Ross Stores (NASDAQ:ROST) Shares Gap Up Following Earnings Beat

Key Points

• Ross Stores shares jumped 4.4% after the retailer reported quarterly EPS of $2.66, well above the $1.95 analyst consensus, while revenue rose 13.3% year over year to $6.26 billion.
• Comparable-store sales increased 10% as inflation-conscious shoppers sought discounts, prompting management to raise fiscal 2026 EPS guidance to $8.61–$8.77 and increase its annual store-opening target to 115 locations.
• The company declared a quarterly dividend of $0.445 per share, equivalent to a $1.78 annualized payout and a 0.7% yield; analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and $253.47 price target.

Ross Stores, Inc. (NASDAQ:ROST - Get Free Report)'s stock price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $228.99, but opened at $243.85. Ross Stores shares last traded at $238.85, with a volume of 1,623,663 shares changing hands.

The apparel retailer reported $2.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.95 by $0.71. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%. The business had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $6.16 billion. During the same period in the previous year, the firm earned $1.56 EPS. The company's quarterly revenue was up 13.3% compared to the same quarter last year.

Ross Stores Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 8th will be given a dividend of $0.445 per share. The ex-dividend date is Tuesday, September 8th. This represents a $1.78 annualized dividend and a dividend yield of 0.7%. Ross Stores's payout ratio is currently 24.86%.

Key Stories Impacting Ross Stores

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

• Positive Sentiment: Major earnings and revenue beat: Ross reported diluted EPS of $2.66, up from $1.56 a year earlier and well above the roughly $1.95 analyst consensus. Revenue increased 13.3% to approximately $6.26 billion, topping estimates near $6.16 billion. Ross Stores raises annual profit forecast again on discounted apparel demand
• Positive Sentiment: Customer traffic and comparable sales strengthened: Comparable-store sales rose 10%, with existing and new customers seeking lower prices amid inflation and an uncertain economy. Management said Ross is gaining market share from rivals. Ross Posts 13% Sales Jump as Inflation Drives Shoppers to Off-Price Retailers
• Positive Sentiment: Guidance was raised: Fiscal 2026 EPS is now expected at $8.61–$8.77, substantially above the prior outlook and the reported consensus near $7.31. Third- and fourth-quarter EPS forecasts also came in above analyst expectations. Ross Stores Reports Strong Second Quarter Sales and Earnings Results
• Positive Sentiment: Expansion plans increased: Ross opened 47 stores during the quarter and raised its fiscal-year store-opening target to 115 locations, supporting longer-term sales growth. The company also benefited from approximately $253 million in tariff refunds during the quarter.
• Positive Sentiment: Analyst support improved: Robert W. Baird raised its price target from $250 to $270 and maintained an “Outperform” rating. Benzinga analyst update

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Telsey Advisory Group lifted their price objective on Ross Stores from $265.00 to $280.00 and gave the company an "outperform" rating in a research report on Friday, August 14th. Citigroup reissued a "buy" rating on shares of Ross Stores in a research report on Friday. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $257.00 target price on shares of Ross Stores in a research note on Friday, May 22nd. Weiss Ratings restated a "buy (b)" rating on shares of Ross Stores in a research report on Monday, July 6th. Finally, Guggenheim reaffirmed a "buy" rating and issued a $290.00 price target on shares of Ross Stores in a research note on Monday, April 27th. Sixteen investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $253.47.

Hedge Funds Weigh In On Ross Stores

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of Ross Stores during the second quarter valued at $5,938,711,000. Bank of America Corp DE purchased a new position in shares of Ross Stores in the 2nd quarter worth about $2,024,203,000. Primecap Management Co. CA bought a new position in Ross Stores in the 2nd quarter worth about $1,937,995,000. Norges Bank bought a new position in Ross Stores in the 4th quarter worth about $868,360,000. Finally, Wellington Management Group LLP grew its position in Ross Stores by 89.2% during the 2nd quarter. Wellington Management Group LLP now owns 6,615,682 shares of the apparel retailer's stock valued at $1,408,148,000 after purchasing an additional 3,118,591 shares during the last quarter. Institutional investors own 86.86% of the company's stock.

Ross Stores Stock Up 4.4%

The company's 50-day moving average is $233.83 and its 200 day moving average is $221.74. The company has a market capitalization of $76.68 billion, a PE ratio of 33.39, a P/E/G ratio of 2.61 and a beta of 0.86. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.94 and a current ratio of 1.54.

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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