Ross Stores Earnings Call Transcripts
Fiscal Year 2026
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Fourth quarter and full-year results exceeded expectations with strong sales, margin improvement, and broad-based growth across categories and regions. Guidance for 2026 projects continued sales and earnings growth, robust store expansion, and increased shareholder returns.
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Third quarter sales rose 10% to $5.6B with 7% comp growth, driven by strong assortments, marketing, and broad-based gains. Operating margin was 11.6%, EPS $1.58, and guidance for Q4 and FY25 was raised as tariff impacts are expected to be negligible.
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Q2 sales rose 5% to $5.5B with EPS of $1.56, as broad-based category and regional gains offset tariff headwinds. Guidance calls for 2%-3% comp growth in Q3 and Q4, with full-year EPS of $6.08-$6.21, reflecting ongoing tariff pressures and continued store expansion.
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Sales grew 3% to $5B with flat comps and EPS of $1.47, as operating margin held steady. Q2 guidance projects flat to 3% comp growth and EPS of $1.40-$1.55, with tariffs expected to pressure margins. Annual guidance was withdrawn due to macro and trade uncertainties.
Fiscal Year 2025
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Q4 and full-year results met high-end expectations, with strong sales and margin stability despite macro headwinds. Guidance for 2025 is cautious, reflecting external volatility, but continued store growth, share buybacks, and increased dividends signal confidence in long-term strategy.
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Q3 sales growth slowed due to weather and execution issues, but operating margin and EPS improved year-over-year. Guidance for Q4 expects comp sales up 2%-3% and full-year EPS growth, with continued focus on brand strategy and value.
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Second quarter results exceeded expectations with 7% sales growth and a 115 bps margin improvement. Full-year EPS guidance was raised, supported by cost efficiencies and strong value-driven performance, though margin pressure from branded strategies is expected to increase in the second half.