Ross Stores beats expectations with 21 percent sales increase in first quarter

US off-price retailer Ross Stores reported a 21 percent increase in total sales for the first quarter of fiscal 2026, reaching 6.0 billion dollars compared to 5.0 billion dollars in the prior year period.

The financial results for the 13-week quarter ended May 2, 2026, showed comparable store sales grew 17 percent against flat sales in 2025. Net income for the period rose to 650 million dollars, up from 479 million dollars last year. Earnings per share grew 37 percent to 2.02 dollars, significantly ahead of the projected guidance of 1.60 dollars to 1.67 dollars.

The operating margin reached 13.4 percent, exceeding the company forecast of 11.8 percent to 12.1 percent. Management attributed the margin performance primarily to the strong sales outperformance during the period.

Customer traffic drives quarterly momentum

Ross Stores chief executive officer, Jim Conroy, noted that momentum remained solid throughout the quarter with broad-based strength across the business. Conroy attributed the performance to the execution of the spring/summer 2026 assortment, which was later referred to as SS26.

“Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers,” Conroy stated. The executive also noted that results likely benefited from higher consumer spending related to tax refunds.

Retailer raises full year guidance

For the second quarter ending August 1, 2026, Ross Stores forecasts comparable sales to increase by 6 percent to 7 percent. If sales meet this projection, EPS is expected to be between 1.85 dollars and 1.93 dollars, representing growth of 19 percent to 24 percent compared to 1.56 dollars for the second quarter ended August 2, 2025.

Based on the first quarter performance, the retailer has adjusted its full year outlook. The company now projects fiscal 2026 full year COMP growth of 6 percent to 7 percent, compared to a 5 percent gain in 2025.

Full year EPS is now expected to be in the range of 7.50 dollars to 7.74 dollars, representing an increase of 13 percent to 17 percent compared to 6.61 dollars for the fiscal year ended January 31, 2026.