.S. consumers will be seeking “value” in the fall season, Ross Chief Executive Jim Conroy said Thursday as the company reported quarterly earnings. When they do, Ross, with its loyal customer base shopping at Ross Dress for Less and DD’s Discounts stores, will be ready, Conroy said.

Ross Stores expects third-quarter profit of $1.31 to $1.37 per share, below estimates of $1.47, but it targets a profit of $1.74 to $1.81 per share for the key holiday quarter, which was above estimates of $1.69.

For Q3 and Q4, the company sees store sales growth of up 2% to 3%. If the second half of 2025 performs in line with these sales projections, the company forecast earnings per share for Q3 and Q4 of $1.31 to $1.37 and $1.74 to $1.81, respectively.

Ross Stores, Inc. reported earnings in the second quarter slightly below year-ago levels due to tariff-related costs but exceeded company guidance due to an acceleration in July sales, driven by healthy back-to-school demand. The off-price retailer reinstated guidance for the year that was below its initial forecast.