Ross Stores (NASDAQ:ROST) Reaches New 1-Year High Following Earnings Beat

Key Points

• Ross Stores hit a new 52-week high after reporting stronger-than-expected quarterly results, with EPS of $2.02 versus the $1.73 estimate and revenue of $6.01 billion beating forecasts.
• The company also raised guidance, lifting its FY2026 EPS outlook to $7.50-$7.74 and Q2 EPS guidance to $1.85-$1.93, signaling confidence in continued momentum.
• Ross Stores declared a quarterly dividend of $0.445 per share, while analysts remained broadly positive with several Buy ratings even as some warned tougher year-over-year comparisons could slow growth later this year.

Ross Stores, Inc. (NASDAQ:ROST - Get Free Report)'s share price hit a new 52-week high during trading on Friday following a stronger than expected earnings report. The company traded as high as $233.50 and last traded at $234.6450, with a volume of 372383 shares. The stock had previously closed at $217.19.

The apparel retailer reported $2.02 EPS for the quarter, beating the consensus estimate of $1.73 by $0.29. Ross Stores had a net margin of 9.43% and a return on equity of 36.70%. The business had revenue of $6.01 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same period in the prior year, the company posted $1.47 earnings per share. Ross Stores's revenue was up 20.6% compared to the same quarter last year. Ross Stores has set its FY 2026 guidance at 7.500-7.740 EPS and its Q2 2026 guidance at 1.850-1.930 EPS.

Ross Stores Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 9th will be given a $0.445 dividend. 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 (DPR) is presently 26.93%.

Key Stories Impacting Ross Stores

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

• Positive Sentiment: Ross Stores delivered Q1 EPS of $2.02, well above estimates, and revenue of $6.01 billion, also topping forecasts, highlighting stronger-than-expected demand. Ross Stores Reports Robust First Quarter Sales and Earnings Results, Significantly Exceeding Guidance
• Positive Sentiment: The company raised its full-year FY2026 EPS outlook to $7.50-$7.74 and Q2 guidance to $1.85-$1.93, signaling management confidence in continued momentum. Ross Stores Lifts Outlook as Sales Jump
• Positive Sentiment: Comparable sales growth was strong, with reports pointing to about 17% same-store sales growth and margin expansion, reinforcing the view that Ross is benefiting from value-conscious shoppers. Dylan Carden Reiterates Buy on Ross Stores After Strong Q1 Beat, Margin Expansion, and Structural Comp Drivers
• Neutral Sentiment: Analyst commentary remains constructive, with William Blair reiterating a Buy rating after the earnings beat, which may help support sentiment but is not a new fundamental catalyst.
• Neutral Sentiment: Recent commentary also noted that off-price retailers like Ross may benefit in a cautious consumer environment, but tougher comparisons could limit upside later this year.
• Negative Sentiment: Some analysts warned that tougher year-over-year comparisons are ahead, which could slow the pace of growth after an unusually strong quarter. Ross Stores: Q1 Was A Great Quarter, But There Are Tougher Comps Ahead

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ROST. Wells Fargo & Company reissued an "overweight" rating and issued a $245.00 target price on shares of Ross Stores in a report on Friday. Zacks Research downgraded shares of Ross Stores from a "strong-buy" rating to a "hold" rating in a research note on Monday, March 2nd. Citigroup raised their target price on shares of Ross Stores from $240.00 to $261.00 and gave the company a "buy" rating in a research report on Tuesday, May 12th. Truist Financial began coverage on shares of Ross Stores in a report on Monday. They set a "buy" rating and a $270.00 price target for the company. Finally, Guggenheim reiterated a "buy" rating and issued a $290.00 price target on shares of Ross Stores in a research note on Monday, April 27th. Seventeen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Ross Stores currently has a consensus rating of "Moderate Buy" and an average price target of $219.11.

Insiders Place Their Bets

In other Ross Stores news, Director Patricia H. Mueller sold 1,881 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $213.13, for a total transaction of $400,897.53. Following the transaction, the director directly owned 2,159 shares in the company, valued at approximately $460,147.67. This represents a 46.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CMO Karen Sykes sold 5,506 shares of the firm's stock in a transaction that occurred on Wednesday, March 25th. The stock was sold at an average price of $213.40, for a total transaction of $1,174,980.40. Following the sale, the chief marketing officer directly owned 104,648 shares of the company's stock, valued at approximately $22,331,883.20. This trade represents a 5.00% decrease in their position. 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. Company insiders own 2.10% of the company's stock.

Institutional Trading of Ross Stores

Several large investors have recently made changes to their positions in the company. State Street Corp lifted its holdings in shares of Ross Stores by 0.7% in the 4th quarter. State Street Corp now owns 13,911,953 shares of the apparel retailer's stock worth $2,506,099,000 after purchasing an additional 99,975 shares in the last quarter. Bank of America Corp DE lifted its stake in shares of Ross Stores by 1.9% in the third quarter. Bank of America Corp DE now owns 9,762,583 shares of the apparel retailer's stock valued at $1,487,720,000 after buying an additional 180,182 shares in the last quarter. Morgan Stanley lifted its stake in shares of Ross Stores by 1.5% in the fourth quarter. Morgan Stanley now owns 5,436,788 shares of the apparel retailer's stock valued at $979,384,000 after buying an additional 79,519 shares in the last quarter. Norges Bank acquired a new position in shares of Ross Stores during the fourth quarter valued at about $868,360,000. Finally, Viking Global Investors LP increased its position in shares of Ross Stores by 9.9% during the second quarter. Viking Global Investors LP now owns 4,747,639 shares of the apparel retailer's stock worth $605,704,000 after acquiring an additional 426,370 shares in the last quarter. 86.86% of the stock is currently owned by institutional investors and hedge funds.

Ross Stores Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.58 and a quick ratio of 1.04. The company has a fifty day moving average of $218.62 and a 200-day moving average of $196.78. The firm has a market cap of $75.58 billion, a P/E ratio of 35.49, a P/E/G ratio of 2.88 and a beta of 0.87.

Ross Stores Company Profile

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.

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