Strong customer traffic, double-digit comparable sales growth and a sharply higher full-year outlook helped Ross Stores deliver a standout second quarter.
Ross Stores (ROST) shares moved higher after the off-price retailer delivered second-quarter results that exceeded Wall Street expectations on both revenue and earnings.
Ross reported quarterly revenue of approximately $6.27 billion, topping analyst estimates of $6.18 billion. Earnings came in at $2.66 per share, significantly ahead of expectations of $1.94 per share.
Total revenue increased 13% year-over-year, while comparable store sales jumped 10%, driven primarily by stronger customer traffic. CEO Jim Conroy said the growth reflected both an increase in new customers and greater engagement from existing shoppers.
The results suggest Ross continues to benefit from consumers searching for value while maintaining strong merchandise offerings and improving its in-store experience.
Perhaps the biggest positive for investors was the company’s substantially improved outlook. Ross raised its fiscal 2026 earnings guidance from $7.50 to $7.74 per share to a new range of $8.61 to $8.77, well above the $7.79 analyst estimate.
Management also expects third-quarter earnings of $1.75 to $1.83 per share and fourth-quarter earnings of $2.17 to $2.26, with both forecasts exceeding current Wall Street expectations.
Ross is also returning significant capital to shareholders. The company repurchased 1.4 million shares for $319 million during the quarter and remains on track to buy back $1.275 billion of stock during fiscal 2026.
With accelerating comparable sales, rising traffic and a major earnings guidance increase, Ross Stores’ second-quarter report provided investors with several reasons for optimism heading into the second half of the year.
