Ross Stores sales surge 21%; to open about 110 new stores in 2026
Ross Stores reported first-quarter earnings and sales that “significantly” exceeded guidance as it cited broad-based strength across its business.
The off-price retailer is not slowing down in its expansion. During the first quarter, it expanded into new and existing markets, opening 13 Ross stores and four DD's Discount locations. For the full year, the retailer plans to open approximately 110 new Ross stores and 25 DD's Discounts, CEO James Conroy said during the company's earnings call.
"Consistent with our performance in 2025, we continue to be encouraged by the strength of the store openings in both new and existing markets," he told analysts.
First Quarter
Ross reported that its income totaled $650 million, with earnings per share of $2.02 for the quarter, ended May 2, compared to net income of $479 million and earnings per share of $1.47 in the year-ago period. Ross said its earnings significantly exceeded guidance of $1.60 to $1.67
The first quarter operating margin of 13.4% was above the company's plan of 11.8% to 12.1%, primarily from the strong sales outperformance.
Sales jumped 21% to $6 billion, up from $5.0 billion. Comparable sales rose 17%.
In the earnings statement, Conroy said that momentum was solid throughout the quarter, "with broad-based strength across the business."
“Customer traffic was the primary driver of the strong sales trend as compelling merchandise assortments, higher customer acquisition and engagement from our ongoing marketing initiatives, and an improved in‑store experience are resonating with shoppers," he said. "We believe our results also benefited from higher consumer spending related to tax refunds."
Looking ahead, Conroy said Ross exited the first quarter with solid momentum, “and our underlying business fundamentals remain very strong.” Based on its performance, the company increased its 2026 fiscal year same-store sales growth to 6% to 7%. Earnings per share are now projected to be in the range of $7.50 to $7.74, or growth of 13% to 17%.
"The year is off to a very strong start with the entire organization executing at a high level," Conroy said. "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."
Currently, the company operates 1,917 Ross Dress for Less locations in 44 states, the District of Columbia, Guam, and Puerto Rico. It also operates 365 DD’s Discounts stores in 23 states.
