Ross Stores Reports Strong Second Quarter Sales and Earnings Results

Rhea-AI Summary

Ross Stores (Nasdaq: ROST) reported strong results for the 13‑week second quarter ended August 1, 2026, with sales up 13% to $6.26 billion and comparable store sales rising 10%, driven primarily by higher customer traffic. Operating income reached $1.10 billion and operating margin expanded 610 basis points, including a 405‑basis‑point benefit from about $253 million of IEEPA tariff refunds. Earnings per diluted share were $2.66, including roughly $0.60 from the refunds, compared with $1.56 a year earlier.

For the first six months, sales grew 17% to $12.28 billion and EPS rose to $4.69 from $3.03. Ross opened 47 new stores in the quarter and raised its 2026 plan to 115 openings. The company repurchased 1.4 million shares for $319 million and increased full‑year 2026 EPS guidance to $8.61–$8.77, which includes the tariff refund benefit.

Positive

• Q2 sales growth +13% to $6.26 billion with 10% comps
• First-half comps up 13% with sales at $12.28 billion (+17%)
• Q2 operating income $1.10 billion; margin +610 bps including refunds
• Q2 diluted EPS $2.66 vs. $1.56; +$0.60 from tariff refunds
• Raised FY 2026 EPS guidance to $8.61–$8.77 including refund benefit
• Expanded store growth plan to 115 new locations in fiscal 2026

Negative

• Q2 and FY 2026 EPS include a one-time ~$0.60 per share tariff refund benefit
• Second-half comparable sales guidance of 6–7% for Q3 and 4–5% for Q4 is below first-half 13% comps

Market Reaction – ROST

+3.93% $238.00 2.2x vol

15m delay

+3.93% Vs previous close

$238.00 Last Price

$228.05 $241.00 Day Range

$76.15B Market Cap

2.2x Rel. Volume

Following this news, ROST has gained 3.93%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 16 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $238.00. Trading volume is elevated at 2.2x the average, suggesting notable buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

ROST's prior first-quarter earnings announcement produced an 8.11% 24-hour reaction, giving this ear...

Analysis

ROST's prior first-quarter earnings announcement produced an 8.11% 24-hour reaction, giving this earnings release a directly comparable platform reference. The tariff-refund contribution remains a consideration when assessing underlying performance.

Key Figures

Q2 sales growth: 13% Comparable store sales: 10% Operating profits: $1.1 billion +5 more

8 metrics

Q2 sales growth 13% Second quarter fiscal 2026 versus last year

Comparable store sales 10% Second quarter fiscal 2026

Operating profits $1.1 billion Second quarter fiscal 2026, including approximately $253 million in tariff refunds

Operating margin increase 610 basis points Second quarter fiscal 2026, including 405 basis points from tariff refunds

Diluted EPS $2.66 Second quarter fiscal 2026 versus $1.85 to $1.93 guidance

Q2 sales $6.3 billion Second quarter fiscal 2026, up from $5.5 billion in 2025

Share repurchases $319 million Second quarter fiscal 2026 aggregate repurchase price

Fiscal 2026 EPS outlook $8.61 to $8.77 Raised fiscal 2026 projection, including approximately $0.60 tariff-refund benefit

Historical Context

5 past events · Latest: Aug 06 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 06	Earnings call notice	Neutral	+0.4%	Announced second-quarter earnings release timing and conference call details
Jul 20	Store expansion	Positive	+0.0%	Opened 47 stores and remained on track for approximately 110 annual openings
May 21	First-quarter earnings	Positive	+8.1%	Reported strong sales, earnings growth, and results above quarterly guidance
May 20	Dividend declaration	Positive	-0.3%	Declared a regular quarterly cash dividend of $0.445 per share
May 07	Earnings call notice	Neutral	+0.6%	Announced first-quarter earnings release timing and conference call details

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

ROST's recent earnings-related announcement was followed by a positive 8.11% 24-hour reaction, while other event types produced smaller or mixed reactions.

Key Terms

ieepa tariff refunds, basis points, comparable store sales, weighted-average shares outstanding

4 terms

ieepa tariff refunds regulatory

"which includes approximately $253 million from IEEPA tariff refunds."

