ROSS Stores, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 21 May 2026: press release. Guidance figures: 2 raised, 2 new. The quarter’s numbers.

Key takeaways

Sales rose 21% on 17% comparable growth: Total sales rose 21% to $6.0 billion from $5.0 billion. Comparable store sales rose 17% against flat sales a year earlier. Net income was $650 million against $479 million. Source
Customer traffic was the main driver: Management said customer traffic was the primary driver of the sales trend. Source
EPS rose 37% above quarterly guidance: Diluted EPS was $2.02, up 37% from $1.47, and above the $1.60 to $1.67 guidance range given for the quarter. Source
Spring assortment transition cited: Management attributed results partly to the transition of the Spring assortment and to merchandise assortments that shoppers responded to. Source
Momentum solid throughout the quarter: Management said momentum was solid throughout the quarter, with broad-based strength across the business. Source
Operating margin 13.4% above plan: Operating margin was 13.4% against a plan of 11.8% to 12.1%, which management said came primarily from sales outperformance. Source
Repurchased $319 million of stock: The company repurchased 1.5 million shares for $319 million under a two-year $2.55 billion authorization approved by its Board in March 2026. Source
Full-year guidance raised on results: Management said it raised fiscal 2026 guidance based on first quarter results and second quarter guidance. Source

“We achieved outstanding sales and earnings results in the first quarter with superb execution throughout the business, especially the transition of our Spring assortment.”
Jim Conroy, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
Comparable store sales, second quarter Source	13 weeks ending August 1, 2026	6% to 7%	New
Earnings per share, second quarter Source	13 weeks ending August 1, 2026	$1.85 to $1.93	New
Comparable store sales, fiscal 2026 Source	fiscal 2026	6% to 7%	Raised from 3% to 4%
Earnings per share, fiscal 2026 Source	fiscal 2026	$7.50 to $7.74	Raised from $7.02 to $7.36
Share repurchases, fiscal 2026 Source	fiscal 2026	$1.275 billion

What changed from last quarter

Guidance raised: Fiscal 2026 comparable store sales growth raised to 6% to 7% from 3% to 4%. Source
Guidance raised: Fiscal 2026 EPS raised to $7.50 to $7.74 from $7.02 to $7.36. Source
New guidance: Second quarter comparable store sales and EPS guidance issued for the first time. Source
Ended: First quarter guidance period closed, with EPS of $2.02 against guidance of $1.60 to $1.67. Source

Results and growth drivers

Sales rose 21% on 17% comparable growth: Total sales rose 21% to $6.0 billion from $5.0 billion. Comparable store sales rose 17% against flat sales a year earlier. Net income was $650 million against $479 million. Source
Customer traffic was the main driver: Management said customer traffic was the primary driver of the sales trend. Source
EPS rose 37% above quarterly guidance: Diluted EPS was $2.02, up 37% from $1.47, and above the $1.60 to $1.67 guidance range given for the quarter. Source

Products and customers

Spring assortment transition cited: Management attributed results partly to the transition of the Spring assortment and to merchandise assortments that shoppers responded to. Source
Marketing and store experience drew shoppers: Management cited higher customer acquisition and engagement from ongoing marketing initiatives, and an improved in-store experience, as resonating with shoppers. Source

“Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers.”
Jim Conroy, Chief Executive Officer

Demand and momentum

Momentum solid throughout the quarter: Management said momentum was solid throughout the quarter, with broad-based strength across the business. Source
Tax refund spending helped results: Management said results also benefited from higher consumer spending tied to tax refunds. No amount was given. Source
Exit momentum described as solid: Management said the company exited the first quarter with solid momentum and that underlying business fundamentals remain very strong. Source

Costs, margins and pricing

Operating margin 13.4% above plan: Operating margin was 13.4% against a plan of 11.8% to 12.1%, which management said came primarily from sales outperformance. Source
Cost of goods and SG&A rose: Cost of goods sold was $4.23 billion against $3.58 billion, and selling, general and administrative expense was $976 million against $797 million. Source
Tax provision and interest income: The provision for taxes on earnings was $188 million against $162 million, and interest income, net was $33 million against $34 million. Source

“The year is off to a very strong start with the entire organization executing at a high level.”
Jim Conroy, Chief Executive Officer

Store footprint and banners

Ross locations rose to 1,917: Ross operated 1,917 locations, up from 1,904 at fiscal 2025 year-end, across 44 states, the District of Columbia, Guam, and Puerto Rico. Source
Dd's DISCOUNTS count rose to 365: dd's DISCOUNTS operated 365 stores in 23 states, up from 363 stores in 22 states at fiscal 2025 year-end. Source
Total store count reached 2,282: Store count at period end was 2,282, against 2,205 a year earlier and 2,267 at January 31, 2026. Source

