Led by double-digit comparable sales growth, Ross Stores posted a strong first quarter with revenue increases at its Ross Dress For Less and dd’s Discount banners, as well as an earnings advance that topped Wall Street estimates.
Net earnings were $650 million, or $2.02 per diluted share, versus $479.2 million, or $1.47 per diluted share, in the year-previous quarter, the company reported.
A Zacks Investment Research analyst consensus estimate called for earnings per diluted share of $1.70 and revenues of $5.62 billion.
Comparable sales grew by 17% in the quarter year over year. Net sales increased to $6.01 billion from $4.98 billion in the fiscal 2025 period. Operating income was $804 million versus $606.5 million in the year-prior quarter.
In a conference call, Jim Conroy, Ross CEO, said a growth in transactions was the company’s primary comp driver in the quarter, while customer count increased broadly across all major demographic groups.
Conroy added, “Every major merchandise category posted comp growth in the teens or higher. Similarly, we saw strength across the entire country, with the Midwest performing the best. dd’s Discounts also delivered solid top-line sales with strong performance across merchandise categories and geographic regions.”
In announcing the financial results, Conroy said the company was increasing its 2026 fiscal year comparable sales growth guidance to 6% to 7% with earnings per share in the range of $7.50 to $7.74. He had previously announced fiscal 2026 expectations of earnings per share gains in the range of $7.02 to $7.36, and comp growth of 3% to 4%.
“We achieved outstanding sales and earnings results in the first quarter with superb execution throughout the business, especially the transition of our spring assortment,” Conroy said. “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. We believe our results also benefited from higher consumer spending related to tax refunds.”
Conroy added that, as Ross continues initiatives to improve topline growth, “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.”
