Ross Stores (NASDAQ:ROST) Posts Quarterly Earnings Results, Beats Expectations By $0.32 EPS

Key Points

• Ross Stores beat expectations with quarterly EPS of $2.02, exceeding the $1.70 consensus by $0.32, while revenue came in at $6.01 billion versus the $5.64 billion estimate.
• The company raised guidance, lifting full-year FY2026 EPS outlook to $7.50-$7.74 and Q2 2026 EPS guidance to $1.85-$1.93, both above Wall Street expectations.
• Ross Stores also declared a quarterly dividend of $0.445 per share, and the stock traded slightly lower after the report despite the strong results.

Ross Stores (NASDAQ:ROST - Get Free Report) issued its quarterly earnings results on Thursday. The apparel retailer reported $2.02 EPS for the quarter, topping the consensus estimate of $1.70 by $0.32, FiscalAI reports. Ross Stores had a return on equity of 36.70% and a net margin of 9.43%.The firm had revenue of $6.01 billion during the quarter, compared to analysts' expectations of $5.64 billion. Ross Stores updated its FY 2026 guidance to 7.500-7.740 EPS and its Q2 2026 guidance to 1.850-1.930 EPS.

Ross Stores Trading Down 0.3%

Shares of NASDAQ ROST traded down $0.58 during mid-day trading on Thursday, reaching $217.21. 2,360,560 shares of the company's stock were exchanged, compared to its average volume of 2,543,277. The firm has a market capitalization of $69.97 billion, a price-to-earnings ratio of 32.86, a PEG ratio of 2.81 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.04 and a current ratio of 1.58. Ross Stores has a 52-week low of $124.49 and a 52-week high of $231.16. The company's 50-day moving average is $218.54 and its 200-day moving average is $196.37.

Ross Stores Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 9th will be issued a dividend of $0.445 per share. The ex-dividend date is Tuesday, June 9th. This represents a $1.78 dividend on an annualized basis and a dividend yield of 0.8%. Ross Stores's dividend payout ratio is currently 26.93%.

Ross Stores News Summary

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Ross Stores reported Q1 EPS of $2.02, topping estimates of $1.70, and revenue of $6.01 billion versus expectations of $5.64 billion, highlighting a significant beat on both profit and sales. Article Title
• Positive Sentiment: The company raised second-quarter 2026 EPS guidance to $1.85-$1.93, above the consensus estimate of $1.79, suggesting management sees continued momentum. Article Title
• Positive Sentiment: Ross Stores also lifted fiscal 2026 EPS guidance to $7.50-$7.74, ahead of the Street’s $7.31 estimate, reinforcing a favorable earnings outlook. Article Title
• Neutral Sentiment: The company declared a quarterly dividend of $0.445 per share, which supports the investment case but is unlikely to be the main driver of the stock move. Article Title
• Neutral Sentiment: Some commentary still flags tariff risks as a potential headwind, which could temper optimism if costs rise or margins come under pressure. Article Title

Analysts Set New Price Targets

ROST has been the subject of several research reports. Wells Fargo & Company boosted their price target on Ross Stores from $205.00 to $235.00 and gave the stock an "overweight" rating in a research report on Wednesday, March 4th. Citigroup upped their target price on Ross Stores from $240.00 to $261.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. Barclays upped their target price on Ross Stores from $205.00 to $221.00 and gave the company an "overweight" rating in a report on Monday, March 2nd. Telsey Advisory Group restated an "outperform" rating and issued a $240.00 target price on shares of Ross Stores in a report on Thursday, March 26th. Finally, Guggenheim restated a "buy" rating and issued a $290.00 target price on shares of Ross Stores in a report on Monday, April 27th. Seventeen research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $218.56.

Insider Transactions at Ross Stores

In other news, COO Michael J. Hartshorn sold 15,813 shares of the stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $214.91, for a total transaction of $3,398,371.83. Following the completion of the transaction, the chief operating officer directly owned 116,028 shares in the company, valued at approximately $24,935,577.48. This represents a 11.99% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CMO Karen Sykes sold 5,506 shares of the stock in a transaction on Wednesday, March 25th. The stock was sold at an average price of $213.40, for a total value of $1,174,980.40. Following the transaction, the chief marketing officer owned 104,648 shares of the company's stock, valued at approximately $22,331,883.20. This represents a 5.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 25,756 shares of company stock worth $5,521,004. 2.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Ross Stores

Hedge funds have recently modified their holdings of the business. Marshall Wace LLP raised its position in Ross Stores by 1,908.8% in the third quarter. Marshall Wace LLP now owns 1,816,763 shares of the apparel retailer's stock valued at $276,857,000 after purchasing an additional 1,726,324 shares during the period. Bank of America Corp DE raised its position in Ross Stores by 20.9% in the second quarter. Bank of America Corp DE now owns 9,582,401 shares of the apparel retailer's stock valued at $1,222,523,000 after purchasing an additional 1,657,008 shares during the period. Viking Global Investors LP raised its position in Ross Stores by 56.5% in the fourth quarter. Viking Global Investors LP now owns 3,167,479 shares of the apparel retailer's stock valued at $570,590,000 after purchasing an additional 1,143,611 shares during the period. Bank of Montreal Can raised its position in Ross Stores by 357.4% in the fourth quarter. Bank of Montreal Can now owns 1,451,569 shares of the apparel retailer's stock valued at $261,486,000 after purchasing an additional 1,134,186 shares during the period. Finally, Scopus Asset Management L.P. purchased a new stake in Ross Stores in the second quarter valued at approximately $102,281,000. 86.86% of the stock is currently owned by hedge funds and other institutional investors.

About Ross Stores

Ross Stores, Inc NASDAQ: ROST is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd's DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross's business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.