UPDATE 3-Ross Stores Q1 profit rises; hikes full-year view

* Says margins improve, sales rise 9 pct

* Sees discount-minded consumers adding to traffic

* Raises full-year earnings view

* Shares up as much as 8 pct (Recasts, adds conference call details, analyst comments, updates stock movement)

By Nivedita Bhattacharjee

BANGALORE, May 21 (Reuters) - Off-price retailer Ross Stores Inc (ROST.O: Quote, Profile, Research) posted a 15 percent rise in quarterly profit that matched estimates and it raised its full-year earnings view as strong sales and merchandise margins boosted business.

Shares of the company were trading 7 percent higher at $38.26 Thursday afternoon on Nasdaq after rising as high as $38.69.

"The turmoil in the retail world today will remain an opportunity for us as we expect consumers to continue to seek out bargains and value retailers," Chief Executive Michael Balmuth said on a conference call with analysts, adding that this shift in shopping behavior is bringing more customers to its stores.

Profit margins also benefited from its strategy of operating business on lower inventories, which resulted in lower markdowns, Balmuth said.