Companies /Consumer Cyclical

Ross Stores Inc

NASDAQ: ROST Apparel Retail
$228.54
▼ $0.01 (−0.00%) today
Markets closed · 10:02pm ET

Q1 2026 Earnings

Reported May 22, 2025, 4:02pm ET · SEC source
$1.47
Beat +2.46%
EPS · est. $1.43
$5.0B
Beat +0.58%
Revenue · est. $5.0B
−13.4%
Trailing market
ROST vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%+10%May 22May 23report 4:02pm ETearnings−0.8%−1.3%
−5%0+5%+10%May 22May 23earnings−0.8%−1.3%
ROST −1.3%S&P 500 −0.8%
−5%0+5%+10%May 22May 23report 4:02pm ETearnings−1.2%−1.3%
−5%0+5%+10%May 22May 23earnings−1.2%−1.3%
ROST −1.3%NASDAQ −1.2%
−5%0+5%+10%May 21May 30report 4:02pm ETearnings+0.9%+4.0%
−5%0+5%+10%May 21May 30earnings+0.9%+4.0%
ROST +4.0%S&P 500 +0.9%
−5%0+5%+10%May 21May 30report 4:02pm ETearnings+0.9%+4.0%
−5%0+5%+10%May 21May 30earnings+0.9%+4.0%
ROST +4.0%NASDAQ +0.9%
−9.85%
Day of report
+2.94%
Next session
+3.76%
One week
−7.75%
30 days

S&P 500 over the same 30 days: +5.66%.

Did ROST Beat Earnings? Q1 2026 Results

Ross Stores delivered a modest but clean beat in Q1 fiscal 2026, posting diluted EPS of $1.47 against a consensus estimate of $1.43, a 2.46% positive surprise, while revenue of $4.98 billion edged past expectations by 0.58% and grew 2.6% year-over-year. The headline numbers, however, tell only part of the story: net income actually slipped to $479 million from $488 million a year ago, with the EPS gain sustained largely by ongoing share buybacks that trimmed the diluted share count from 333.7 million to 327 million. CEO Jim Conroy noted the quarter opened slowly in February before accelerating meaningfully through March and April, with comparable store sales finishing flat for the period. The more consequential development was management's decision to withdraw full-year guidance entirely, citing tariff uncertainty — a pointed signal given that more than half of Ross's merchandise originates from China. For Q2, the company projects EPS of $1.40 to $1.55, embedding an estimated $0.11 to $0.16 per share tariff hit, making Ross's appeal as one of the <a href="https://247wallst.com/investing/2025/08/31/3-defensive-dividend-stocks-to-buy-for-recession-proof-gains/">more resilient off-price retailers</a> a harder case to make in the near term.

Key Takeaways
  • Monthly sales performance improved sharply from February through the end of the quarter
  • Comparable store sales flat year-over-year
  • Operating margin of 12.2% held flat year-over-year
  • Share repurchases reduced diluted share count, supporting EPS growth despite lower net income

“Despite the slower start to the spring selling season in February, our monthly sales performance improved sharply, month after month, for the balance of the quarter. For the first quarter, sales and earnings performed at the high end of our expectations while operating margin of 12.2% was flat year-over-year.”

Ross Stores CEO, on the earnings call

Forward Guidance & Outlook

Ross Stores withdrew its previously provided full-year fiscal 2025 sales and earnings guidance due to heightened macroeconomic and geopolitical uncertainty, particularly around evolving trade policies and elevated tariff levels on goods originating from China. For Q2 fiscal 2025 (13 weeks ending August 2, 2025), management projects comparable store sales of flat to up 3% on top of a 4% gain in the prior year period. Q2 EPS is projected at $1.40 to $1.55 versus $1.59 in the prior year, with an estimated $0.11 to $0.16 per share cost impact from announced tariffs embedded in this guidance. The company plans to manage the business conservatively, leveraging its flexible off-price model and strong financial foundation to navigate uncertainty.

ROST YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$2.0B$4.0B$4.9B$5.0BRevenue$1.4B$1.4BGross Profit$591.1M$606.5MOperating Income$488.0M$479.2MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.