Ross Stores reported a strong Q4 with 9% comp growth and provided a very optimistic outlook for Q1 2026, with comps guided up 7-8%. Management attributed the strength to successful merchandising and marketing initiatives, while noting broad-based growth across categories and regions. Q4 comps grew 9%, driven primarily by increased transactions and customer traffic, with broad strength across all major departments and regions.
Ross Stores reported a strong Q4 with 9% comp growth and provided a very optimistic outlook for Q1 2026, with comps guided up 7-8%. Management attributed the strength to successful merchandising and marketing initiatives, while noting broad-based growth across categories and regions. Q4 comps grew 9%, driven primarily by increased transactions and customer traffic, with broad strength across all major departments and regions.
Management expressed strong optimism about momentum, highlighted broad-based sales strength and a robust start to Q1 2026, and emphasized a 'growth orientation' and 'many levers' for future growth.
Q4 comps grew 9%, driven primarily by increased transactions and customer traffic, with broad strength across all major departments and regions.
The company guided Q1 2026 comps up 7-8%, citing continued momentum and a strong start to the spring season, despite a conservative stance.
Reported gross margin was 28.02%, reinforcing the quarter's better-than-guided profitability.
Q4 comps accelerated to 9% with strong momentum. Management expressed strong optimism about momentum, highlighted broad-based sales strength and a robust start to Q1 2026, and emphasized a 'growth orientation' and 'many levers' for future growth.
Management plans to invest approximately $1.1 billion in capital expenditures in 2026, funding new store openings (85 Ross and 25 DD's Discounts), the continued build-out of a new distribution center plus initial outlay for another DC, and investments in the existing store base to improve customer experience.
Management expressed strong optimism about momentum, highlighted broad-based sales strength and a robust start to Q1 2026, and emphasized a 'growth orientation' and 'many levers' for future growth.
“We've seen probably the most sequential improvement in the quadrant of the store that we would call center core. So we call that cosmetics and shoes specifically.”
“Looking forward, we are pleased with our inventory levels and are seeing ample availability in the marketplace to support our business trend going forward.”
“we had one of our best years in a while in terms of new store productivity, which also gives us confidence that we can grow in our existing market.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | $1.1B | $1.1B | GUIDED |
| EPS | FY2026 | $7.02–$7.36 | $7.19 | GUIDED |
| EPS | FY2026 Q1 | $1.60–$1.67 | $1.64 | GUIDED |
| Op margin | FY2026 | 12%–12.3% | 12.15% | GUIDED |
| Op margin | FY2026 Q1 | 11.8%–12.1% | 11.95% | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2025 Q3 | EPS | FY2026 Q1 | $1.77–$1.85 | $2.02 | Met / beat |