Refunds under the International Emergency Economic Powers Act (IEEPA) are repayments of import duties, fees, or penalties that were charged because of trade restrictions or sanctions put in place under emergency authority and later reversed, modified, or found inapplicable. For investors, these refunds can change a company’s past cash outflows and future cost structure—similar to getting a billed charge returned after a rule change—affecting reported earnings or cash available for other uses.

basis points financial

"Operating margin increased 610 basis points, including 405 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

comparable store sales financial

"with comparable store sales up a very strong 10%"

Comparable store sales measure the change in revenue generated by stores that have been open for a certain period, typically at least one year. It helps assess how well a business is growing by showing whether existing stores are attracting more customers and sales, rather than just counting new store openings. Investors use this figure to gauge the true health and performance of a company's core operations over time.

weighted-average shares outstanding financial

"Weighted-average shares outstanding (000)"

Weighted-average shares outstanding is the average number of shares of a company's stock that are available to investors over a specific period, adjusted for any changes like new share issues or buybacks. It matters to investors because it ensures that earnings and profits are accurately divided among all shareholders, providing a fair view of the company's profitability per share over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Raises Second Half and Fiscal 2026 Outlook

DUBLIN, Calif., Aug. 20, 2026 /PRNewswire/ -- Ross Stores, Inc. (Nasdaq: ROST) today reported financial results for the 13‑week quarter ended August 1, 2026.

Highlights:

• Total sales for the second quarter of fiscal 2026 increased 13% versus last year, with comparable store sales up a very strong 10%, primarily driven by customer traffic.
• Second quarter operating profits were $1.1 billion, which includes approximately $253 million from IEEPA tariff refunds. Operating margin increased 610 basis points, including 405 basis points from the tariff refunds. Excluding this benefit, operating margin increased by 205 basis points, well above the Company's plan for an increase of 130 to 150 basis points.
• Earnings per share for the second quarter were $2.66, which includes an approximate $0.60 per share benefit from the tariff refunds, well above our guidance of $1.85 to $1.93.  
• Opened 47 new stores during the quarter, including 35 Ross and 12 dd's DISCOUNTS. Increasing 2026 store opening plans to 115 new locations.

Jim Conroy, Chief Executive Officer, commented, "We achieved stellar sales and earnings growth in the second quarter. I am incredibly proud of our teams across the Company, whose dedication and strong execution drove these outstanding results. Our performance was fueled by our compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience. We were pleased to see strength throughout the quarter, with comparable store sales growth once again primarily driven by customer traffic. Importantly, that growth was supported by both an increase in new customers and higher engagement from existing customers. 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."

Second Quarter and First Six Months Results

Sales for the second quarter increased 13% to $6.3 billion, up from $5.5 billion in 2025. Comparable store sales rose a very strong 10% for the quarter on top of a 2% gain last year. Net income was $851 million versus $508 million last year, while earnings per share were $2.66 compared to $1.56 per share in the prior year period.

For the first six months of fiscal 2026, sales increased a robust 17% to $12.3 billion, up from $10.5 billion in 2025. Comparable store sales for the six-month period were up 13%. Net income was $1.5 billion versus $987 million last year, while earnings per share were $4.69 compared to $3.03 per share in the prior year period.

Both the second quarter and first six months 2026 results include about $253 million in IEEPA tariff refunds, benefiting earnings per share by approximately $0.60.

Update on Shareholder Payouts

During the 2026 second quarter, a total of 1.4 million shares of common stock were repurchased for an aggregate price of $319 million under the Company's two-year $2.55 billion authorization approved by its Board of Directors in March 2026. The Company remains on track to buy back a total of $1.275 billion in common stock during fiscal 2026.

Fiscal 2026 Guidance

Mr. Conroy commented, "Looking ahead, we exited the second quarter with building momentum and are excited for the plans we have in place entering the Fall season. Despite facing significantly more challenging year-over-year comparisons in the back half, we are raising our outlook for both the third and fourth quarters. Comparable store sales are now expected to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter. If the second half of 2026 performs in line with these sales projections, our earnings per share ranges for the third and fourth quarters are projected to be $1.75 to $1.83 and $2.17 to $2.26, respectively."

