Aug 20, 2026, 4:11 PM ETConsumer Cyclical

Ross Stores — Second Quarter 2026 Earnings Summary

ROSTROSS STORES INC

Financial Performance

Total sales for the second quarter increased 13% to $6.3 billion, up from $5.5 billion in the prior year period.
Comparable store sales rose 10% for the quarter, following a 2% gain in the prior year.
Operating profits for the second quarter were $1.1 billion, including approximately $253 million in IEEPA tariff refunds.
Operating margin increased 610 basis points year-over-year; excluding the tariff refund benefit, the margin increased by 205 basis points.
Net income was $851 million for the second quarter, compared to $508 million in the prior year.
Earnings per share (diluted) were $2.66 for the second quarter, compared to $1.56 in the prior year; this includes an approximate $0.60 per share benefit from tariff refunds.
For the first six months of fiscal 2026, sales increased 17% to $12.3 billion, up from $10.5 billion in the prior year.
Comparable store sales for the first six months were up 13%.
Net income for the first six months was $1.5 billion, compared to $987 million in the prior year.
Earnings per share (diluted) for the first six months were $4.69, compared to $3.03 in the prior year.
Cash and cash equivalents were $4.29 billion as of August 1, 2026, compared to $3.85 billion as of August 2, 2025.
Merchandise inventory was $3.09 billion as of August 1, 2026, compared to $2.61 billion as of August 2, 2025.
Total debt (current and long-term) was $1.02 billion as of August 1, 2026, compared to $1.52 billion as of August 2, 2025.

Raised second half fiscal 2026 comparable store sales guidance to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter.
Projected earnings per share for the third quarter to be $1.75 to $1.83 and for the fourth quarter to be $2.17 to $2.26.
Increased full-year fiscal 2026 earnings per share guidance to a range of $8.61 to $8.77, which includes an approximate $0.60 per share benefit from IEEPA tariff refunds.
Increased the 2026 new store opening plan to 115 locations, consisting of approximately 90 Ross Dress for Less stores and 25 dd's DISCOUNTS stores.

Opened 47 new stores during the second quarter, comprising 35 Ross locations and 12 dd's DISCOUNTS locations.
The company operates 1,952 Ross Dress for Less locations and 376 dd's DISCOUNTS locations as of the reporting period.

Comparable store sales growth was primarily driven by customer traffic, supported by an increase in new customers and higher engagement from existing customers.
Management stated the company is well-positioned to capture additional market share and drive profitable growth over the long term.

Forward-looking statements identify risks including adverse changes in the macroeconomic environment, government regulations, geopolitical conditions, and conflicts.
Risks include increased costs of fuel and consumer necessities, continuing inflation, and changes in consumer confidence or spending behavior.
Potential impacts from tariff increases, changes in U.S. trade or tax policy, and competitive pressures in the retailing industry.
Risks related to supply chain disruptions, inventory management, labor shortages, and cybersecurity threats.

CEO Jim Conroy described the results as "stellar sales and earnings growth," attributing success to compelling merchandise, marketing initiatives, and in-store experience enhancements.
Management expressed confidence that current actions are driving performance and building on early successes.
The tone indicated strong momentum entering the Fall season despite facing more challenging year-over-year comparisons in the back half of the year.

During the second quarter, the company repurchased 1.4 million shares of common stock for an aggregate price of $319 million.
The company remains on track to buy back a total of $1.275 billion in common stock during fiscal 2026 under a $2.55 billion authorization approved in March 2026.
The company will host a conference call on August 20, 2026, at 4:15 p.m. Eastern time to discuss results and outlook.