Ross Stores (ROST) Q4 2026 earnings summary

Executive summary

• Fourth quarter sales grew 12% to $6.6 billion, with comparable store sales up 9% year-over-year, significantly exceeding expectations due to strong holiday performance and broad-based growth across all merchandise categories and regions.

• Q4 operating margin reached 12.3%, surpassing guidance of 11.5% to 11.8%.

• Q4 earnings per share were $2.00, up from $1.79 last year, exceeding guidance and including a $0.14 one-time gain; excluding this, EPS grew 21%.

• Full-year sales reached a record $22.8 billion, up 8% year-over-year, with comparable store sales up 5%, net income of $2.1 billion, and EPS of $6.61.

• Business momentum accelerated in the back half of the year, driven by merchandising, marketing, and in-store initiatives.

Financial highlights

• Q4 total sales: $6.6 billion, up 12% year-over-year; comparable sales up 9%.

• Q4 net income: $646 million, up from $587 million last year; EPS: $2.00, up from $1.79.

• Full-year sales: $22.8 billion (+8%); comparable sales up 5% on top of 3% prior-year growth.

• Operating margin for Q4: 12.3% (excluding prior year benefit, up 95 bps); full-year margin: 11.9%.

• Inventory up 8% year-over-year; packaway inventory at 37% of total, down from 41%.

Outlook and guidance

• Q1 2026 guidance: comparable sales up 7%-8%, total sales up 10%-12%, EPS $1.60-$1.67.

• Full-year 2026 guidance: same store sales up 3%-4%, EPS $7.02-$7.36, total sales up 5%-7%.

• Operating margin expected at 12%-12.3% for 2026, with higher merchandise margin and lower distribution costs.

• 110 new stores planned for 2026 (85 Ross, 25 dd's DISCOUNTS), representing 5% store base growth.

• Capital expenditures projected at $1.1 billion for 2026.