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.

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.