Cash, inventory and shareholder returns

Repurchased $319 million of stock: The company repurchased 1.5 million shares for $319 million under a two-year $2.55 billion authorization approved by its Board in March 2026. Source
Operating cash flow rose to $836 million: Net cash provided by operating activities was $836 million against $410 million, and additions to property and equipment were $209 million. Source
Dividends and debt repayments: Dividends paid were $144 million and $500 million of long-term debt was repaid, against $133 million and $700 million a year earlier. Source
Inventory rose to $2.98 billion: Merchandise inventory was $2.98 billion at period end, against $2.67 billion a year earlier. Cash and cash equivalents were $4.13 billion. Source

Guidance and strategy

Full-year guidance raised on results: Management said it raised fiscal 2026 guidance based on first quarter results and second quarter guidance. Source
Second quarter EPS tied to sales: Second quarter EPS guidance applies if sales perform in line with the comparable store sales forecast, and is shown as growth against $1.56 a year earlier. Source
Disciplined execution stays the focus: Management said the company remains focused on disciplined, consistent execution across the business while it works to improve topline growth. Source

In management's words

“Moving forward, we believe we are well positioned to capture additional market share and drive profitable growth over the long term.”
Jim Conroy, Chief Executive Officer

Figures management reported

Figure	Reported
Comparable store sales Source	17%
Store count Source	2,282 at May 2, 2026, against 2,205 a year earlier

Risks management discussed

Demand: Management said results also benefited from higher consumer spending tied to tax refunds. The size of that effect was not given. Source

Earlier plans management reported on

On track: Management said the company remains on track to buy back $1.275 billion of common stock during fiscal 2026. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Ross Stores Reports Robust First Quarter Sales and Earnings Results,

Significantly Exceeding Guidance

Provides Solid Second Quarter Guidance and Increases Fiscal 2026 Outlook

Dublin, California, May 21, 2026 -- Ross Stores, Inc. (Nasdaq: ROST) today reported financial results for the 13‑week quarter ended May 2, 2026.

Highlights:

Total sales for the first quarter of fiscal 2026 increased 21% compared to last year, with comparable store sales up a very robust 17%
First quarter operating margin of 13.4% was well above the Company’s plan of 11.8% to 12.1%, primarily from the strong sales outperformance
Earnings per share for the first quarter of $2.02 grew 37%, significantly exceeding guidance of $1.60 to $1.67

Jim Conroy, Chief Executive Officer, commented, “We achieved outstanding sales and earnings results in the first quarter with superb execution throughout the business, especially the transition of our Spring assortment. Momentum was solid throughout the quarter, with broad-based strength across the business. Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers. We believe our results also benefited from higher consumer spending related to tax refunds.”

ROSS STORES, INC. 5130 Hacienda Drive, Dublin, CA 94568 (925) 965-4400

First Quarter Results

Sales increased 21% to $6.0 billion, up from $5.0 billion in 2025. Comparable store sales rose a very robust 17% for the quarter versus flat sales last year. Net income was $650 million versus $479 million last year, while earnings per share increased 37% to $2.02, compared with $1.47 per share in the prior year period.

Update on Shareholder Payouts

During the first quarter of fiscal 2026, a total of 1.5 million shares of common stock were repurchased for an aggregate price of $319 million under the Company’s two-year $2.55 billion authorization approved by its Board of Directors in March 2026. The Company remains on track to buy back a total of $1.275 billion in common stock during fiscal 2026.

Fiscal 2026 Guidance

Mr. Conroy commented, “Looking ahead, we exited the first quarter with solid momentum, and our underlying business fundamentals remain very strong. As such, for the 13 weeks ending August 1, 2026, comparable store sales are forecasted to increase 6% to 7%. If sales perform in line with this forecast, earnings per share are projected to be $1.85 to $1.93 or growth of 19% to 24%, compared to $1.56 for the second quarter ended August 2, 2025.”

Mr. Conroy continued, “Based on our first quarter results and our second quarter guidance, we are increasing our 2026 fiscal year same store sales growth to 6% to 7% on top of a 5% gain in 2025. As a result, fiscal 2026 earnings per share are now projected to be in the range of $7.50 to $7.74, or growth of 13% to 17% when compared to $6.61 for the fiscal year ended January 31, 2026.”

