Ross Stores Q2 sales rise 5 percent, earnings affected by tariffs

Ross Stores, Inc. reported earnings per share of 1.56 dollars for the second quarter ended August 2, 2025, on net income of 508 million dollars. These results were negatively impacted by approximately 11 cents per share in tariff-related costs. In comparison, the company reported earnings per share of 1.59 dollars on net income of 527 million dollars for the same quarter in 2024.

Total sales for the second quarter increased by 5 percent to 5.5 billion dollars, with comparable store sales up 2 percent compared to last year. For the first half of 2025, sales grew to 10.5 billion dollars, with comparable store sales up 1 percent.

CEO Jim Conroy noted that sales trends improved sequentially from the first quarter, with strong sales in May, a softening in June, and a "sharp" rebound in July. He added that while sales were in line with expectations, earnings modestly exceeded the company's guidance range, primarily due to lower-than-expected tariff-related costs. However, the company's operating margin for the quarter decreased to 11.5 percent, a 95-basis-point drop from the prior year, largely due to tariff-related costs.

Looking ahead, Conroy stated that the company remains "somewhat cautious" due to macroeconomic uncertainty, and is planning for comparable store sales growth of 2 percent to 3 percent for both the third and fourth quarters. The company's full-year earnings per share is now projected to be in the range of 6.08 dollars to 6.21 dollars, which includes an estimated 22 cents to 25 cents per share impact from announced trade policies. Conroy also noted that the company anticipates higher pricing across the retail sector, which will drive consumers to seek greater value, and that Ross Stores is focused on delivering high-quality merchandise to reinforce its value proposition and capture market share.

During the second quarter, Ross Stores repurchased 1.9 million shares of its common stock for a total of 262 million dollars and remains on track to buy back a total of 1.05 billion dollars for the fiscal year.