Ross Stores Inc (NASDAQ:ROST) shares jumped about 6% in early trade on Wednesday after the off-price retailer reported stronger-than-expected fourth-quarter results and issued fiscal 2026 guidance calling for further sales and earnings growth.
For the quarter ended January 31, 2026, total sales increased 12% to $6.6 billion, ahead of Wall Street expectations of approximately $6.37 billion.
Comparable store sales rose 9%, building on a 3% gain in the prior-year period.
Earnings per share for the quarter were $2.00, exceeding the company’s guidance range of $1.77 to $1.85 and topping analyst estimates of about $1.90. Net income rose to $646 million from $587 million a year earlier. In the prior-year quarter, results included a $0.14 per share gain from the sale of a packaway facility; excluding that gain, fourth-quarter earnings per share grew 21%, the company said.
For the full fiscal year, sales reached a record $22.8 billion, up 8% from $21.1 billion in fiscal 2024, with comparable store sales growth of 5% on top of a 3% gain the previous year.
Net income was $2.1 billion, roughly flat year-over-year, while earnings per share increased to $6.61 from $6.32. The company said that excluding the prior-year $0.14 per share gain and an approximately $0.16 per share impact from tariff-related costs in fiscal 2025, earnings per share grew 10% for the year.
Ross Stores CEO Jim Conroy said the company saw accelerating momentum in the fourth quarter, with sales and earnings surpassing expectations. He described the company’s 2025 performance as “solid.”
“While the first half presented challenges amid a dynamic macroeconomic environment, including the impact of tariffs and broader consumer uncertainty, we remained focused on executing our strategy and managing the business with discipline,” Conroy said.
“As the year progressed, underlying trends steadily improved, reflecting the strength of our merchandising efforts, enhanced marketing programs, and improved shopping experience. This momentum built throughout the back half of the year and culminated in a strong finish, positioning us well as we move into the year ahead."
Looking ahead, Ross forecast comparable store sales growth of 7% to 8% for the first quarter ending May 2, 2026. Based on that outlook, first-quarter earnings per share are projected to be between $1.60 and $1.67, compared with $1.47 in the year-earlier period.
For the full fiscal year ending January 30, 2027, the company expects same-store sales growth of 3% to 4%, on top of the 5% gain recorded in fiscal 2025. Fiscal 2026 earnings per share are projected in the range of $7.02 to $7.36, compared with $6.61 reported for fiscal 2025.
In addition to its earnings results, Ross announced a new two-year share repurchase authorization and a 10% increase in its quarterly cash dividend.