Ross Stores (NASDAQ:ROST) Issues Earnings Results, Beats Expectations By $0.29 EPS

Ross Stores (NASDAQ:ROST) posted its quarterly earnings data on Thursday. The apparel retailer reported $2.02 earnings per share for the quarter, beating analysts’ consensus estimates of $1.73 by $0.29, FiscalAI reports. The company had revenue of $6.01 billion during the quarter, compared to analysts’ expectations of $5.64 billion. Ross Stores had a net margin of 9.43% and a return on equity of 36.70%. The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.47 EPS. Ross Stores updated its FY 2026 guidance to 7.500-7.740 EPS and its Q2 2026 guidance to 1.850-1.930 EPS.

Here are the key takeaways from Ross Stores’ conference call:

• Ross Stores delivered a standout first quarter with total sales up 21%, comparable store sales up 17%, and EPS up 37% to $2.02. Management said the comp was driven mainly by transactions and broader customer traffic across demographics.
• Margins improved meaningfully, with operating margin expanding 120 basis points to 13.4%. The company cited higher merchandise margin, occupancy leverage, and lower distribution and freight costs as key drivers.
• Management raised full-year fiscal 2026 guidance after the strong quarter, now expecting EPS of $7.50-$7.74 and same-store sales growth of 6%-7%. Second-quarter guidance also calls for 6%-7% comps and EPS of $1.85-$1.93.
• Customer acquisition and marketing initiatives appear to be working, with double-digit customer growth across income levels, age groups, and geographies, including younger shoppers. Executives said the company is only early in a broader “flywheel” strategy linking marketing, merchandising, and stores.
• Ross continues aggressive expansion and capital returns, opening 17 stores in Q1 and planning about 110 openings this year, while also buying back $319 million of stock in the quarter. The company reiterated its plan to repurchase $1.275 billion of shares in 2026.

Ross Stores Trading Down 0.3%

ROST opened at $217.19 on Friday. Ross Stores has a fifty-two week low of $124.49 and a fifty-two week high of $231.16. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.58 and a quick ratio of 1.04. The company has a market cap of $69.97 billion, a price-to-earnings ratio of 32.86, a price-to-earnings-growth ratio of 2.88 and a beta of 0.87. The firm has a 50 day simple moving average of $218.62 and a 200 day simple moving average of $196.78.

Ross Stores Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 9th will be paid a dividend of $0.445 per share. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, June 9th. Ross Stores’s payout ratio is 26.93%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ROST. Zacks Research lowered shares of Ross Stores from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 2nd. The Goldman Sachs Group restated a “buy” rating on shares of Ross Stores in a report on Friday. JPMorgan Chase & Co. upped their price target on shares of Ross Stores from $248.00 to $251.00 and gave the company an “overweight” rating in a research report on Monday. Truist Financial started coverage on shares of Ross Stores in a research note on Monday. They set a “buy” rating and a $270.00 target price for the company. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Ross Stores in a report on Wednesday, April 8th. Seventeen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $219.11.

Trending Headlines about Ross Stores

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Ross Stores beat Q1 expectations, reporting EPS of $2.02 versus estimates around $1.73 and revenue of $6.01 billion versus $5.64 billion expected, signaling strong demand and execution. Ross Stores Reports Robust First Quarter Sales and Earnings Results, Significantly Exceeding Guidance
• Positive Sentiment: Management raised full-year guidance, including FY2026 EPS of $7.50 to $7.74 and comparable sales growth of 6% to 7%, both above prior expectations, which supports the stock’s move. Ross Stores Lifts Outlook as Sales Jump
• Positive Sentiment: Analysts remained constructive after the quarter, with William Blair reiterating a Buy rating and citing margin expansion and structural comp drivers. Dylan Carden Reiterates Buy on Ross Stores After Strong Q1 Beat, Margin Expansion, and Structural Comp Drivers
• Neutral Sentiment: Investor commentary noted that Ross Stores had an excellent quarter, but tougher year-over-year comparisons may slow momentum later in the year. Ross Stores: Q1 Was A Great Quarter, But There Are Tougher Comps Ahead
• Negative Sentiment: Broader retail commentary flagged tariff risks and cautious consumer spending trends, which could pressure off-price retailers if conditions soften. Ross Stores Balances Solid Quarter With Tariff Risks

Insider Buying and Selling at Ross Stores

In other Ross Stores news, CMO Karen Sykes sold 5,506 shares of the stock in a transaction on Wednesday, March 25th. The shares were sold at an average price of $213.40, for a total value of $1,174,980.40. Following the completion of the sale, the chief marketing officer owned 104,648 shares in the company, valued at $22,331,883.20. This trade represents a 5.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Michael J. Hartshorn sold 15,813 shares of the firm’s stock in a transaction dated Wednesday, March 25th. The stock was sold at an average price of $214.91, for a total transaction of $3,398,371.83. Following the sale, the chief operating officer owned 116,028 shares of the company’s stock, valued at approximately $24,935,577.48. This represents a 11.99% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 25,756 shares of company stock valued at $5,521,004. Corporate insiders own 2.10% of the company’s stock.

Hedge Funds Weigh In On Ross Stores

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Parkside Financial Bank & Trust boosted its position in Ross Stores by 2.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 2,448 shares of the apparel retailer’s stock valued at $441,000 after buying an additional 59 shares in the last quarter. Great Lakes Advisors LLC increased its position in shares of Ross Stores by 3.0% during the fourth quarter. Great Lakes Advisors LLC now owns 2,205 shares of the apparel retailer’s stock worth $397,000 after buying an additional 64 shares during the period. Haverford Trust Co increased its position in shares of Ross Stores by 16.7% during the fourth quarter. Haverford Trust Co now owns 672 shares of the apparel retailer’s stock worth $121,000 after buying an additional 96 shares during the period. L2 Asset Management LLC boosted its stake in Ross Stores by 6.6% during the fourth quarter. L2 Asset Management LLC now owns 1,604 shares of the apparel retailer’s stock worth $289,000 after acquiring an additional 100 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its stake in Ross Stores by 23.5% during the first quarter. Geneos Wealth Management Inc. now owns 615 shares of the apparel retailer’s stock worth $79,000 after acquiring an additional 117 shares in the last quarter. 86.86% of the stock is currently owned by institutional investors and hedge funds.

Ross Stores Company Profile

Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.