Ross Stores IncROST
▲ PositiveCapitalrelevance
Raises FY26 EPS guidance and beats Q2 estimates, with analysts raising price targets.
Impact on stocks 1
Consumer Discretionary
Ross Stores IncRoss Stores, Inc. surged after raising its full-year fiscal 2026 earnings guidance to $8.61–$8.77 per share, up from $7.50–$7.74, and well above consensus of $7.82. The off-price retailer's Q2 2026 report showed total sales up 13% to $6.3 billion, with comparable-store sales jumping 10% versus 7.6% expected, driven by customer traffic. Operating profits reached $1.1 billion, with operating margin expanding 610 basis points, including a 405 basis point boost from IEEPA tariff refunds. Reported diluted EPS was $2.66, including a $0.60 per share tariff refund benefit; excluding that, adjusted EPS was $2.06, still beating expectations. The company also increased its fiscal 2026 store expansion plan to 115 new locations. Analysts responded positively, with Barclays raising its price target to $298 and Deutsche Bank to $294, though concerns remain about non-recurring tariff benefits and an 18% year-over-year increase in merchandise inventories.
Ross Stores IncRaises FY26 EPS guidance and beats Q2 estimates, with analysts raising price targets.