Off-price retailer Ross Stores lifted its fiscal 2026 earnings per share guidance to a range of $8.61 to $8.77, driven by stronger-than-expected second-quarter performance and tariff refunds totaling approximately $253 million.
For the quarter ended 3 August 2026, the company reported total sales of $6.3 billion, representing a 13% increase compared with the prior-year period. Comparable store sales advanced 10%, with customer traffic serving as the primary driver of growth. Net income reached $851 million, substantially higher than the $508 million recorded a year earlier, while earnings per share came in at $2.66, exceeding the company’s prior guidance range of $1.85 to $1.93.
Operating profits for the quarter totaled $1.1 billion, with the tariff refunds contributing approximately 405 basis points to the quarter’s 610 basis point operating margin increase. Excluding the one-time tariff benefit, operating margin expanded by 205 basis points, surpassing the company’s target. The company opened 47 new store locations during the period, contributing to overall sales momentum.
For the first half of fiscal 2026, sales climbed 17% to $12.3 billion from $10.5 billion in the comparable prior-year period. Net income increased to $1.5 billion from $987 million, while earnings per share grew to $4.69 from $3.03. Looking ahead, the company projected comparable store sales growth of 6% to 7% in the third quarter and 4% to 5% in the fourth quarter, with earnings per share guidance of $1.75 to $1.83 and $2.17 to $2.26 respectively.
Management expanded its new store opening plan for the year to 115 locations, consisting of approximately 90 Ross Dress for Less and 25 dd’s DISCOUNTS stores, citing confidence in its expansion strategy across new and existing markets.
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