Ross Stores reported a massive Q2 beat with 10% comparable store sales growth, driven by a surge in customer traffic. Management raised guidance for the rest of the year citing strong momentum and early success of its growth initiatives, while also noting freight cost headwinds from rising fuel prices. Q2 comparable store sales rose 10%, with traffic driving the increase; July was the strongest month of the quarter.
Ross Stores reported a massive Q2 beat with 10% comparable store sales growth, driven by a surge in customer traffic. Management raised guidance for the rest of the year citing strong momentum and early success of its growth initiatives, while also noting freight cost headwinds from rising fuel prices. Q2 comparable store sales rose 10%, with traffic driving the increase; July was the strongest month of the quarter.
Management cited robust demand with 10% comp growth, driven by increased transactions, new and lapsed customers, and higher spending, with momentum building through the quarter and into August.
Guidance · revenue to 10%
Management did not provide specific capex guidance, but noted increased store openings and ongoing investments in initiatives, with capital payback expected in two to three years.
Management raised its full-year EPS forecast to $8.61-$8.77 and now expects to open 115 stores in 2026.
Management mentioned AI primarily in response to a question about agentic search and AI, noting they are integrating AI across functions but have not stood up a separate AI organization, and are bullish on AI as an enhancer.
Management cited robust demand with 10% comp growth, driven by increased transactions, new and lapsed customers, and higher spending, with momentum building through the quarter and into August.
Management did not provide specific capex guidance, but noted increased store openings and ongoing investments in initiatives, with capital payback expected in two to three years.
Management expressed strong confidence in the business momentum, highlighting early-stage initiatives and raising guidance despite tougher comparisons.
“As you see some of the softness in mainstream retail right now, there's a lot of goods becoming available, and we expect that to continue.”
“We don't hedge fuel costs. The biggest component of our freight is fuel. So if things are going to change materially on the fuel side from where they are today, that would have an impact.”
“It's been just a broad-based increase in customer capture across all dimensions, which is handy because that means that the proposition that we have in the stores that we already know works for our current customer will work for the new co…”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q3 | $1.75–$1.83above vs consensus | $1.79 | RAISED |
| EPS | FY2026 Q4 | $2.17–$2.26above vs consensus | $2.21 | RAISED |
| Revenue | FY2026 Q3 | 9%–11% | 10% | GUIDED |
| Issued | Metric | Target | Guide | Actual | Outcome |
|---|---|---|---|---|---|
| FY2025 Q4 | EPS | FY2026 Q1 | $1.60–$1.67 | $2.02 | Met / beat |
| FY2025 Q4 | Op margin | FY2026 Q1 | 11.8%–12.1% | 13.38% | Met / beat |
| FY2025 Q3 | EPS | FY2026 Q1 | $1.77–$1.85 | $2.02 | Met / beat |