Ross Stores (ROST) Q2 2027 earnings summary

Executive summary

• Q2 2026 sales rose 13% year-over-year to $6.3 billion, with comparable store sales up 10% driven by increased customer traffic, basket size, and engagement from both new and existing customers.

• Net income for Q2 was $851 million, up from $508 million last year; diluted EPS reached $2.66, a 71% increase year-over-year, including a $0.60 benefit from $253 million in IEEPA tariff refunds.

• Opened 47 new stores in Q2 and raised the annual store opening plan to 115 new locations, reflecting strong expansion momentum.

• Growth was broad-based across merchandise categories and geographies, with home and cosmetics leading, and the Midwest as the strongest region.

• dd's DISCOUNTS also delivered solid, broad-based sales growth, nearly matching Ross on a two-year basis.

Financial highlights

• Total Q2 sales grew 13% year-over-year to $6.3 billion, with comparable store sales up 10% (7% traffic, 3% basket).

• Gross margin improved by 625 basis points, including a 405 basis point benefit from tariff refunds; merchandise margin up 110 basis points.

• Operating margin increased 610 basis points to 17.6% (205 basis points excluding tariff refunds).

• Net income for Q2 was $851 million, EPS $2.66; first half 2026 sales up 17% to $12.3 billion, EPS at $4.69.

• Cash provided by operating activities for the first six months was $1.71 billion, up $634 million year-over-year; ended Q2 with $4.3 billion in unrestricted cash.

Outlook and guidance

• Raised outlook for Q3 and Q4 2026: Q3 comp sales expected to rise 6%-7%, EPS $1.75-$1.83; Q4 comp sales up 4%-5%, EPS $2.17-$2.26.

• Full-year 2026 EPS forecasted at $8.61-$8.77, up from $6.61 last year, including $0.60 per share from tariff refunds.

• Planning to open 115 stores in 2026, up from prior guidance of 110, with 51 openings in Q3.

• Capital expenditures for fiscal 2026 projected at $1.1 billion, focused on new stores, supply chain, and IT investments.