- First-quarter sales rose 21% to $6.01 billion, beating the $5.64 billion consensus
- Earnings per share of $2.02 were 17% above the $1.73 Wall Street expected
- Ross Stores raised its full-year 2026 same-store sales growth outlook to 6% to 7%
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Ross Stores stock jumps 7% after Q1 earnings crush estimates
(P1) Ross Stores Inc. (ROST) reported first-quarter earnings that significantly beat analyst expectations, with sales rising 21% to $6.01 billion and shares jumping nearly 7% in after-hours trading.
(P2) “Momentum was solid throughout the quarter, with broad-based strength across the business,” CEO Jim Conroy said. “Customer traffic was the primary driver of the strong sales trend.”
(P3)
(P4) The stock rose 6.8% in after-hours trading to over $232. The company's raised fiscal 2026 guidance for same-store sales growth of 6% to 7% suggests continued confidence in consumer spending.
Shopper Traffic and Expansion Drive Growth
The off-price retailer's performance was driven by a 17% surge in same-store sales, well above the 9.4% analysts had forecast. Conroy attributed the strong results to compelling merchandise, effective marketing, and an improved in-store experience, noting that sales also benefited from higher consumer spending related to tax refunds.
Operating margin for the quarter was 13.4%, exceeding the company's own forecast of 11.8% to 12.1% and indicating strong profitability alongside the sales growth.
Outlook and Store Growth
Looking ahead, Ross Stores issued a bullish forecast. For the second quarter, the company expects same-store sales to increase by 6% to 7% and earnings per share to be between $1.85 and $1.93, representing a 19% to 24% increase from the prior year.
The company also raised its full-year guidance for fiscal 2026. It now projects same-store sales growth of 6% to 7% and earnings per share in the range of $7.50 to $7.74.
Ross Stores continues to expand its physical footprint, ending the quarter with 2,282 locations after opening 17 new stores. The company plans to open approximately 110 new stores this fiscal year, a 5% increase in total locations.
The strong guidance and expansion plans signal that Ross Stores expects the healthy demand for its off-price apparel and home goods to continue. Investors will be watching to see if the company can maintain its momentum in the upcoming quarters, with the next earnings report expected in August.
This article is for informational purposes only and does not constitute investment advice.
[1] Ross Stores Sales Pop With Help From Tax Refunds - Barron's[2] Ross Stores likely to report higher Q1 earnings; these most accurate analysts revise forecasts ahead of earnings call[3] Ross Stores (ROST) Q1 earnings and revenues top estimates[4] Ross Stores (NASDAQ:ROST) reports bullish Q1 CY2026[5] Ross Stores, Inc. (ROST) Q1 2027 Earnings Call Transcript
