Ross Stores (NASDAQ:ROST) Posts Earnings Results, Beats Estimates By $0.10 EPS

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

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 Down 2.3%

Shares of ROST stock opened at $197.64 on Wednesday. The stock has a 50 day moving average of $191.34 and a 200-day moving average of $170.94. The firm has a market cap of $63.93 billion, a PE ratio of 30.88, a price-to-earnings-growth ratio of 3.52 and a beta of 0.97. The company has a quick ratio of 0.90, a current ratio of 1.52 and a debt-to-equity ratio of 0.17. Ross Stores has a 12 month low of $122.36 and a 12 month high of $206.40.

Ross Stores News Roundup

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

• Positive Sentiment: Beat on Q4 results — Ross reported Q4 EPS of $2.00 and revenue of $6.64B, topping estimates and showing 12% revenue growth and a 9% comparable‑store sales gain. This drove upbeat commentary about a strong holiday and spring start. MarketBeat: Ross Q4 Results
• Positive Sentiment: Raised full‑year guidance — Ross updated FY26 EPS to $7.02–7.36 vs. consensus ~6.76, and provided Q1 EPS guidance roughly in line with estimates; management also announced a new two‑year repurchase authorization and a 10% dividend increase. These items support longer‑term earnings and capital‑returns expectations. PR Newswire: Ross Press Release
• Positive Sentiment: Market share and traffic momentum — Coverage highlights Ross’s ability to pull shoppers from mainstream retailers and describes a “very strong” start to spring, supporting upside to same‑store sales and margins. PYMNTS: Market Share Gain
• Neutral Sentiment: Analyst price‑target upgrades — Barclays raised its price target to $221 and kept an overweight view, indicating analyst conviction on the stock’s longer‑term upside even as near‑term volatility persists. Benzinga: Barclays PT Raise
• Neutral Sentiment: Full earnings detail and call transcripts available — Investors can review the earnings call and transcripts for color on inventory, margin outlook and promotional strategy to judge sustainability of current tailwinds. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: Analyst downgrade and profit‑taking — Zacks cut Ross from “strong‑buy” to “hold,” which can prompt short‑term selling; combined with recent run‑up to near‑year‑high levels, investors are taking profits. Zacks: Rating Change
• Negative Sentiment: Broader market weakness — Pre‑market/futures softness and mixed macro sentiment reduced appetite for retail cyclicals today, muting some of the positive reaction to Ross’s report. Benzinga: Stocks to Watch

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on ROST shares. Deutsche Bank Aktiengesellschaft set a $221.00 price target on shares of Ross Stores in a research note on Thursday, January 8th. Wells Fargo & Company boosted their price objective on shares of Ross Stores from $180.00 to $200.00 and gave the stock an “overweight” rating in a report on Tuesday, December 16th. Wall Street Zen raised shares of Ross Stores from a “hold” rating to a “buy” rating in a research report on Saturday, November 15th. Bank of America lifted their price objective on shares of Ross Stores from $175.00 to $200.00 and gave the company a “buy” rating in a research report on Friday, November 21st. Finally, The Goldman Sachs Group upped their price objective on shares of Ross Stores from $190.00 to $214.00 and gave the stock a “buy” rating in a report on Tuesday, February 10th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $196.67.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Parkside Financial Bank & Trust increased its stake in shares of Ross Stores by 2.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 2,448 shares of the apparel retailer’s stock valued at $441,000 after buying an additional 59 shares during the period. Great Lakes Advisors LLC boosted its stake in shares of Ross Stores by 3.0% during the 4th 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 last quarter. Haverford Trust Co raised its holdings in Ross Stores by 16.7% during the fourth quarter. Haverford Trust Co now owns 672 shares of the apparel retailer’s stock worth $121,000 after acquiring an additional 96 shares in the last quarter. L2 Asset Management LLC grew its stake in Ross Stores by 6.6% in the fourth quarter. L2 Asset Management LLC now owns 1,604 shares of the apparel retailer’s stock valued at $289,000 after purchasing an additional 100 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its stake in Ross Stores by 23.5% in the first quarter. Geneos Wealth Management Inc. now owns 615 shares of the apparel retailer’s stock valued at $79,000 after buying an additional 117 shares during the period. Institutional investors own 86.86% of the company’s stock.

About Ross Stores

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.