Ross Stores earnings, sales soar in Q2; 115 new stores planned in 2026
Ross Stores continued a strong fiscal 2026 performance trend that began in the first quarter of the year.
The off-price giant reported a stellar second quarter as strong customer traffic drove its second consecutive quarter of double-digit comparable sales growth. According to a report by Placer.ai., Ross store visits rose 16.4% year over year during the period. Visits to the company's other banner, DD's Discounts grew 8.4%. (Neither brand operates a digital storefront.)
"Ross’s position at the deepest-discount end of the off-price segment has served it well as inflation and trade uncertainty have kept pressure on household budgets," Placer.ai said in the report.
Ross Stores beat analyst expectations with earnings per share of $2.66 in the quarter ended Aug.1, compared to $1.56 in the second quarter of fiscal 2025. The retailer easily topped Wall Street estimates of $1.94 EPS.
Sales rose 13% to $6.26 billion, ahead of estimates of $6.15 billion. Same-store sales surged 10%.
“Our performance was fueled by our compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience," said CEO Jim Conroy. "We were pleased to see strength throughout the quarter, with comparable store sales growth once again primarily driven by customer traffic. Importantly, that growth was supported by both an increase in new customers and higher engagement from existing customers.”
Store expansion
Ross Stores opened 47 new stores during the quarter, including 35 Ross and 12 DD’s Discounts. Based on strong performance, the company is increasing its 2026 store opening plans to 115 new locations from its previously announced 110 new stores. These will consist of approximately 90 Ross Dress for Less and 25 DD’s Discounts stores.
[READ MORE: Ross Stores expands footprint with nearly 50 June, July store openings]
Guidance
Same-store sales are now expected to increase 6% to 7% in the third quarter and 4% to 5% in the fourth quarter of fiscal 2026. If the second half of 2026 performs in line with these sales projections, Ross Stores expects EPS ranges for the third and fourth quarters to be $1.75 to $1.83 and $2.17 to $2.26, respectively. This includes an approximate $0.60 earnings per share benefit from IEEPA tariff refunds recognized in the second quarter.
"The year is off to a very strong start with the entire organization executing at a high level,” said Conroy. “As our efforts to improve topline growth continue, we remain focused on disciplined, consistent execution across the business. Moving forward, we believe we are well positioned to capture additional market share and drive profitable growth over the long term."
Ross Stores operates Ross Dress for Less, the largest off-price apparel and home fashion chain in the United States, with 1,952 locations in 44 states, the District of Columbia, Guam, and Puerto Rico. The company also operates 376 DD’s Discounts stores in 23 states that feature a more moderately-priced assortment.