Mr. Conroy continued, "Based on our strong first half results and our updated second half guidance, we are increasing our 2026 fiscal year earnings per share projections to be in the range of $8.61 to $8.77, which again includes an approximate $0.60 earnings per share benefit from IEEPA tariff refunds recognized in the second quarter. From a store growth perspective, we continue to be encouraged by the success of our expansion strategy across both new and existing markets. As a result, we are increasing our 2026 new store opening plan to 115 locations, consisting of approximately 90 Ross Dress for Less and 25 dd's DISCOUNTS stores."

Mr. Conroy concluded, "The year is off to a very strong start with the entire organization executing at a high level. As our efforts to improve topline growth continue, we remain focused on disciplined, consistent execution across the business. Moving forward, we believe we are well positioned to capture additional market share and drive profitable growth over the long term."

The Company will host a conference call on Thursday, August 20, 2026 at 4:15 p.m. Eastern time to provide additional details concerning its second quarter results and management's outlook for the second half and fiscal year 2026. A real-time audio webcast of the conference call will be available in the Investors section of the Company's website, located at www.rossstores.com. An audio playback will be available at 201-612-7415, PIN #13762049 until 8:00 p.m. Eastern time on August 27, 2026, as well as on the Company's website.

Forward-Looking Statements:  This press release and the related conference call remarks contain forward-looking statements regarding, without limitation, projected sales, costs and earnings, planned new store growth, capital expenditures, liquidity and other matters. These forward-looking statements reflect our then-current beliefs, plans, and estimates with respect to future events and our projected financial performance, operations, and competitive position, and they are subject to risks and uncertainties which could cause our actual results to differ materially from management's current expectations. The words "plan," "expect," "target," "anticipate," "estimate," "believe," "forecast," "projected," "guidance," "outlook," "looking ahead," and similar expressions identify forward-looking statements. Risk factors for Ross Dress for Less^® ("Ross") and dd's DISCOUNTS^® include without limitation, risk from adverse changes in the macroeconomic environment, government regulations and policies, geopolitical conditions and conflicts, and financial and credit markets; increased costs of fuel and other consumer necessities, continuing inflation and other external economic trends and events may have significant negative effects on consumer confidence, shopping behavior, and spending, and also on our costs; tariff increases (or threats of increases) and other changes and uncertainty in U.S. trade or tax policy regarding apparel, home-related merchandise, shoes, and other goods we sell that are produced in other countries; competitive pressures and the pace of change in the retailing industry; unexpected changes in the level of consumer spending or preferences; adverse or unseasonable weather may affect shopping patterns and consumer demand for seasonal apparel and other merchandise, and may result in temporary store closures and disruptions in deliveries of merchandise to our stores; our dependence on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to source and purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices; our need to expand in existing markets and enter new geographic markets in order to achieve growth; our need to obtain acceptable new store sites with favorable consumer demographics in order to achieve growth; our need to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies, as well as labor shortages, increased turnover, or increased labor costs; our need to effectively manage our inventories, markdowns, and inventory shortage in order to achieve our planned gross margins; information or data security breaches, including cyberattacks on our transaction processing and computer information systems, including malware intrusion, data exfiltration, identity theft, and other types of cybersecurity threats, could disrupt our operations, result in theft or unauthorized disclosure of our confidential and valuable business information or credit card and other customer information, and could disrupt our operations, damage our reputation, increase our costs, and create significant legal exposure; disruptions in our supply chain or in our information systems could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner; risks associated with importing and selling merchandise produced in other countries; damage to our corporate reputation or brands; a natural or man-made disaster in a region where we have a concentration of stores, offices, or a distribution center; consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs; an adverse outcome in various legal, regulatory, or tax matters, could damage our reputation or brand and increase our costs. Other risk factors are set forth in our SEC filings including the Form 10-K for fiscal 2025 and fiscal 2026 Form 8-Ks and 10-Q on file with the SEC. The factors underlying our forecasts and plans are dynamic and subject to change. As a result, any forecasts or forward-looking statements speak only as of the date they are given and do not necessarily reflect our outlook at any other point in time. We disclaim any obligation to update or revise these forward-looking statements.

