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Ross Stores (NASDAQ: ROST) beats Q1 guidance and raises 2026 EPS outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Ross Stores, Inc. reported very strong results for the 13‑week first quarter ended May 2, 2026, with sales and profits well above expectations and higher guidance for the rest of the year. Sales rose 21% to $6.0 billion, driven by a very robust 17% increase in comparable store sales versus flat performance a year ago. Operating margin reached 13.4%, ahead of the company’s 11.8% to 12.1% plan, helped by strong traffic and effective merchandising.

Net earnings were $650 million, up from $479 million, and diluted earnings per share climbed 37% to $2.02, significantly exceeding guidance of $1.60 to $1.67. During the quarter, Ross repurchased 1.5 million shares for $319 million and remains on track to buy back $1.275 billion of stock in fiscal 2026. For the second quarter, comparable store sales are forecast to grow 6% to 7%, with projected EPS of $1.85 to $1.93 compared with $1.56 last year. Full‑year fiscal 2026 comparable store sales are now expected to increase 6% to 7% on top of 5% growth in 2025, and EPS is projected at $7.50 to $7.74, up 13% to 17% from $6.61.

Positive

  • Substantial beat and raised outlook: Q1 EPS of $2.02 exceeded $1.60–$1.67 guidance, comparable store sales rose 17%, and fiscal 2026 EPS guidance increased to $7.50–$7.74, implying 13%–17% growth over $6.61.

Negative

  • None.

Insights

Ross delivered a major earnings beat and raised its 2026 outlook.

Ross Stores posted a powerful quarter, with sales up 21% to $6.0 billion and comparable store sales jumping 17% after being flat a year earlier. Operating margin of 13.4% exceeded the prior 11.8%–12.1% plan, showing strong leverage from higher traffic and effective merchandising.

Diluted EPS of $2.02 grew 37% and significantly topped guidance of $1.60–$1.67, while net earnings reached $650 million. Management also returned capital, repurchasing 1.5 million shares for $319 million under a two‑year $2.55 billion authorization and affirming a $1.275 billion buyback target for fiscal 2026.

Looking ahead, guidance calls for second‑quarter comparable store sales growth of 6%–7% and EPS of $1.85–$1.93, up from $1.56 last year. Full‑year EPS is projected at $7.50–$7.74, a 13%–17% increase over $6.61. Subsequent quarterly updates in 2026 will show whether momentum in traffic, margins, and planned share repurchases is sustained.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q1 2026 Sales $6,010,476,000 Sales for the 13-week quarter ended May 2, 2026; up 21% vs. 2025
Q1 2026 Net Earnings $649,964,000 Net earnings for the quarter ended May 2, 2026
Q1 2026 Diluted EPS $2.02 per share Diluted earnings per share vs. $1.47 in prior year; guidance was $1.60–$1.67
Comparable Store Sales Growth 17% Q1 2026 comparable store sales increase vs. flat last year
Operating Margin 13.4% First quarter 2026 operating margin vs. plan of 11.8%–12.1%
Share Repurchases Q1 2026 $319,000,000 for 1.5 million shares Repurchased under two-year $2.55 billion authorization; part of $1.275 billion 2026 target
Q2 2026 EPS Guidance $1.85–$1.93 Projected EPS for 13 weeks ending August 1, 2026 vs. $1.56 prior year
Fiscal 2026 EPS Guidance $7.50–$7.74 Projected fiscal 2026 EPS vs. $6.61 for year ended January 31, 2026
comparable store sales financial
"Total sales for the first quarter of fiscal 2026 increased 21% compared to last year, with comparable store sales up a very robust 17%."
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.
operating margin financial
"First quarter operating margin of 13.4% was well above the Company’s plan of 11.8% to 12.1%."
Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.
stock-based compensation financial
"Stock-based compensation | 59,120 | | | 39,296"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
forward-looking statements regulatory
"This press release and the related conference call remarks contain forward-looking statements regarding, without limitation, projected sales, costs and earnings."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
off-price apparel market
"Ross Dress for Less® ("Ross"), the largest off-price apparel and home fashion chain in the United States."
Sales $6,010,476,000 +21% vs. prior year
Comparable store sales 17% increase vs. flat last year
Net earnings $649,964,000
Diluted EPS $2.02 +37% vs. prior year
Operating margin 13.4% above 11.8%–12.1% plan
Guidance

For Q2 2026, Ross forecasts comparable store sales growth of 6%–7% and EPS of $1.85–$1.93. For fiscal 2026, same store sales are expected to grow 6%–7%, with EPS projected between $7.50 and $7.74.

Understanding 8-K Material Events →
FALSE000074573200007457322026-05-212026-05-21



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported):
May 21, 2026

ROSS STORES, INC.
(Exact name of registrant as specified in its charter)
Delaware
0-14678
94-1390387
(State or other jurisdiction of incorporation)(Commission File No.)(I.R.S. Employer Identification No.)

