Ross Stores has reported a strong uplift in sales for the second quarter, as customers increasingly seek off-price products.

The discount retailer saw total sales surge 13 per cent to $6.3 billion during the quarter ended August 1, with comparable store sales up by an impressive 10 per cent.

Management attributed the “stellar” results to higher traffic, supported by more new customers and greater engagement from existing customers. 

“Our performance was fueled by our compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience,” said CEO Jim Conroy.

“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.”  

Operating profit for the quarter nearly doubled to $1.1 billion, including about $253 million from tariff refunds. Operating margin increased 610 basis points, or 205 basis points when excluding this benefit.

On the bottom line, net income increased from $507 million a year ago to $851 million.

For the first half, sales increased a robust 17 per cent to $12.3 billion, with comparable store sales up 13 per cent.

The company has raised its full-year earnings outlook and expanded its new-store opening plan to 115 locations. It still expects annual same-store sales growth of 6-7 per cent.