Ross Stores (ROST) Q1 2027 earnings summary

Executive summary

• Sales rose 21% year-over-year to $6.01 billion, with comparable store sales up 17%, marking the highest comp growth in company history.

• Net income increased 36% to $650 million, with EPS up 37% to $2.02.

• Operating margin reached 13.4%, up from 12.2% last year and exceeding planned range.

• Growth was driven by strong customer acquisition, effective merchandising, and broad-based category and geographic gains.

• 17 new stores opened in Q1, with a plan for 110 new stores in fiscal 2026.

Financial highlights

• Gross margin improved by 145 bps, driven by higher merchandise margin and lower occupancy costs.

• Operating income grew to $804 million, up from $606 million last year.

• Cash flow from operations was $836 million, up from $410 million year-over-year.

• Ended the quarter with $4.13 billion in cash and equivalents and $1.3 billion available under the credit facility.

• SG&A expenses increased due to higher store costs and incentive compensation.

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.

• CapEx expected at $1.1 billion for the year, focused on new stores, supply chain, and IT.

• Guidance excludes potential tariff refunds due to uncertainty.