5130 Hacienda Drive, Dublin, California 94568
(Address of principal executive offices)

Registrant's telephone number, including area code:
(925) 965-4400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common stock, par value $.01ROSTNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1

Item 2.02 Results of Operations and Financial Condition.
On May 21, 2026, the Company issued a press release regarding the Company’s financial results for its fiscal quarter ended May 2, 2026. The full text of the Company’s press release is attached hereto as Exhibit 99.1.

The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d)     Exhibits.                         
Exhibit No.Description
99.1
May 21, 2026, Press Release by Ross Stores, Inc.
104Cover Page Interactive Data File. (The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: May 21, 2026
ROSS STORES, INC.
Registrant
By:/s/ William W. Sheehan II
William W. Sheehan II
Executive Vice President and Chief Financial Officer

2

Exhibit 99.1
image_0a.jpg_______________________________________________________________


FOR IMMEDIATE RELEASE

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


Ross Stores Reports Robust First Quarter Sales and Earnings Results,
Significantly Exceeding Guidance

Provides Solid Second Quarter Guidance and Increases Fiscal 2026 Outlook


Dublin, California, May 21, 2026 -- Ross Stores, Inc. (Nasdaq: ROST) today reported financial results for the 13‑week quarter ended May 2, 2026.

Highlights:
•Total sales for the first quarter of fiscal 2026 increased 21% compared to last year, with comparable store sales up a very robust 17%
•First quarter operating margin of 13.4% was well above the Company’s plan of 11.8% to 12.1%, primarily from the strong sales outperformance
•Earnings per share for the first quarter of $2.02 grew 37%, significantly exceeding guidance of $1.60 to $1.67

Jim Conroy, Chief Executive Officer, commented, “We achieved outstanding sales and earnings results in the first quarter with superb execution throughout the business, especially the transition of our Spring assortment. Momentum was solid throughout the quarter, with broad-based strength across the business. Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers. We believe our results also benefited from higher consumer spending related to tax refunds.”

ROSS STORES, INC. 5130 Hacienda Drive, Dublin, CA 94568 (925) 965-4400
        

First Quarter Results

Sales increased 21% to $6.0 billion, up from $5.0 billion in 2025. Comparable store sales rose a very robust 17% for the quarter versus flat sales last year. Net income was $650 million versus $479 million last year, while earnings per share increased 37% to $2.02, compared with $1.47 per share in the prior year period.

Update on Shareholder Payouts

During the first quarter of fiscal 2026, a total of 1.5 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 first quarter with solid momentum, and our underlying business fundamentals remain very strong. As such, for the 13 weeks ending August 1, 2026, comparable store sales are forecasted to increase 6% to 7%. If sales perform in line with this forecast, earnings per share are projected to be $1.85 to $1.93 or growth of 19% to 24%, compared to $1.56 for the second quarter ended August 2, 2025.”

Mr. Conroy continued, “Based on our first quarter results and our second quarter guidance, we are increasing our 2026 fiscal year same store sales growth to 6% to 7% on top of a 5% gain in 2025. As a result, fiscal 2026 earnings per share are now projected to be in the range of $7.50 to $7.74, or growth of 13% to 17% when compared to $6.61 for the fiscal year ended January 31, 2026.”

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.”


2

The Company will host a conference call on Thursday, May 21, 2026 at 4:15 p.m. Eastern time to provide additional details concerning its first quarter results and management’s outlook for the second quarter. 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 #13760373 until 8:00 p.m. Eastern time on May 28, 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 financial and credit markets; continuing inflation and other external economic events and trends may have significant negative effects on our costs, and also on consumer confidence, shopping behavior, and spending; 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 is 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 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.




3

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 1,917 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 365 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.

4


Ross Stores, Inc.
Condensed Consolidated Statements of Earnings
Three Months Ended
($000, except stores and per share data, unaudited)May 2, 2026May 3, 2025
Sales$6,010,476 $4,984,971 
Costs and Expenses
Cost of goods sold4,230,589 3,581,366 
Selling, general and administrative975,861 797,135 
Operating income804,026 606,470 
Interest income, net(33,449)(34,409)
Earnings before taxes837,475 640,879 
Provision for taxes on earnings187,511 161,630 
Net earnings$649,964 $479,249 
Earnings per share
Basic$2.04 $1.48 
Diluted$2.02 $1.47 
Weighted-average shares outstanding (000)
Basic318,957 324,877 
Diluted321,231 327,005 
Store count at end of period2,282 2,205 
5

