Ross Stores Reports Record Fourth Quarter Earnings and Enhanced Shareholder Returns

On March 3, 2026, Ross Stores, Inc. (Nasdaq: ROST) shared its financial performance for the fourth quarter and the fiscal year ending January 31, 2026, showcasing remarkable growth in sales and profitability, exceeding their forecasts significantly. The company's total sales for the fourth quarter surged by 12%, reaching $6.6 billion compared to $5.9 billion from the previous fiscal year. Additionally, comparable store sales rose robustly by 9%, building on a solid 3% increase from last year. This success aligns with the company’s strategic initiatives that focus on delivering appealing merchandise assortments and enhancing customer engagement through innovative marketing campaigns.

The operating margin also outperformed expectations, standing at 12.3%, which surpassed the anticipated range of 11.5% to 11.8%. Notably, earnings per share for this quarter hit $2.00, exceeding guidance which was estimated between $1.77 and $1.85. This performance marked a significant increase from $1.79 per share in the same quarter last year, excluding a $0.14 per share gain recorded from the sale of a packaway facility in 2024, leading to a substantial year-on-year growth of approximately 21%.

For the complete fiscal year 2025, Ross Stores achieved record sales totaling $22.8 billion, up 8% from $21.1 billion in 2024. Comparable store sales exhibited a growth of 5% alongside a commendable 3% increase from the previous year. The final net income of $2.1 billion mirrored the performance of the previous fiscal year, while earnings per share rose to $6.61 from $6.32, marking a significant 10% growth when adjusted for various factors, including the earlier noted gains and tariff impacts.

In remarks made by Jim Conroy, CEO of Ross Stores, he emphasized the acceleration of business momentum, especially during the fourth quarter. He attributed this success to strategic in-store initiatives, enhanced customer engagement, and compelling merchandise offerings that resonated well with consumers during the holiday season. Conroy also highlighted the challenges faced during the first half of the year due to a volatile macroeconomic landscape but noted that improvements in underlying trends became evident as the year progressed.

As part of their commitment to shareholder value, Ross Stores announced a new two-year stock repurchase authorization of $2.55 billion for fiscal years 2026 and 2027. This new program reflects a 21% increase compared to the previous two-year repurchase program. In conjunction with enhancing the repurchase program, the company's Board of Directors has approved a 10% increment in the quarterly cash dividend to $0.445 per share, which will be payable on March 31, 2026. This move signals Ross's commitment to returning excess cash to shareholders while continuing to fund growth initiatives.

Looking ahead, the company is optimistic about the Spring season's promising beginnings, forecasting comparable store sales to increase between 7% and 8% for the first quarter ending May 2, 2026. Should sales align with the forecast, earnings per share are projected to range between $1.60 and $1.67, compared to $1.47 for the same quarter last year. Furthermore, for the full year ending January 30, 2027, same-store sales are expected to grow by 3% to 4% based on last year’s 5% increase.

Conroy concluded with confidence, reflecting on the previous year’s achievements and strategic progress across various business domains. He expressed optimism for the upcoming fiscal year, citing a solid operational foundation, a structured approach toward growth strategies, and the intent to capture additional market share within the retail landscape.

Ross Stores will hold a conference call on March 3, 2026, at 4:15 p.m. Eastern Time to delve deeper into the fourth quarter results and fiscal year outlook, providing shareholders and interested parties with insights into the company’s financial trajectory.