Ross Stores (NASDAQ:ROST) Releases Earnings Results, Beats Estimates By $0.29 EPS

Posted by Patrick Bannon on May 23rd, 2026

Ross Stores (NASDAQ:ROST – Get Free Report) released its quarterly earnings data on Thursday. The apparel retailer reported $2.02 EPS for the quarter, beating analysts’ consensus estimates of $1.73 by $0.29, FiscalAI reports. Ross Stores had a net margin of 9.74% and a return on equity of 39.02%. The company had revenue of $6.01 billion during the quarter, compared to analyst estimates of $5.64 billion. During the same period last year, the business earned $1.47 earnings per share. Ross Stores’s revenue was up 20.6% compared to the same quarter last year. Ross Stores updated its FY 2026 guidance to 7.500-7.740 EPS and its Q2 2026 guidance to 1.850-1.930 EPS.

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

Ross Stores delivered a standout first quarter with total sales up 21%, comparable store sales up 17%, and EPS up 37% to $2.02. Management said the comp was driven mainly by transactions and broader customer traffic across demographics.
Margins improved meaningfully, with operating margin expanding 120 basis points to 13.4%. The company cited higher merchandise margin, occupancy leverage, and lower distribution and freight costs as key drivers.
Management raised full-year fiscal 2026 guidance after the strong quarter, now expecting EPS of $7.50-$7.74 and same-store sales growth of 6%-7%. Second-quarter guidance also calls for 6%-7% comps and EPS of $1.85-$1.93.
Customer acquisition and marketing initiatives appear to be working, with double-digit customer growth across income levels, age groups, and geographies, including younger shoppers. Executives said the company is only early in a broader “flywheel” strategy linking marketing, merchandising, and stores.
Ross continues aggressive expansion and capital returns, opening 17 stores in Q1 and planning about 110 openings this year, while also buying back $319 million of stock in the quarter. The company reiterated its plan to repurchase $1.275 billion of shares in 2026.

Ross Stores Trading Up 8.1%

ROST stock opened at $234.81 on Friday. The company has a market capitalization of $75.64 billion, a PE ratio of 32.79, a price-to-earnings-growth ratio of 2.87 and a beta of 0.87. Ross Stores has a one year low of $124.49 and a one year high of $235.80. The company’s 50 day moving average price is $219.06 and its two-hundred day moving average price is $197.05. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.04 and a current ratio of 1.58.

Ross Stores Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Tuesday, June 9th will be paid a dividend of $0.445 per share. The ex-dividend date of this dividend is Tuesday, June 9th. This represents a $1.78 annualized dividend and a dividend yield of 0.8%. Ross Stores’s dividend payout ratio (DPR) is 26.93%.

Insiders Place Their Bets

In other Ross Stores news, Director Patricia H. Mueller sold 1,881 shares of Ross Stores stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $213.13, for a total transaction of $400,897.53. Following the transaction, the director directly owned 2,159 shares of the company’s stock, valued at approximately $460,147.67. This trade represents a 46.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Michael J. Hartshorn sold 15,813 shares of Ross Stores stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $214.91, for a total transaction of $3,398,371.83. Following the transaction, the chief operating officer directly owned 116,028 shares in the company, valued at $24,935,577.48. This trade represents a 11.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 25,756 shares of company stock valued at $5,521,004. 2.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ROST. Parkside Financial Bank & Trust increased its stake in shares of Ross Stores by 2.5% in the fourth quarter. Parkside Financial Bank & Trust now owns 2,448 shares of the apparel retailer’s stock worth $441,000 after buying an additional 59 shares during the period. Great Lakes Advisors LLC increased its stake in shares of Ross Stores by 3.0% in the fourth quarter. Great Lakes Advisors LLC now owns 2,205 shares of the apparel retailer’s stock worth $397,000 after buying an additional 64 shares during the period. Haverford Trust Co increased its stake in shares of Ross Stores by 16.7% in the fourth quarter. Haverford Trust Co now owns 672 shares of the apparel retailer’s stock worth $121,000 after buying an additional 96 shares during the period. L2 Asset Management LLC increased its stake in shares of Ross Stores by 6.6% in the fourth quarter. L2 Asset Management LLC now owns 1,604 shares of the apparel retailer’s stock worth $289,000 after buying an additional 100 shares during the period. Finally, Geneos Wealth Management Inc. increased its stake in shares of Ross Stores by 23.5% in the first quarter. Geneos Wealth Management Inc. now owns 615 shares of the apparel retailer’s stock worth $79,000 after buying an additional 117 shares during the period. 86.86% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently commented on ROST shares. UBS Group raised their price objective on shares of Ross Stores from $227.00 to $232.00 and gave the company a “neutral” rating in a research report on Friday. Weiss Ratings restated a “buy (b)” rating on shares of Ross Stores in a research report on Wednesday, April 8th. The Goldman Sachs Group reiterated a “buy” rating and set a $270.00 target price on shares of Ross Stores in a research report on Friday. JPMorgan Chase & Co. lifted their target price on shares of Ross Stores from $248.00 to $251.00 and gave the company an “overweight” rating in a research report on Monday, May 18th. Finally, Barclays lifted their target price on shares of Ross Stores from $205.00 to $221.00 and gave the company an “overweight” rating in a research report on Monday, March 2nd. Sixteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $230.88.

View Our Latest Stock Analysis on Ross Stores

Key Ross Stores News

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

Positive Sentiment: Ross Stores reported Q1 EPS of $2.02, easily topping estimates, while revenue of $6.01 billion also exceeded forecasts; same-store sales jumped 17% and revenue rose 20.6% year over year. Ross Stores Reports Robust First Quarter Sales and Earnings Results, Significantly Exceeding Guidance
Positive Sentiment: The company raised full-year EPS guidance to $7.50-$7.74 and increased its comparable-sales outlook to 6%-7%, signaling continued momentum after a strong quarter. Ross Stores Lifts Outlook as Sales Jump
Positive Sentiment: Analysts turned more bullish after the beat, with Citigroup lifting its price target to $270 and other firms raising forecasts, reinforcing the post-earnings rally. These Analysts Boost Their Forecasts On Ross Stores After Better-Than-Expected Q1 Results
Positive Sentiment: Multiple market commentaries highlighted Ross Stores as a beneficiary of consumer demand for value and noted the stock hitting a 52-week high after the earnings release. Why Ross Stores Stock Climbed Today

Ross Stores Company Profile

(Get Free Report)

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.