Ross Stores Q2 2027: A 37% EPS Beat Backed by Real Demand
As seen on the 24/7 Wall St. homepage on August 20, 2026.
Strip out the roughly $253 million in IEEPA tariff refunds ($0.60 per share) and Ross still beat, with comparable store sales up 10% on customer traffic. Management raised full-year EPS guidance to $8.61 to $8.77 and lifted its 2026 store opening plan to 115 locations.
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Ross Stores posted fiscal second-quarter earnings per share of $2.66 against a $1.94 consensus, a 37% beat and its widest margin of outperformance in at least two years. Revenue reached $6.26 billion, beating expectations on a 10% comparable-store sales gain led by stronger customer traffic.
The headline number includes roughly $0.60 per share in IEEPA tariff refunds recognized during the quarter, yet the underlying business still beat expectations. CEO Jim Conroy credited merchandise offerings, marketing, and in-store experience improvements, with growth from both new customers and higher engagement from existing ones.
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Management raised full-year fiscal 2026 EPS guidance to a range of $8.61 to $8.77, which already incorporates the tariff benefit. Comparable-store sales are guided higher for the back half even against tougher year-over-year comparisons, and store opening plans were lifted to 115 new locations for fiscal 2026.
The quarter extended Ross's streak to five consecutive periods of topping Wall Street estimates, rebuilding investor confidence in the off-price model. The company also repurchased 1.4 million shares for $319 million during Q2, signaling that management sees opportunity in the current valuation.
Mentioned: ROST