Ross Stores (ROST) Q2 2026 Earnings Call: 10% Comparable-Sales Growth, Guidance Raised
Source Tradingkey
Key Takeaways
- Ross Stores reported Q2 2026 sales of $6.3 billion, up 13% year over year, while comparable-store sales increased 10%, primarily due to higher transaction volumes.
- Net income rose to $851 million from $508 million. Diluted EPS increased to $2.66 from $1.56, including approximately $0.60 per share from tariff refunds.
- Gross margin expanded 625 basis points, including a 405-basis-point benefit from tariff refunds. Excluding that benefit, operating margin improved 205 basis points.
- Management raised its outlook for both Q3 and Q4. Full-year 2026 EPS is now projected at $8.61 to $8.77, including approximately $0.60 from tariff refunds.
- Ross Stores increased its 2026 new-store opening plan to 115 locations from 110, supported by stronger performance from recent openings in existing and newer markets.
- Management said customer growth was broad-based across income, age and ethnicity, with gains from new and lapsed customers alongside higher visit frequency and spending by existing customers.
Key Financial Data
| Metric | Q2 2026 | Prior-year period | Change / commentary |
|---|---|---|---|
| Total sales | $6.3 billion | — | Up 13% |
| Comparable-store sales | — | — | Up 10%, mainly driven by transactions |
| Net income | $851 million | $508 million | Increased year over year |
| Diluted EPS | $2.66 | $1.56 | Includes about $0.60 from tariff refunds |
| Gross margin | — | — | Expanded 625 basis points |
| Operating margin | — | — | Expanded 610 basis points; up 205 basis points excluding tariff refunds |
| Merchandise margin | — | — | Improved 110 basis points |
| SG&A rate | — | — | Deleveraged 15 basis points due to higher incentives |
| Ending inventory | — | — | Up 18% |
| Packaway inventory mix | 36% | 38% | Lower as a share of total inventory |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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