Mr. Conroy concluded, “The year is off to a very strong start with the entire organization executing at a high level. As our efforts to improve topline growth continue, we remain focused on disciplined, consistent execution across the business. Moving forward, we believe we are well positioned to capture additional market share and drive profitable growth over the long term.”

The Company will host a conference call on Thursday, May 21, 2026 at 4:15 p.m. Eastern time to provide additional details concerning its first quarter results and management’s outlook for the second quarter. A real-time audio webcast of the conference call will be available in the Investors section of the Company’s website, located at www.rossstores.com. An audio playback will be available at 201-612-7415, PIN #13760373 until 8:00 p.m. Eastern time on May 28, 2026, as well as on the Company’s website.

Forward-looking statements notice

Forward-Looking Statements: This press release and the related conference call remarks contain forward-looking statements regarding, without limitation, projected sales, costs and earnings, planned new store growth, capital expenditures, liquidity and other matters. These forward-looking statements reflect our then-current beliefs, plans, and estimates with respect to future events and our projected financial performance, operations, and competitive position, and they are subject to risks and uncertainties which could cause our actual results to differ materially from management’s current expectations. The words “plan,” “expect,” “target,” “anticipate,” “estimate,” “believe,” “forecast,” “projected,” “guidance,” “outlook,” “looking ahead,” and similar expressions identify forward-looking statements. Risk factors for Ross Dress for Less® (“Ross”) and dd’s DISCOUNTS® include without limitation, risk from adverse changes in the macroeconomic environment, government regulations and policies, geopolitical conditions, and financial and credit markets; continuing inflation and other external economic events and trends may have significant negative effects on our costs, and also on consumer confidence, shopping behavior, and spending; tariff increases (or threats of increases), and other changes and uncertainty in U.S. trade or tax policy regarding apparel, home-related merchandise, shoes, and other goods we sell that is produced in other countries; competitive pressures and the pace of change in the retailing industry; unexpected changes in the level of consumer spending or preferences; adverse or unseasonable weather may affect shopping patterns and consumer demand for seasonal apparel and other merchandise, and may result in temporary store closures and disruptions in deliveries of merchandise to our stores; our dependence on the market availability, quantity, and quality of attractive brand name merchandise at desirable discounts, and on the ability of our buyers to source and purchase merchandise to enable us to offer customers a wide assortment of merchandise at competitive prices; our need to expand in existing markets and enter new geographic markets in order to achieve growth; our need to obtain acceptable new store sites with favorable consumer demographics in order to achieve growth; our need to continually attract, train, and retain associates with the retail talent necessary to execute our off-price retail strategies, as well as labor shortages, increased turnover, or increased labor costs; our need to effectively manage our inventories, markdowns, and inventory shortage in order to achieve our planned gross margins; information or data security breaches, including cyberattacks on our transaction processing and computer information systems, including malware intrusion, data exfiltration, identity theft, and other types of cybersecurity threats, could disrupt our operations, result in theft or unauthorized disclosure of our confidential and valuable business information or credit card and other customer information, and could disrupt our operations, damage our reputation, increase our costs, and create significant legal exposure; disruptions in our supply chain or in our information systems could impact our ability to process sales and to deliver product to our stores in a timely and cost-effective manner; risks associated with importing and selling merchandise produced in other countries; damage to our corporate reputation or brands; a natural or man-made disaster in a region where we have a concentration of stores, offices, or a distribution center; consumer problems or legal issues involving the quality, safety, or authenticity of products we sell could harm our reputation, result in lost sales, and/or increase our costs; an adverse outcome in various legal, regulatory, or tax matters, could damage our reputation or brand and increase our costs. Other risk factors are set forth in our SEC filings including the Form 10-K for fiscal 2025 and fiscal 2026 Form 8-Ks on file with the SEC. The factors underlying our forecasts and plans are dynamic and subject to change. As a result, any forecasts or forward-looking statements speak only as of the date they are given and do not necessarily reflect our outlook at any other point in time. We disclaim any obligation to update or revise these forward-looking statements.

About Ross Stores, Inc.

Ross Stores, Inc. is an S&P 500, Fortune 500, and Nasdaq 100 (ROST) company headquartered in Dublin, California, with fiscal 2025 revenues of $22.8 billion. Currently, the Company operates Ross Dress for Less® ("Ross"), the largest off-price apparel and home fashion chain in the United States with 1,917 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. Ross offers first-quality, in-season, brand name and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. The Company also operates 365 dd's DISCOUNTS® stores in 23 states that feature a more moderately-priced assortment of first-quality, in-season apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. Additional information is available at www.rossstores.com.

