Retail Earnings Roundup - Q3 25
Off-Price and Value Leaders, Ross, Five Below, Dollar General, Costco driving strong performance.
Hey Friends,
With the majority of retailers reporting their Q3 earnings over the past couple of weeks, I wanted to take the time to summarize the results into a consolidated view. These summaries encapsulate the financial performance and outlooks of major retailers for their respective recent quarters.
The latest retail earnings reveal a market increasingly defined by contrasts. Some retailers are capitalizing on value-conscious shoppers or small indulgences, while others struggle with soft traffic and uneven discretionary demand. As we break down the results, a clear picture emerges of which segments are thriving, which are stabilizing, and how consumer behavior is shaping winners and losers heading into the critical 2025 holiday season.
Abercrombie & Fitch
• Quarter Ended: Q3 2025
• Revenue: ~$1.3B
• Net Income: Strong EPS ($2.36)
• Performance: Very strong
• Key Drivers: Hollister growth; margins
American Eagle
• Quarter Ended: Q3 2025
• Revenue: $1.36B
• Net Income: EPS $0.53
• Performance: Beat expectations
• Key Drivers: Aerie strength; marketing wins
Amazon
• Quarter Ended: Q3 2025
• Revenue: $180.2B
• Net Income: $21.2B
• Performance: Excellent
• Key Drivers: AWS acceleration; ad growth
Best Buy
• Quarter Ended: Q3 FY26
• Revenue: Stable
• Net Income: EPS beat
• Performance: Modest improvement
• Key Drivers: Services; electronics stabilization
Chipotle
• Quarter Ended: Q3 2025
• Revenue: $3.0B
• Net Income: EPS up slightly
• Performance: Solid
• Key Drivers: New restaurants; digital sales
Costco
• Quarter Ended: Q3 2025
• Revenue: ~$62B
• Net Income: ~$1.9B
• Performance: Strong
• Key Drivers: E-commerce; traffic
Dick’s Sporting Goods
• Quarter Ended: Q3 2025
• Revenue: Up mid-single digits
• Net Income: Improved
• Performance: Strong
• Key Drivers: Core DICK’S comps; inventory
Dillard’s
• Quarter Ended: Q3 2025
• Revenue: ~$1.47B
• Net Income: ~$130M
• Performance: Solid
• Key Drivers: Tight inventory; margin gains
Kohl’s
• Quarter Ended: Q3 2025
• Revenue: ~$3.6B
• Net Income: ~$11M (adjusted)
• Performance: Mixed
• Key Drivers: Store resets; inventory
Lowe’s
• Quarter Ended: Q3 2025
• Revenue: ~$20.8B
• Net Income: ~$1.6B
• Performance: Good
• Key Drivers: Pro customer; cost control
Macy’s
• Quarter Ended: Q3 2025
• Revenue: ~$4.9B
• Net Income: $11M
• Performance: Better than expected
• Key Drivers: Strategy pivot; stronger comps
Ulta Beauty
• Quarter Ended: Q3 2025
• Revenue: ~$2.9B
• Net Income: EPS $5.14
• Performance: Very strong
• Key Drivers: Prestige beauty demand; e-comm
Sephora (via LVMH)
• Quarter Ended: Q3 2025 (segment)
• Revenue: Up mid-single digits
• Net Income: Not disclosed
• Performance: Strong
• Key Drivers: Global store and digital growth
Walmart
• Quarter Ended: Q3 FY26
• Revenue: ~$179B
• Net Income: ~$6B
• Performance: Strong
• Key Drivers: E-commerce; food strength
Ross Stores
• Quarter Ended: Q3 2025
• Revenue: ~$5.6B
• Net Income: Beat expectations
• Performance: Very strong
• Key Drivers: Off-price traffic; value demand
Five Below
• Quarter Ended: Q3 2025
• Revenue: $1.04B
• Net Income: ~$38M
• Performance: Excellent
• Key Drivers: Comps +14%; new stores
Home Depot
• Quarter Ended: Q3 2025
• Revenue: $41.4B
• Net Income: $3.6B
• Performance: Steady
• Key Drivers: Pro customer; acquisition
Target
• Quarter Ended: Q3 2025
• Revenue: $25.3B
• Net Income: EPS beat
• Performance: Mixed
• Key Drivers: Digital growth; weak discretionary
Dollar General
• Quarter Ended: Q3 2025
• Revenue: $10.6B
• Net Income: EPS $1.28
• Performance: Strong
• Key Drivers: Consumables; cost control
Tractor Supply
• Quarter Ended: Q3 2025
• Revenue: $3.72B
• Net Income: EPS $0.49
• Performance: Good
• Key Drivers: Comps; rural demand
This quarter, value and off-price retailers led the pack, with Ross, Five Below, Dollar General, and Costco posting strong comparable sales and traffic growth as consumers continued to seek deals. Beauty retailers, including Ulta and Sephora, also shined, driven by robust demand for prestige products and expanding loyalty-focused digital sales. Big-box leaders like Walmart and Amazon delivered impressive results, supported by e-commerce strength, grocery resilience, and disciplined margin management. Specialty retailers such as Abercrombie and Dick’s Sporting Goods performed well thanks to clean inventories, effective brand strategies, and steady comp growth. In contrast, department stores like Kohl’s faced soft traffic and uneven sales, while discretionary-heavy retailers such as Target experienced revenue pressure despite operational improvements. Home improvement chains, including Home Depot and Lowe’s, showed steady but modest growth, and traditional department stores such as Macy’s, Dillard’s, and Nordstrom reported mixed results, with Macy’s improving modestly and others remaining stable without notable gains.
Heading into the 2025 holiday season, a clear divide is emerging in retail performance. Value and off-price formats, along with beauty and specialty retailers, are outperforming by appealing either to deal-seeking shoppers or those indulging in small luxuries. Big omnichannel players like Amazon and Walmart continue to benefit from e-commerce, digital advertising, and broad product reach. Meanwhile, department stores and broad-assortment chains remain uneven: Macy’s is showing a turnaround, Kohl’s and Target face ongoing discretionary challenges, and Nordstrom is now private. Home improvement and specialty sports retailers are stable but rely heavily on category-specific demand. Overall, consumers are increasingly selective, trading up in beauty and small indulgences while trading down for value — creating clear winners among discounters and retailers with strong omnichannel execution.