Ross Stores (ROST) investor relations material

Executive summary

• Achieved a 21% increase in total sales to $6.0 billion and 37% EPS growth in Q1, with a 17% rise in comparable store sales, marking the highest comp growth in company history.

• Operating margin reached 13.4%, exceeding the planned range, driven by improved merchandise margin and occupancy leverage.

• Net income increased to $650 million from $479 million last year; EPS rose to $2.02 from $1.47.

• Growth was fueled by strong customer acquisition, effective merchandising, and broad-based performance across all categories and geographies.

• Opened 13 new Ross and 4 dd's DISCOUNTS stores, maintaining a plan for 5% unit growth in 2026.

Financial highlights

• Q1 total sales reached $6.0 billion, up from $5.0 billion in Q1 2025.

• Operating income was $804 million, up from $606 million.

• Net cash from operating activities was $836 million, up from $410 million.

• Repurchased 1.5 million shares for $319 million under a new $2.55 billion authorization.

• Paid $144 million in dividends and $500 million in long-term debt during the quarter.

Outlook and guidance

• Q2 comparable store sales projected to rise 6%-7%, with EPS guidance of $1.85-$1.93.

• Full-year 2026 comp sales expected to grow 6%-7%, with EPS forecasted at $7.50-$7.74, up 13%-17% from last year.

• Plan to open 110 new stores in 2026, including 85 Ross and 25 dd's DISCOUNTS.

• Guidance excludes potential tariff refunds due to uncertainty.