Ross Stores jumps after raising full-year profit guidance

Ross Stores

21/08/2026 10:25

Aug 21 (Reuters) - Ross Stores' ROST.O shares surged nearly 9% in premarket trading on Friday, after the value retailer raised annual guidance and projected quarterly sales growth above analyst expectations, signalling bargain-hunting demand despite a shaky economic backdrop.
Shares were last up 8.6% at $248.77 after falling over 3% in the last two sessions.
Here are some details:
The company raised its annual earnings per share forecast to the range of $8.61 to $8.77, compared with its previous outlook of $7.50 to $7.74.
It expects comparable store sales to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter, compared with analysts' expectations of a 3.1% and 2.6% rise, respectively.
The company had earlier forecast annual same-store sales to rise between 6% and 7%.
It reported second-quarter revenue of $6.26 billion, a rise of about 13% from a year earlier and beating analyst estimates of $6.18 billion, according to data compiled by LSEG.
In contrast, earlier this week, rival TJX Companies TJX.N reported a slowdown at its TJ Maxx and Marshalls discount apparel chains in the second quarter. 
Ross Stores reported an estimate-beating second-quarter EPS of $2.06, which includes an approximate $0.60 per share benefit from tariff refunds.
"Ross deliberately avoided being the first to raise prices and pass on tariff costs, even intentionally absorbing margin burdens last year. We view this as a savvy move that cemented its low-price leadership and resonated with its customer base," Morningstar analyst Brett Husslein said in a note. 
At least four brokerages, including J.P.Morgan and Barclays, raised their price targets on the stock after results.
As of last close, Ross Stores shares climbed more than 27% year-to-date, compared to a 11.6% jump in the S&P 500 .SPX

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Harikrishnan Nair)
((Shashwat.Chauhan@thomsonreuters.com;))