About Ross Stores, Inc.

Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2025 revenues of $22.8 billion. Currently, the Company operates Ross Dress for Less^® ("Ross"), the largest off-price apparel and home fashion chain in the United States with 1,952 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. Ross offers first-quality, in-season, brand name and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 376 dd's DISCOUNTS^® stores in 23 states that feature a more moderately-priced assortment of first-quality, in-season apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. Additional information is available at www.rossstores.com.

Ross Stores, Inc.
Condensed Consolidated Statements of Earnings
					Three Months Ended				Six Months Ended
($000, except stores and per share data, unaudited)					August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Sales					$             6,264,886		$             5,529,152		$           12,275,362		$           10,514,123
Costs and Expenses
	Cost of goods sold				4,145,215		4,002,167		8,375,804		7,583,533
	Selling, general and administrative				1,016,053		888,711		1,991,914		1,685,846
Operating income					1,103,618		638,274		1,907,644		1,244,744
Interest income, net					(31,144)		(32,346)		(64,593)		(66,755)
Earnings before taxes					1,134,762		670,620		1,972,237		1,311,499
Provision for taxes on earnings					283,463		162,625		470,974		324,255
Net earnings					$                851,299		$                507,995		$             1,501,263		$                987,244
Earnings per share
	Basic				$                     2.68		$                     1.57		$                     4.72		$                     3.05
	Diluted				$                     2.66		$                     1.56		$                     4.69		$                     3.03
Weighted-average shares outstanding (000)
	Basic				317,687		323,000		318,322		323,938
	Diluted				319,450		324,796		320,343		325,909
Store count at end of period					2,328		2,233		2,328		2,233

 

Ross Stores, Inc.
Condensed Consolidated Balance Sheets
($000, unaudited)				August 1, 2026		August 2, 2025
Assets
Current Assets
	Cash and cash equivalents			$                 4,288,124		$                 3,847,016
	Accounts receivable			248,140		210,520
	Merchandise inventory			3,087,370		2,608,485
	Prepaid expenses and other			252,726		259,815
		Total current assets		7,876,360		6,925,836
Property and equipment, net				4,257,806		3,906,340
Operating lease assets				3,545,351		3,374,582
Other long-term assets				302,763		288,761
Total assets				$               15,982,280		$               14,495,519
Liabilities and Stockholders' Equity
Current Liabilities
	Accounts payable			$                 2,621,740		$                 2,205,613
	Accrued expenses and other			744,284		655,218
	Current operating lease liabilities			752,302		716,162
	Accrued payroll and benefits			440,837		315,893
	Income taxes payable			84,916		—
	Current portion of long-term debt			241,459		499,122
		Total current liabilities		4,885,538		4,392,008
Long-term debt				777,053		1,017,218
Non-current operating lease liabilities				2,968,337		2,835,481
Other long-term liabilities				295,611		279,258
Deferred income taxes				312,557		238,985
Commitments and contingencies
Stockholders' Equity				6,743,184		5,732,569
Total liabilities and stockholders' equity				$               15,982,280		$               14,495,519

 

