Ross Stores raises annual profit forecast after Q1 sales beat on increased traffic

Ross Stores

21/05/2026 21:12

Overview

U.S. off-price retailer's fiscal Q1 sales rose 21%, beating analyst expectations

Comparable store sales for fiscal Q1 grew 17%, driven by higher customer traffic

Company repurchased 1.5 mln shares for $319 mln in fiscal Q1

Outlook

Ross Stores forecasts Q2 comparable store sales to rise 6% to 7%

Company expects Q2 earnings per share of $1.85 to $1.93

Ross Stores raises 2026 full-year EPS outlook to $7.50 to $7.74

Result Drivers

CUSTOMER TRAFFIC - Co said higher customer traffic was the main driver of strong sales, supported by compelling merchandise assortments, marketing initiatives, and improved in-store experience

TAX REFUNDS - Co said results benefited from higher consumer spending related to tax refunds

BROAD-BASED STRENGTH - Co reported solid momentum throughout the quarter with broad-based strength across the business

Company press release: ID:nPn53mVDa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$6.01 bln
$5.64 bln (17 Analysts)
Q1 EPS
$2.02
Q1 Net Income
$649.96 mln
Q1 comparable store sales Growth
17%
Q1 Operating Margin
13.4%
Q1 Pretax Profit
$837.48 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "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 $243.00, about 11.6% above its May 20 closing price of $217.79

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 26 three months ago

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.)