		Three Months Ended
Ross Stores, Inc.
Condensed Consolidated Statements of Earnings
($000, except stores and per share data, unaudited)		May 2, 2026	May 3, 2025
Sales		$6,010,476	$4,984,971
Costs and Expenses
	Cost of goods sold	4,230,589	3,581,366
	Selling, general and administrative	975,861	797,135
Operating income		804,026	606,470
Interest income, net		(33,449)	(34,409)
Earnings before taxes		837,475	640,879
Provision for taxes on earnings		187,511	161,630
Net earnings		$649,964	$479,249
Earnings per share
	Basic	$2.04	$1.48
	Diluted	$2.02	$1.47
Weighted-average shares outstanding (000)
	Basic	318,957	324,877
	Diluted	321,231	327,005
Store count at end of period		2,282	2,205

Ross Stores, Inc.
Condensed Consolidated Balance Sheets
($000, unaudited)			May 2, 2026	May 3, 2025
Assets
Current Assets
	Cash and cash equivalents		$4,130,980	$3,783,413
	Accounts receivable		212,540	181,004
	Merchandise inventory		2,976,958	2,669,849
	Prepaid expenses and other		252,941	240,837
		Total current assets	7,573,419	6,875,103
Property and equipment, net			4,147,666	3,827,541
Operating lease assets			3,531,945	3,325,849
Other long-term assets			301,542	276,123
Total assets			$15,554,572	$14,304,616
Liabilities and Stockholders’ Equity
Current Liabilities
	Accounts payable		$2,653,741	$2,163,954
	Accrued expenses and other		696,511	616,008
	Current operating lease liabilities		735,528	702,025
	Accrued payroll and benefits		376,760	274,877
	Income taxes payable		210,971	180,083
	Current portion of long-term debt		241,344	498,812
		Total current liabilities	4,914,855	4,435,759
Long-term debt			776,843	1,016,897
Non-current operating lease liabilities			2,969,435	2,797,935
Other long-term liabilities			292,944	268,698
Deferred income taxes			295,492	209,249
Commitments and contingencies
Stockholders’ Equity			6,305,003	5,576,078
Total liabilities and stockholders’ equity			$15,554,572	$14,304,616

			Three Months Ended
Ross Stores, Inc.
Condensed Consolidated Statements of Cash Flows
($000, unaudited)			May 2, 2026	May 3, 2025
Cash Flows From Operating Activities
Net earnings			$649,964	$479,249
Adjustments to reconcile net earnings to net cash provided by operating activities:
	Depreciation and amortization		132,599	115,938
	Stock-based compensation		59,120	39,296
	Deferred income taxes		34,065	22,209
	Change in assets and liabilities:
		Merchandise inventory	(345,988)	(225,336)
		Other current assets	(50,547)	(58,426)
		Accounts payable	262,115	67,182
		Other current liabilities	(57,344)	(173,946)
		Income taxes	153,136	139,086
		Operating lease assets and liabilities, net	(2,104)	1,351
		Other long-term, net	993	3,112
		Net cash provided by operating activities	836,009	409,715
Cash Flows From Investing Activities
Additions to property and equipment			(208,954)	(207,378)
		Net cash used in investing activities	(208,954)	(207,378)
Cash Flows From Financing Activities
Issuance of common stock related to stock plans			6,616	6,143
Treasury stock purchased			(134,171)	(60,131)
Repurchase of common stock			(318,750)	(262,521)
Dividends paid			(143,559)	(133,300)
Payment of long-term debt			(500,000)	(700,000)
		Net cash used in financing activities	(1,089,864)	(1,149,809)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents			(462,809)	(947,472)
Cash, cash equivalents, and restricted cash and cash equivalents:
		Beginning of period	4,661,973	4,796,462
		End of period	$4,199,164	$3,848,990
Reconciliations:
	Cash and cash equivalents		$4,130,980	$3,783,413
	Restricted cash and cash equivalents included in prepaid expenses and other		21,137	17,050
	Restricted cash and cash equivalents included in other long-term assets		47,047	48,527
Total cash, cash equivalents, and restricted cash and cash equivalents:			$4,199,164	$3,848,990
Supplemental Cash Flow Disclosures
Interest paid			$19,839	$35,939
Income taxes paid, net			$309	$334

Contacts
William W. Sheehan II · Executive Vice President, · Chief Financial Officer · (925) 965-4150
Connie Kao · Senior Vice President, Investor Relations · (925) 965-4668 · connie.kao@ros.com