Ross Stores Q2 sales beat estimates on increased traffic, store expansion

Ross Stores

20/08/2026 21:10

Overview
U.S. off-price retailer's Q2 sales rose 13% yr/yr, beating analyst expectations
Q2 diluted EPS rose to $2.66, aided by $0.60 per share in tariff refunds
Company repurchased 1.4 mln shares for $319 mln in Q2

Outlook
Ross Stores raises 2026 EPS outlook to $8.61-$8.77, including $0.60 from tariff refunds
Company expects Q3 comparable sales to rise 6%-7%, Q4 comparable sales up 4%-5%
Ross Stores projects Q3 EPS of $1.75-$1.83 and Q4 EPS of $2.17-$2.26

Result Drivers
CUSTOMER TRAFFIC - Co said comparable store sales growth was primarily driven by increased customer traffic, including both new and existing customers
TARIFF REFUNDS - Q2 operating profit and EPS included a significant benefit from IEEPA tariff refunds
STORE EXPANSION - Opened 47 new stores in Q2 and increased full-year store opening plans

Company press release: ID:nPn1ql1Mla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$6.26 bln
$6.18 bln (18 Analysts)
Q2 EPS
 
$2.66
 
Q2 Net Income
 
$851.30 mln
 
Q2 EBIT
 
$1.10 bln
 
Q2 Pretax Profit
 
$1.13 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Ross Stores Inc is $265.00, about 12.9% above its August 19 closing price of $234.69
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 30 three months ago

Reuters Recommended Reads
Aug 19 - TJ Maxx, Marshalls 'self-inflicted' slowdown clouds TJX earnings beat
Aug 20 - Target lifts annual forecasts again as Fiddelke's turnaround takes root (August 19)
Aug 20 - Walmart's Q2 US same-store sales rise less than expected; FY outlook raised

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)