Ross Stores Stock Gains 5% After Q2 Beat

Ross Stores (NASDAQ:ROST) shares plunged over 13% after the discount retailer issued second-quarter guidance well below Wall Street expectations, citing tariff-related costs and broader macroeconomic uncertainty.

The company posted Q1 earnings per share of $1.47, ahead of the $1.43 consensus. Revenue rose 2.6% year-over-year to $4.98 billion, slightly beating forecasts of $4.94 billion. Comparable store sales were flat versus the prior year.

However, investor sentiment turned sharply negative on the company’s Q2 outlook. Ross expects EPS between $1.40 and $1.55, falling short of the $1.66 analyst estimate. The company said the guidance reflects a $0.11 to $0.16 per share impact from newly imposed tariffs.

Additionally, Ross warned of a 90 to 120 basis point hit to gross margin in Q2 due to increased costs tied to packaway inventory, ticketing expenses, and a high concentration of tariff-affected imports from China.

While the Q1 beat reflected operational resilience, the unexpectedly steep Q2 margin and earnings drag prompted a sharp selloff, with investors reevaluating near-term earnings power amid a shifting trade backdrop.

Ross Stores (NASDAQ:ROST) delivered stronger-than-expected fourth-quarter earnings, but issued a disappointing outlook for the current quarter and fiscal year. Currently, the company’s shares are up more than 1% intra-day today.

The retail giant reported earnings per share of $1.79, outpacing Wall Street expectations of $1.65. However, revenue for the quarter totaled $5.91 billion, falling just short of the consensus estimate of $5.94 billion.

Despite the earnings beat, investor sentiment soured due to the company’s cautious forward guidance. For the first quarter of 2026, Ross Stores projected EPS between $1.33 and $1.47, lagging behind analysts’ estimates of $1.54.

For the full fiscal year, the company expects earnings per share in the range of $5.95 to $6.55, below the consensus forecast of $6.72.

Ross Stores (NASDAQ:ROST) delivered stronger-than-expected fourth-quarter earnings, but issued a disappointing outlook for the current quarter and fiscal year. Currently, the company’s shares are up more than 1% intra-day today.

The retail giant reported earnings per share of $1.79, outpacing Wall Street expectations of $1.65. However, revenue for the quarter totaled $5.91 billion, falling just short of the consensus estimate of $5.94 billion.

Despite the earnings beat, investor sentiment soured due to the company’s cautious forward guidance. For the first quarter of 2026, Ross Stores projected EPS between $1.33 and $1.47, lagging behind analysts’ estimates of $1.54.

For the full fiscal year, the company expects earnings per share in the range of $5.95 to $6.55, below the consensus forecast of $6.72.

Ross Stores (NASDAQ:ROST) saw its stock climb over 7% in pre-market today after reporting third-quarter earnings that exceeded analyst expectations, even as sales fell short.

For the quarter, the off-price retailer delivered earnings per share of $1.48, surpassing the Street consensus estimate of $1.40. Revenue, however, came in at $5.07 billion, below the anticipated $5.16 billion. Comparable store sales increased 1% year-over-year, reflecting slower growth compared to the first half of the year.

Despite the sales shortfall, Ross Stores demonstrated strong profitability. Gross margin expanded to 28.3%, a 71-basis-point increase year-over-year and above the consensus estimate of 27.5%. Operating margin also improved to 11.9%, up from 11.2%, and exceeded the projected 11.1%, as lower operating costs helped offset planned reductions in merchandise margins.

Looking ahead, Ross Stores provided cautious fourth-quarter guidance. The company expects comparable store sales to grow by 2% to 3% and forecasts EPS between $1.57 and $1.64, below the consensus estimate of $1.67. Full-year EPS guidance of $6.10 to $6.17 aligned closely with analyst expectations of $6.13.

Ross Stores (NASDAQ:ROST) saw its stock climb over 7% in pre-market today after reporting third-quarter earnings that exceeded analyst expectations, even as sales fell short.

For the quarter, the off-price retailer delivered earnings per share of $1.48, surpassing the Street consensus estimate of $1.40. Revenue, however, came in at $5.07 billion, below the anticipated $5.16 billion. Comparable store sales increased 1% year-over-year, reflecting slower growth compared to the first half of the year.

Despite the sales shortfall, Ross Stores demonstrated strong profitability. Gross margin expanded to 28.3%, a 71-basis-point increase year-over-year and above the consensus estimate of 27.5%. Operating margin also improved to 11.9%, up from 11.2%, and exceeded the projected 11.1%, as lower operating costs helped offset planned reductions in merchandise margins.

