Ross Stores Hikes Its Outlook as Bargain-Hunting Shoppers Drive Up Sales. The Stock Is Surging

Ross Stores shares gained Friday, a day after the off-price retailer reported better-than-expected earnings.

The company raised its full-year earnings guidance and said it plans to open 115 new locations this year.

Ross Stores ( ROST ) stock jumped Friday after the discount retailer topped quarterly estimates and raised its full-year outlook, citing strong demand for discounted offerings.

The off-price retailer’s revenue rose 13% year-over-year to $6.3 billion in the second quarter, with same-store sales increasing 10%. Net income rose 68% to $851 million, or $2.66 per diluted share.

A $253 million tariff refund boosted earnings by about 60 cents per share, but profits would have still exceeded the company’s guidance without the refund.

The company attributed its double-digit sales growth to higher traffic, as it attracted new customers and drove higher engagement from existing ones.

“These trends reinforce our belief that the actions we are taking are not only driving the current business performance but that we can continue to build on our early successes,” CEO Jim Conroy said in the company’s earnings release.

Ross Stores raised its same-store sales forecast for the third and fourth quarters, as well as its full-year earnings guidance.

The company now expects same-store sales to grow between 6% and 7% in the current quarter, and between 4% and 5% in the fourth.

Full-year earnings are expected to be in the range of $8.61 to $8.77, up from the prior estimate of $7.50 to $7.74.

The company also upped its full-year expansion plans to 115 new locations from last quarter’s forecast of 110.

Ross Stores shares were up about 4% Friday morning. The stock has risen about 32% so far this year.