Ross Stores Surprises with Strong Sales and Profit Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: Fool
- Significant Sales Growth: Ross Stores reported a 21% year-over-year increase in total sales for Q1 of fiscal 2026, reaching $6 billion, demonstrating strong performance in the discount retail sector and solidifying its market leadership.
- Comparable Store Sales Surge: The company's comparable store sales jumped 17%, indicating robust consumer demand for its discounted products, particularly under current economic pressures, which enhances customer loyalty and market share.
- Net Income Soars: Ross Stores' net income surged 36% to $650 million, driving earnings per share up 37% to $2.02, showcasing the company's successful strategies in cost control and shareholder returns.
- Financial Outlook Raised: Management has raised its full-year financial forecast, expecting same-store sales growth of 6% to 7% and earnings per share growth of 13% to 17%, reflecting confidence in future market performance and further boosting investor sentiment.
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Analyst Views on ROST
Wall Street analysts forecast ROST stock price to fall
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 227.200
Low
142.00
Averages
198.93
High
224.00
Current: 227.200
Low
142.00
Averages
198.93
High
224.00
About ROST
Ross Stores, Inc. is engaged in operating two brands of off-price retail apparel and home fashion stores-Ross Dress for Less (Ross) and dds DISCOUNTS. Ross is the off-price apparel and home fashion chain in the United States, with approximately 1,831 locations in 43 states, the District of Columbia, and Guam. Ross offers in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross target customers are primarily from middle-income households. It also operates approximately 355 dds DISCOUNTS stores in 22 states. dds DISCOUNTS features more moderately-priced in- season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. It operates a total of approximately 2,186 stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Improved Profitability: The GAAP EPS of $2.02 surpassed analyst estimates of $1.72, marking a 17.6% increase, which highlights the company's effective strategies in cost control and revenue growth.
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- Comparable Store Sales Surge: The company's comparable store sales jumped 17%, indicating robust consumer demand for its discounted products, particularly under current economic pressures, which enhances customer loyalty and market share.
- Net Income Soars: Ross Stores' net income surged 36% to $650 million, driving earnings per share up 37% to $2.02, showcasing the company's successful strategies in cost control and shareholder returns.
- Financial Outlook Raised: Management has raised its full-year financial forecast, expecting same-store sales growth of 6% to 7% and earnings per share growth of 13% to 17%, reflecting confidence in future market performance and further boosting investor sentiment.
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- Net Income Surge: Ross's net income soared 36% to $650 million, with earnings per share boosted by stock buybacks increasing 37% to $2.02, showcasing a significant improvement in the company's profitability.
- Upgraded Financial Outlook: Management raised its full-year same-store sales growth forecast to 6% to 7%, with earnings per share expectations adjusted to $7.50 to $7.74, demonstrating confidence in future growth prospects.
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- Casey's General Stores Strong Performance: Zacks Rank #2 Casey's General Stores anticipates revenue and earnings growth rates of 10.8% and 12.4% for 2023, respectively, with resilient inside sales and a high-margin product mix enhancing its profitability.
- Ross Stores Expansion Plans: Zacks Rank #2 Ross Stores expects revenue and earnings growth rates of 8.2% and 15.6% for 2023, respectively, as its effective retail model and expansion plans are set to further enhance market share and profitability.
See More
Ross Stores Q1 Revenue Surpasses Expectations
- Significant Sales Growth: Ross Stores reported Q1 revenue of $6.01 billion, reflecting a 20.6% year-on-year increase that exceeded analyst expectations of $5.64 billion, indicating strong sales momentum in a competitive retail environment.
- Improved Profitability: The GAAP EPS of $2.02 surpassed analyst estimates of $1.72, marking a 17.6% increase, which highlights the company's effective strategies in cost control and revenue growth.
- Flexible Inventory Management: Management emphasized the importance of flexible inventory management and opportunistic buying in successfully navigating supply chain volatility and tariff impacts, ensuring well-stocked stores even in uncertain conditions.
