Ross Stores (ROST) Q2 2027 earnings summary

Executive summary

• Achieved 10% comparable store sales growth in Q2 2026, marking the second consecutive quarter of double-digit comp growth, with strong sales momentum throughout the quarter and July as the peak month.

• Total Q2 sales rose 13% year-over-year to $6.3 billion, driven by increased customer traffic, new and lapsed customer gains, higher frequency of visits, and increased spending from existing customers across all income and age groups.

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

• Opened 47 new stores in the quarter and raised full-year new store opening plans to 115 locations, with strong performance from recent openings, especially in the Northeast.

• dd's DISCOUNTS also delivered solid, broad-based sales growth.

Financial highlights

• Total Q2 sales grew 13% year-over-year to $6.3 billion; comparable store sales up 10%.

• 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 (205 basis points excluding tariff refunds); operating profit for Q2 was $1.1 billion, including $253 million from tariff refunds.

• Net income for Q2 was $851 million, up from $508 million last year; EPS rose to $2.66 from $1.56.

• First half 2026 sales up 17% to $12.3 billion; comparable store sales up 13%; EPS at $4.69 vs. $3.03 last year.

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.