Ross Stores Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.45%.
Did ROST Beat Earnings? Q2 2026 Results
Ross Stores delivered a modest earnings beat in the second quarter of fiscal 2025, posting diluted EPS of $1.56 against a consensus estimate of $1.54 — a 1.41% beat — even as revenue of $5.53 billion came in fractionally below the $5.54 billion Wall Street had expected, representing 4.6% growth year over year. The key driver behind the earnings outperformance was lower-than-anticipated tariff-related costs, which still weighed on results — dragging operating margin down 95 basis points to 11.5% and contributing to net income slipping to $508 million from $527.15 million a year earlier. CEO Jim Conroy pointed to a sharp rebound in July sales as an encouraging sign heading into back-to-school season, with consumers increasingly drawn to value-oriented retail as broader pricing pressures build — a dynamic that could make <a href="https://247wallst.com/investing/2025/08/31/3-defensive-dividend-stocks-to-buy-for-recession-proof-gains/">off-price retailers more appealing</a> in a uncertain macro environment. Looking ahead, management guided full-year fiscal 2025 EPS to $6.08–$6.21, reflecting an estimated $0.22–$0.25 per share tariff headwind, with comparable store sales growth of 2%–3% expected in both Q3 and Q4.
- Comparable store sales up 2% year over year in Q2
- Total sales grew 5% to $5.5 billion driven by new store openings and comp sales growth
- Strong May sales with softening in June and sharp rebound in July
- Lower-than-expected tariff-related costs helped earnings modestly exceed guidance
- Operating margin declined 95 basis points to 11.5% primarily from tariff-related costs
“We are encouraged by the sequential improvement in sales trends relative to the first quarter. During the second quarter, sales in May were strong and softened in June, before rebounding sharply in July. We were pleased to see the improved trend at the end of the quarter, particularly with the early sales performance related to the back-to-school selling season. We ended the period with second quarter sales in line with our expectations, while earnings modestly exceeded the high end of our guidance range, mainly due to lower-than-expected tariff-related costs. Operating margin for the quarter decreased 95 basis points to 11.5% compared to the prior year, primarily reflecting tariff-related costs.”
Ross Stores CEO, on the earnings call
Forward Guidance & Outlook
For both Q3 and Q4 fiscal 2025, Ross Stores is planning comparable store sales growth of 2% to 3%. Q3 EPS is projected at $1.31 to $1.37 versus $1.48 last year, including $0.07 to $0.08 per share tariff impact. Q4 EPS is projected at $1.74 to $1.81 versus $1.79 last year, including $0.04 to $0.06 per share tariff impact. Full-year fiscal 2025 EPS is now expected to be $6.08 to $6.21 versus $6.32 last year, with approximately $0.22 to $0.25 per share total impact from announced trade policies. Management expects macroeconomic and geopolitical uncertainty to persist, and anticipates retail pricing will move higher, which could drive consumers to seek more value — potentially benefiting Ross's competitive positioning.
ROST YoY Financials
Figures from SEC filings and company reports. Not investment advice.