#United States #Dublin #Ross Stores #Earnings Results #Fiscal 2026

Ross Stores Reports Exceptional Performance in Q1

On May 21, 2026, Ross Stores, Inc. (NASDAQ: ROST) unveiled its outstanding financial performance for the first quarter ending May 2, 2026. The retail giant achieved remarkable sales growth, showcasing a robust overall operational capability and strategical execution.

During the first quarter, Ross Stores saw total sales reach $6.0 billion, marking an impressive 21% increase from the previous year’s $4.98 billion. Particularly noteworthy was the surge in comparable store sales, which soared by a substantial 17%, improving from flat sales reported in the prior year. This significant uptick in sales can be attributed to effective marketing efforts, an appealing merchandise lineup, and a seamless shopping experience that resonated with customers.

In terms of profitability, the operating margin improved to 13.4%, significantly surpassing the company's anticipated margin range of 11.8% to 12.1%. Earnings per share (EPS) reached $2.02, up 37%, a figure that exceeds the previous guidance of $1.60 to $1.67. This robust performance was driven largely by heightened customer traffic, attributed in part to favorable tax refund consumer spending, enhancing the shopping experience at Ross locations.

Jim Conroy, CEO, remarked on the company's strong execution during the quarter, particularly in transitioning the Spring merchandise assortment, which contributed to the positive sales momentum. He pointed out that the effective marketing strategies and improved customer engagement were pivotal in driving the sales trend.

First Quarter Highlights

• - Sales: Increased by 21% to $6.0 billion
• - Comparable Store Sales: Up by 17% compared to the previous year
• - Net Income: Rose to $650 million, up from $479 million in Q1 2025
• - Earnings Per Share: Increased by 37% to $2.02, compared to $1.47 in the previous year

Shareholder Returns

In alignment with its strong performance, Ross Stores engaged in active share repurchase during the first quarter, buying back 1.5 million shares at a cost of $319 million, under the authorization of $2.55 billion approved in March 2026. Overall, Ross is projected to buy back a total of $1.275 billion in common stock throughout fiscal 2026.

Fiscal Outlook

Mr. Conroy expressed optimism about the company’s sustained momentum and strong foundational business elements. Moving forward, the company anticipates comparable store sales growth of 6% to 7% for the upcoming quarter ending August 1, 2026. Should sales align with expectations, Ross expects earnings per share to fall between $1.85 to $1.93, reflecting a growth rate of 19% to 24% compared to the last year’s second quarter results.

The company has also revised its full-year outlook for fiscal 2026, expecting same-store sales growth of 6% to 7%, building on a previous 5% growth rate from fiscal 2025. The anticipated earnings per share for the entire fiscal year is now projected to land between $7.50 to $7.74, marking a 13% to 17% increase from the $6.61 reported for the fiscal year ending January 31, 2026.

Mr. Conroy concluded by noting that the robust debut to the year was underscored by consistent performance across all business facets. As Ross Stores aims to further boost top-line growth, the focus will remain on disciplined execution. Looking ahead, the company is positioned to capture additional market share while ensuring profitable growth over the long haul.

The company will conduct a conference call on May 21, 2026, at 4:15 p.m. Eastern Time to elaborate on its quarterly results and future forecasts. A real-time audio webcast will be accessible on the Investors section of Ross Stores' website.

As Ross Stores continues its promising trajectory, the retail landscape watches closely, intrigued by the brand's ability to maintain such formidable growth in an ever-evolving market.