Looking ahead, Ross Stores provided cautious fourth-quarter guidance. The company expects comparable store sales to grow by 2% to 3% and forecasts EPS between $1.57 and $1.64, below the consensus estimate of $1.67. Full-year EPS guidance of $6.10 to $6.17 aligned closely with analyst expectations of $6.13.

• Ross Stores, Inc. (NASDAQ:ROST) reported a third-quarter earnings per share (EPS) of $1.48, beating the estimated $1.41.
• The company's revenue for the quarter was $5.07 billion, slightly below the estimated $5.15 billion, yet showed growth from the previous year.
• Ross Stores has adjusted its annual profit forecast upwards, reflecting reduced freight and supply-chain costs, despite facing challenges in the fourth quarter.

Ross Stores, Inc. (NASDAQ:ROST) is a prominent player in the retail sector, known for its off-price retail apparel and home fashion offerings. The company operates under the Ross Dress for Less and dd's DISCOUNTS brands, providing customers with a wide range of products at competitive prices. Ross Stores competes with other discount retailers like TJX Companies and Walmart, which also focus on offering value to budget-conscious consumers.

On November 21, 2024, Ross Stores reported its third-quarter earnings, revealing an earnings per share (EPS) of $1.48, which exceeded the estimated $1.41. This performance highlights the company's ability to deliver better-than-expected results, as it has consistently outperformed consensus EPS estimates over the past four quarters. The earnings surprise for this quarter was 6.47%, showcasing the company's strong financial management.

Despite the positive earnings, Ross Stores' revenue for the quarter was $5.07 billion, slightly below the estimated $5.15 billion. This shortfall represents a 1.56% miss from the Zacks Consensus Estimate. However, the revenue still marks an increase from the $4.92 billion reported in the same period last year, indicating growth in the company's sales performance.

Ross Stores has adjusted its annual profit forecast upward, attributing this to reduced freight and supply-chain costs. This positive outlook led to a 7% rise in the company's shares after the announcement. However, the company has also adjusted its fourth-quarter profit expectations due to challenges faced by its low-to-moderate income customers, who are dealing with high costs on necessities that limit their discretionary spending.

Financially, Ross Stores has a price-to-earnings (P/E) ratio of approximately 22.28, indicating the price investors are willing to pay for each dollar of earnings. The company's price-to-sales ratio is about 2.23, reflecting the market's valuation of its revenue. Additionally, the debt-to-equity ratio is approximately 1.04, suggesting a balanced approach to financing its assets. The current ratio of 1.57 indicates that Ross Stores has a comfortable level of liquidity to cover its short-term liabilities.

• Ross Stores, Inc. (NASDAQ:ROST) reported a third-quarter earnings per share (EPS) of $1.48, beating the estimated $1.41.
• The company's revenue for the quarter was $5.07 billion, slightly below the estimated $5.15 billion, yet showed growth from the previous year.
• Ross Stores has adjusted its annual profit forecast upwards, reflecting reduced freight and supply-chain costs, despite facing challenges in the fourth quarter.

Ross Stores, Inc. (NASDAQ:ROST) is a prominent player in the retail sector, known for its off-price retail apparel and home fashion offerings. The company operates under the Ross Dress for Less and dd's DISCOUNTS brands, providing customers with a wide range of products at competitive prices. Ross Stores competes with other discount retailers like TJX Companies and Walmart, which also focus on offering value to budget-conscious consumers.

On November 21, 2024, Ross Stores reported its third-quarter earnings, revealing an earnings per share (EPS) of $1.48, which exceeded the estimated $1.41. This performance highlights the company's ability to deliver better-than-expected results, as it has consistently outperformed consensus EPS estimates over the past four quarters. The earnings surprise for this quarter was 6.47%, showcasing the company's strong financial management.

Despite the positive earnings, Ross Stores' revenue for the quarter was $5.07 billion, slightly below the estimated $5.15 billion. This shortfall represents a 1.56% miss from the Zacks Consensus Estimate. However, the revenue still marks an increase from the $4.92 billion reported in the same period last year, indicating growth in the company's sales performance.

Ross Stores has adjusted its annual profit forecast upward, attributing this to reduced freight and supply-chain costs. This positive outlook led to a 7% rise in the company's shares after the announcement. However, the company has also adjusted its fourth-quarter profit expectations due to challenges faced by its low-to-moderate income customers, who are dealing with high costs on necessities that limit their discretionary spending.

Financially, Ross Stores has a price-to-earnings (P/E) ratio of approximately 22.28, indicating the price investors are willing to pay for each dollar of earnings. The company's price-to-sales ratio is about 2.23, reflecting the market's valuation of its revenue. Additionally, the debt-to-equity ratio is approximately 1.04, suggesting a balanced approach to financing its assets. The current ratio of 1.57 indicates that Ross Stores has a comfortable level of liquidity to cover its short-term liabilities.