Ross Stores (NASDAQ:ROST) Issues Quarterly Earnings Results

Ross Stores (NASDAQ:ROST) announced its quarterly earnings data on Tuesday. The apparel retailer reported $2.00 earnings per share for the quarter, topping the consensus estimate of $1.90 by $0.10, Briefing.com reports. The business had revenue of $6.64 billion during the quarter, compared to the consensus estimate of $6.42 billion. Ross Stores had a return on equity of 36.75% and a net margin of 9.47%.Ross Stores’s revenue for the quarter was up 12.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.65 EPS.

Here are the key takeaways from Ross Stores’ conference call:

• Q4 momentum was strong — total sales rose 12% to $6.6B and comparable store sales climbed 9%, driven primarily by higher transactions and broad-based strength across categories (notably shoes and cosmetics) and regions.
• Management attributes the outperformance to merchandising, marketing and store/operational improvements — branded assortments, a successful holiday campaign, better in‑store execution and strong supply‑chain performance drove traffic gains and faster inventory turns.
• Store growth and inventory position look constructive — inventories were up 8% with packaway at 37% of inventory, the company opened 90 net new stores in 2025 and plans to open 110 new locations in 2026 (≈85 Ross, 25 dd’s) while targeting long‑term footprints of 2,900 Ross and 700 dd’s.
• Capital returns were increased — Ross completed a $2.1B buyback, announced a new $2.55B repurchase authorization and raised the quarterly dividend by 10% to $0.445, alongside solid FY results (sales $22.8B; EPS $6.61).
• 2026 guidance is constructive but mixed — Q1 comps of +7%–8% (EPS $1.60–$1.67) and FY comps of +3%–4% (EPS $7.02–$7.36) are offset by expected near‑term margin pressures from a recent DC opening, packaway timing and higher incentive costs, with management saying margin expansion remains possible over time.

Ross Stores Stock Performance

Shares of NASDAQ ROST traded up $14.83 during trading on Wednesday, reaching $212.47. 3,726,812 shares of the stock traded hands, compared to its average volume of 2,504,718. The stock has a market capitalization of $68.72 billion, a P/E ratio of 33.20, a price-to-earnings-growth ratio of 3.52 and a beta of 0.97. Ross Stores has a 52-week low of $122.36 and a 52-week high of $216.80. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.52 and a quick ratio of 0.90. The company has a 50-day moving average of $191.34 and a 200-day moving average of $170.94.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on ROST shares. UBS Group increased their price target on Ross Stores from $181.00 to $199.00 and gave the stock a “neutral” rating in a report on Tuesday, February 17th. Citigroup increased their target price on shares of Ross Stores from $188.00 to $224.00 and gave the stock a “buy” rating in a research note on Tuesday, February 10th. Evercore lifted their price target on shares of Ross Stores from $175.00 to $195.00 and gave the company an “outperform” rating in a research note on Friday, November 21st. Zacks Research lowered shares of Ross Stores from a “strong-buy” rating to a “hold” rating in a report on Monday. Finally, Telsey Advisory Group upgraded Ross Stores from a “market perform” rating to an “outperform” rating and raised their target price for the company from $220.00 to $240.00 in a research note on Wednesday. Seventeen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $204.00.

More Ross Stores News

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Q4 beat and upbeat guidance — Ross reported $2.00 EPS and $6.64B revenue (both above estimates), comp-store sales up ~9%, and provided Q1 and FY2026 EPS guidance above Street consensus, driving confidence in near-term growth. PR Newswire: Ross Stores Q4 Results
• Positive Sentiment: Large capital returns — the board approved a new two-year $2.55B repurchase authorization and raised the quarterly dividend by 10%, signaling strong cash flow and boosting buyback-driven EPS accretion expectations. PR Newswire: Buyback & Dividend
• Positive Sentiment: Analyst upgrades and price-target lifts — multiple firms raised ratings/targets (Goldman Sachs to $244 buy, Wells Fargo to $235 overweight, Guggenheim, Telsey upgrades), adding momentum and validating the print/guidance. Benzinga: Analyst Moves
• Neutral Sentiment: Off-price sector tailwind and expansion roadmap — coverage notes Ross is capturing mainstream share, plans ~110 new stores in 2026, and benefits from a “treasure-hunt” consumer trend; supportive for medium-term growth but execution/merchandise cadence remain watch points. MarketBeat: Off-Price Thesis
• Neutral Sentiment: Valuation commentary — some analysts and pieces flag that the strong quarter stretches valuation vs. peers, suggesting upside may be capped until growth proves durable. Seeking Alpha: Valuation Note
• Negative Sentiment: Insider and institutional selling items noted — recent filings show several insider sales and some large institutional reductions in the prior quarter, which could add selling pressure if they continue. QuiverQuant: Insider & Institutional Activity
• Negative Sentiment: Minor analyst downgrade — Zacks moved ROST from “strong-buy” to “hold,” a reminder some shops will wait for confirmation before re-rating higher. Zacks: Rating Change

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Virtus Advisers LLC bought a new stake in Ross Stores during the fourth quarter worth about $32,000. Quarry LP raised its holdings in shares of Ross Stores by 1,124.0% during the 4th quarter. Quarry LP now owns 306 shares of the apparel retailer’s stock valued at $55,000 after buying an additional 281 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in Ross Stores in the 4th quarter worth approximately $60,000. Quattro Advisors LLC bought a new stake in Ross Stores in the 4th quarter worth approximately $70,000. Finally, Johnson Financial Group Inc. boosted its stake in Ross Stores by 189.1% in the fourth quarter. Johnson Financial Group Inc. now owns 396 shares of the apparel retailer’s stock worth $71,000 after buying an additional 259 shares in the last quarter. Hedge funds and other institutional investors own 86.86% of the company’s stock.

Ross Stores Company Profile

Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.