Ross Stores Beats Earnings, Misses Full-Year Guidance

Ross Stores (ROST), ranked by market capitalization, reported its fiscal 2026 Q4 earnings on Mar 03rd, 2026. The company exceeded expectations, with GAAP EPS of $2.00 beating estimates by $0.09 and revenue of $6.64B surpassing forecasts by $200M. Guidance for 2026 reflects optimism, with annual same-store sales projected to rise 3%–4%, outpacing Wall Street’s 3.05% estimate.

Revenue

The total revenue of Ross Stores increased by 12.2% to $6.64 billion in 2026 Q4, up from $5.91 billion in 2025 Q4.

Earnings/Net Income

Ross Stores's EPS rose 12.2% to $2.02 in 2026 Q4 from $1.80 in 2025 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $645.87 million in 2026 Q4, marking 10.1% growth from $586.78 million in 2025 Q4. The EPS and net income growth demonstrate robust operational performance.

Price Action

The stock price of Ross Stores has edged down 0.56% during the latest trading day, has edged down 1.45% during the most recent full trading week, and has climbed 5.97% month-to-date.

Post-Earnings Price Action Review

Following the release of Q4 results, Ross Stores' stock exhibited mixed short-term volatility but maintained a positive monthly trend. While intraday and weekly declines suggest cautious investor sentiment, the 5.97% monthly gain indicates underlying confidence in the company’s earnings resilience. Analysts note that the stock’s performance aligns with broader retail sector trends, where discounted retailers are benefiting from macroeconomic pressures.

CEO Commentary

Jim Conroy, Chief Executive Officer, highlighted Ross Stores’ Q4 2025 performance, noting a 12% sales growth driven by "compelling merchandise assortments," improved customer engagement via new marketing campaigns, and successful in-store initiatives. He emphasized broad-based strength across regions and categories, including strong growth in shoes, cosmetics, and the Midwest and Mountain regions. Strategic priorities include expanding store footprints (85 Ross, 25 dd’s DISCOUNTS in 2026), enhancing merchandising and supply chain efficiency, and

Guidance

Ross Stores forecast annual same-store sales to rise 3%–4% in 2026, exceeding Wall Street’s 3.05% estimate. The company also anticipates first-quarter same-store sales growth of 7%–8% and EPS of $1.60–$1.67, above analyst expectations. However, full-year EPS guidance of $7.02–$7.36 falls below the midpoint of Wall Street’s estimates, reflecting cautious capital allocation amid macroeconomic uncertainties.

Additional News

Ross Stores has emphasized a "very strong start" to the spring shopping season, reinforcing its position as a beneficiary of the retail rebound. Management attributed this momentum to strategic pricing, expanded store footprints, and improved customer engagement. The company also highlighted its resilience amid U.S. tariffs and inflationary pressures, noting that late-2025 holiday sales and spring 2026 demand have offset earlier challenges. Analysts view these developments as a positive indicator for the broader retail sector, where consumer preference for value-driven shopping is intensifying.