Ross Stores, Inc.
Condensed Consolidated Balance Sheets
($000, unaudited)May 2, 2026May 3, 2025
Assets
Current Assets
Cash and cash equivalents$4,130,980 $3,783,413 
Accounts receivable212,540 181,004 
Merchandise inventory2,976,958 2,669,849 
Prepaid expenses and other252,941 240,837 
Total current assets7,573,419 6,875,103 
Property and equipment, net4,147,666 3,827,541 
Operating lease assets3,531,945 3,325,849 
Other long-term assets301,542 276,123 
Total assets$15,554,572 $14,304,616 
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable $2,653,741 $2,163,954 
Accrued expenses and other696,511 616,008 
Current operating lease liabilities735,528 702,025 
Accrued payroll and benefits376,760 274,877 
Income taxes payable210,971 180,083 
Current portion of long-term debt241,344 498,812 
Total current liabilities4,914,855 4,435,759 
Long-term debt776,843 1,016,897 
Non-current operating lease liabilities2,969,435 2,797,935 
Other long-term liabilities292,944 268,698 
Deferred income taxes295,492 209,249 
Commitments and contingencies
Stockholders’ Equity6,305,003 5,576,078 
Total liabilities and stockholders’ equity$15,554,572 $14,304,616 

6

Ross Stores, Inc.
Condensed Consolidated Statements of Cash Flows
Three Months Ended
($000, unaudited)May 2, 2026May 3, 2025
Cash Flows From Operating Activities
Net earnings$649,964 $479,249 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization132,599 115,938 
Stock-based compensation59,120 39,296 
Deferred income taxes34,065 22,209 
Change in assets and liabilities:
Merchandise inventory(345,988)(225,336)
Other current assets(50,547)(58,426)
Accounts payable262,115 67,182 
Other current liabilities (57,344)(173,946)
Income taxes153,136 139,086 
Operating lease assets and liabilities, net(2,104)1,351 
Other long-term, net 993 3,112 
Net cash provided by operating activities836,009 409,715 
Cash Flows From Investing Activities
Additions to property and equipment(208,954)(207,378)
Net cash used in investing activities(208,954)(207,378)
Cash Flows From Financing Activities
Issuance of common stock related to stock plans6,616 6,143 
Treasury stock purchased(134,171)(60,131)
Repurchase of common stock(318,750)(262,521)
Dividends paid(143,559)(133,300)
Payment of long-term debt(500,000)(700,000)
Net cash used in financing activities(1,089,864)(1,149,809)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents(462,809)(947,472)
Cash, cash equivalents, and restricted cash and cash equivalents:
Beginning of period4,661,973 4,796,462 
End of period$4,199,164 $3,848,990 
Reconciliations:
Cash and cash equivalents$4,130,980 $3,783,413 
Restricted cash and cash equivalents included in prepaid expenses and other21,137 17,050 
Restricted cash and cash equivalents included in other long-term assets47,047 48,527 
Total cash, cash equivalents, and restricted cash and cash equivalents:$4,199,164 $3,848,990 
Supplemental Cash Flow Disclosures
Interest paid$19,839 $35,939 
Income taxes paid, net$309 $334 
7

Source: View Original Filing on SEC EDGAR

FAQ

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

Ross Stores delivered strong first quarter results with sales of $6.0 billion, up 21% from 2025. Comparable store sales rose 17%, net earnings reached $650 million, and diluted EPS climbed 37% to $2.02, significantly above prior guidance of $1.60 to $1.67.

What earnings guidance did Ross Stores (ROST) give for the second quarter of 2026?

For the 13 weeks ending August 1, 2026, Ross Stores forecasts comparable store sales growth of 6% to 7%. If achieved, management projects earnings per share of $1.85 to $1.93, representing 19% to 24% growth compared to EPS of $1.56 in the prior year’s second quarter.

How has Ross Stores (ROST) updated its full-year fiscal 2026 outlook?

Ross Stores raised its fiscal 2026 outlook, now expecting same store sales growth of 6% to 7% on top of a 5% gain in 2025. Earnings per share are projected between $7.50 and $7.74, a 13% to 17% increase compared with $6.61 for the year ended January 31, 2026.

What drove Ross Stores’ (ROST) margin performance in Q1 2026?

First quarter operating margin was 13.4%, above the planned 11.8% to 12.1%. Management attributed this mainly to strong sales outperformance, with robust customer traffic, compelling merchandise assortments, effective marketing, and an improved in‑store experience contributing to better profitability.

How much stock did Ross Stores (ROST) repurchase in Q1 2026?

During the first quarter of fiscal 2026, Ross Stores repurchased 1.5 million shares of common stock for $319 million. These repurchases were made under a two‑year $2.55 billion authorization, and the company plans to buy back a total of $1.275 billion in shares during fiscal 2026.

What were Ross Stores’ (ROST) key income statement figures for Q1 2026?

For the quarter ended May 2, 2026, Ross Stores reported sales of $6,010,476,000 and operating income of $804,026,000. Net earnings were $649,964,000, basic earnings per share were $2.04, and diluted earnings per share were $2.02, all reflecting substantial growth over the prior year period.

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