Ross Stores Inc. significantly exceeded market expectations for its first-quarter results, driven by robust customer traffic and the highest comparable store growth in the company's history. The Dublin, California-based off-price retailer reported sales of $6.01 billion, surpassing analysts' estimates of $5.6 billion. Earnings per share also came in strong at $2.02, comfortably above the average analyst estimate of $1.71 per share.
Key to this performance was a remarkable 17% increase in same-store sales, nearly double Wall Street's projection of 8.6%. Total sales for the first quarter of fiscal 2026 surged by 21% compared to the previous year, with net income rising to $650 million from $479 million. Operating margin reached 13.4%, exceeding the company's plan of 11.8% to 12.1%, primarily due to the strong sales performance.
Following these results, Ross Stores raised its sales and profit guidance for the full fiscal year. For the second quarter, the company forecasts comparable store sales growth of 6% to 7% and projected earnings per share between $1.85 and $1.93. For the entire fiscal 2026, the company now expects same-store sales growth to be 6% to 7% and earnings per share to range from $7.50 to $7.74, representing a 13% to 17% growth from the prior fiscal year. CEO Jim Conroy attributed the success to superb execution, compelling merchandise, marketing initiatives, and an improved in-store experience.