- Cautious Future Outlook: Despite a strong Q1 performance, management withdrew its annual guidance due to persistent inflation and trade policy uncertainties, indicating a more cautious approach to protect margins and maintain customer value amidst external challenges.
See More
US Stocks Close Higher as Market Sentiment Improves
- Market Recovery: The S&P 500 rose by 0.37% and the Nasdaq 100 by 0.42%, with the Dow Jones Industrial Average hitting an all-time high, reflecting optimism about a potential US-Iran peace deal that could boost investor confidence.
- Consumer Sentiment Decline: The University of Michigan's consumer sentiment index was revised down to a record low of 44.8, below the expected 48.2, indicating growing concerns among consumers about the economic outlook, which may impact future spending.
- Rising Inflation Expectations: The 1-year inflation expectations for May were revised upward to 4.8%, exceeding the expected 4.6%, potentially prompting the Federal Reserve to consider interest rate hikes in upcoming meetings, which could pressure the stock market.
- Tech Stocks Lead Gains: Workday's stock surged over 5% after reporting Q1 adjusted EPS of $2.66, surpassing expectations, highlighting strong performance in the software sector and potentially attracting more investor interest in tech stocks.
See More
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- Significant Sales Growth: Ross Stores reported a 21% year-over-year increase in total sales for Q1 of fiscal 2026, reaching $6 billion, demonstrating strong performance in the discount retail sector and solidifying its market leadership.
- Comparable Store Sales Surge: The company's comparable store sales jumped 17%, indicating robust consumer demand for its discounted products, particularly under current economic pressures, which enhances customer loyalty and market share.
- Net Income Soars: Ross Stores' net income surged 36% to $650 million, driving earnings per share up 37% to $2.02, showcasing the company's successful strategies in cost control and shareholder returns.
- Financial Outlook Raised: Management has raised its full-year financial forecast, expecting same-store sales growth of 6% to 7% and earnings per share growth of 13% to 17%, reflecting confidence in future market performance and further boosting investor sentiment.
See More
Ross Stores Reports Strong Sales Growth Amid Budget-Conscious Shoppers
- Significant Sales Growth: Ross Stores reported a 21% year-over-year increase in total sales to $6 billion for Q1 of fiscal 2026, indicating substantial market share gains among budget-conscious consumers.
- Strong Comparable Store Sales: The retailer's comparable store sales surged 17%, reflecting the effectiveness of its discount strategy in attracting more customers and enhancing brand loyalty.
- Net Income Surge: Ross's net income soared 36% to $650 million, with earnings per share boosted by stock buybacks increasing 37% to $2.02, showcasing a significant improvement in the company's profitability.
- Upgraded Financial Outlook: Management raised its full-year same-store sales growth forecast to 6% to 7%, with earnings per share expectations adjusted to $7.50 to $7.74, demonstrating confidence in future growth prospects.
See More
US Stocks Rise, Nasdaq Hits Weekly High
- Strong Market Performance: The S&P 500 rose by 0.50% and the Nasdaq 100 by 0.73%, with the Dow Jones Industrial Average hitting an all-time high, reflecting optimism about a potential US-Iran peace deal that could boost investor confidence.
- Decline in Consumer Confidence: The University of Michigan's consumer sentiment index was revised down to 44.8, a record low, below the expected 48.2, indicating growing consumer concerns about the economic outlook, which may negatively impact future spending.
- Rising Inflation Expectations: The 1-year inflation expectations for May were revised up to 4.8%, a 9-month high, exceeding the expected 4.6%, which could prompt the Fed to consider interest rate hikes at the upcoming meeting, affecting market liquidity.
- Chip Stocks Lead Gains: Qualcomm's stock surged over 12%, leading the Nasdaq 100, demonstrating ongoing market enthusiasm for semiconductor and AI infrastructure, which may yield higher returns for related companies.
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