Ross Stores Lifts FY26 Outlook After Q2 Beat; EPS $2.66 vs $1.85-$1.93
ROST sits 67% above its 52-week low of $143.39.
Summary
Ross Stores crushed Q2 expectations with 13% sales growth and EPS of $2.66, raised full-year guidance, and accelerated buybacks.
Key Events · Earnings and Guidance · ROST
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Q2 Results Beat Expectations
Sales rose 13% to $6.3B, comps up 10% on traffic, and EPS of $2.66 versus guidance of $1.85-$1.93. Net income was $851M, up from $508M last year.
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Tariff Refund Boost
Q2 included $253M in IEEPA tariff refunds, adding ~$0.60 to EPS. Excluding this, operating margin still rose 205 bps, above the 130-150 bps plan.
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Guidance Raised
FY26 EPS guidance increased to $8.61-$8.77. Q3 comps expected 6-7%, Q4 comps 4-5%, with Q3 EPS $1.75-$1.83 and Q4 EPS $2.17-$2.26.
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Store Expansion Accelerated
2026 new store opening plan increased to 115 locations (90 Ross, 25 dd's DISCOUNTS), up from prior plan.
Analysis · ROST · Trade & Services
A standout quarter for Ross Stores: sales climbed 13% to $6.3B, comps rose 10% on traffic, and EPS hit $2.66—far above the $1.85-$1.93 guidance. The beat was amplified by a $253M IEEPA tariff refund (~$0.60 EPS), but even excluding that, operating margin expanded 205 bps versus a 130-150 bps plan. Management raised second half and full-year guidance, now projecting FY26 EPS of $8.61-$8.77, and increased the store opening plan to 115 locations. The company also repurchased $319M of stock in Q2 and remains on track for $1.275B in FY26 buybacks. This is a strong operational quarter with clear momentum, though the tariff refund is a one-time benefit.
At the time of this filing, ROST was trading at $238.94 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $73.5B. The 52-week trading range was $143.39 to $257.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.