Ross Stores, Inc.
Condensed Consolidated Statements of Cash Flows
				Six Months Ended
($000, unaudited)				August 1, 2026		August 2, 2025
Cash Flows From Operating Activities
Net earnings				$               1,501,263		$                  987,244
Adjustments to reconcile net earnings to net cash provided by operating activities:
	Depreciation and amortization			272,790		242,337
	Stock-based compensation			106,377		83,239
	Deferred income taxes			51,130		51,945
	Change in assets and liabilities:
		Merchandise inventory		(456,400)		(163,972)
		Other current assets		(85,729)		(92,049)
		Accounts payable		226,307		101,937
		Other current liabilities		65,676		(83,135)
		Income taxes		29,788		(54,139)
		Operating lease assets and liabilities, net		166		4,301
		Other long-term, net		399		369
		Net cash provided by operating activities		1,711,767		1,078,077
Cash Flows From Investing Activities
Additions to property and equipment				(460,217)		(409,105)
		Net cash used in investing activities		(460,217)		(409,105)
Cash Flows From Financing Activities
Issuance of common stock related to stock plans				13,183		12,380
Treasury stock purchased				(136,595)		(64,420)
Repurchase of common stock				(637,500)		(525,021)
Excise tax paid on repurchase of common stock				(9,496)		(9,443)
Dividends paid				(286,191)		(265,637)
Payment of long-term debt				(500,000)		(700,000)
		Net cash used in financing activities		(1,556,599)		(1,552,141)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents				(305,049)		(883,169)
Cash, cash equivalents, and restricted cash and cash equivalents:
		Beginning of period		4,661,973		4,796,462
		End of period		$               4,356,924		$               3,913,293
Reconciliations:
	Cash and cash equivalents			$               4,288,124		$               3,847,016
	Restricted cash and cash equivalents included in prepaid expenses and other			21,328		17,232
	Restricted cash and cash equivalents included in other long-term assets			47,472		49,045
Total cash, cash equivalents, and restricted cash and cash equivalents:				$               4,356,924		$               3,913,293
Supplemental Cash Flow Disclosures
Interest paid				$                    19,839		$                    35,939
Income taxes paid, net				$                  390,056		$                  326,449

 

Contacts:         William W. Sheehan II	Connie Kao
Executive Vice President,	Senior Vice President, Investor Relations
Chief Financial Officer	(925) 965-4668
(925) 965-4150	connie.kao@ros.com

View original content:https://www.prnewswire.com/news-releases/ross-stores-reports-strong-second-quarter-sales-and-earnings-results-302856807.html

SOURCE Ross Stores, Inc.

FAQ

How did Ross Stores (ROST) perform in the second quarter of 2026?

Ross Stores delivered strong Q2 2026 results, with sales up 13% to $6.26 billion and comparable sales rising 10%. According to Ross Stores, diluted EPS increased to $2.66, helped by about $0.60 per share from IEEPA tariff refunds.

What is Ross Stores' updated earnings guidance for fiscal 2026 (ROST)?

Ross Stores raised its fiscal 2026 diluted EPS guidance to $8.61–$8.77. According to Ross Stores, this full-year range includes an approximate $0.60 per share benefit from IEEPA tariff refunds that were recognized in the second quarter of 2026.

What comparable store sales growth is Ross Stores (ROST) expecting for the second half of 2026?

Ross Stores expects comparable store sales to rise 6–7% in Q3 2026 and 4–5% in Q4 2026. According to Ross Stores, this guidance follows first-half comp growth of 13% and reflects tougher year-over-year comparisons in the back half.

How many new stores will Ross Stores (ROST) open in fiscal 2026?

Ross Stores increased its 2026 store opening plan to 115 new locations. According to Ross Stores, this will include approximately 90 Ross Dress for Less stores and 25 dd's DISCOUNTS stores, building on 47 openings completed during the second quarter.

How did tariff refunds impact Ross Stores' Q2 2026 results (ROST)?

IEEPA tariff refunds added about $253 million to operating profits and roughly $0.60 to Q2 2026 EPS. According to Ross Stores, these refunds also contributed around 405 basis points to operating margin expansion within the quarter’s 610-basis-point margin increase.

What shareholder returns did Ross Stores (ROST) provide in Q2 2026?

In Q2 2026, Ross Stores repurchased 1.4 million shares for $319 million under its $2.55 billion authorization. According to Ross Stores, the company remains on track to repurchase a total of $1.275 billion of common stock during fiscal 2026, alongside ongoing dividends.

What were Ross Stores' key first-half 2026 financial metrics (ROST)?

For the first six months of 2026, sales reached $12.28 billion, up 17%, with comparable sales up 13%. According to Ross Stores, net earnings were $1.50 billion and diluted EPS was $4.69, including the Q2 IEEPA tariff refund benefit.