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Ross Stores Lifts Earnings Outlook After Second-Quarter Beat

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Ross Stores Lifts Earnings Outlook After Second-Quarter Beat

Ross Stores (ROST) raised its full-year earnings outlook as the off-price apparel and home fashion chain reported stronger-than-expected fiscal second-quarter results.

The company now anticipates earnings between $8.61 and $8.77 per share for fiscal 2026, Chief Executive Jim Conroy said in a statement late Thursday. The retailer previously projected the metric to be in a range of $7.50 to $7.74, compared with the current consensus on FactSet for $7.83.

"We believe we are well positioned to capture additional market share and drive profitable growth over the long term," Conroy said.

Ross Stores' EPS climbed to $2.66 for the three-month period ended Aug. 1 from $1.56 the year before, topping the average analyst estimate of $1.94. The results included an approximate $0.60 benefit from tariff refunds, the company said.

Revenue advanced 13% to $6.26 billion, ahead of Wall Street's view for $6.16 billion. Comparable store sales increased 10% in the fiscal second quarter, driven by customer traffic. Analysts had modeled for 7.7% comparable sales growth.

Ross Stores' stock was up 7% in after-hours trading. It's up 27% this year through market close Thursday.

Earlier in the week, Tuist Securities said second-quarter card trends looked the strongest for Ross Stores among off-price retailers. "But comparisons for the company get meaningfully more difficult in (the third quarter)," the brokerage said in an emailed note.

For the current quarter, Ross Stores expects EPS to be $1.75 to $1.83 and comparable sales to increase by 6% to 7%. The Street was looking for EPS of $1.75 and same store sales growth of 3.1%.

The company forecast EPS between $2.17 and $2.26 for the fiscal fourth quarter and same store sales to climb 4% to 5%. Analysts expect $2.11 and 2.4%, respectively.

"Despite facing significantly more challenging year-over-year comparisons in the back half, we are raising our outlook for both the third and fourth quarters," Conroy said.

Retail giant Walmart (WMT) issued a soft earnings outlook for the ongoing three-month period after its fiscal second-quarter US comparable sales growth decelerated more than the Street expected.

Target (TGT) lifted its full-year outlook on Wednesday as tariff refunds helped double the retailer's fiscal second-quarter earnings year over year.

On Wednesday, off-price retailer TJX (TJX) raised its full-year earnings outlook , though its third-quarter comparable sales guidance fell short of analysts' estimates. Burlington Stores (BURL) is scheduled to report its second-quarter results on Aug. 27.

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