Ross Stores shares higher on upbeat outlook

Ross Stores Inc (NASDAQ:ROST) shares jumped astir 6% successful aboriginal commercialized connected Wednesday aft the off-price retailer reported stronger-than-expected fourth-quarter results and issued fiscal 2026 guidance calling for further income and net growth.

For the 4th ended January 31, 2026, full income accrued 12% to $6.6 billion, up of Wall Street expectations of astir $6.37 billion.

Comparable store income roseate 9%, gathering connected a 3% summation successful the prior-year period.

Earnings per stock for the 4th were $2.00, exceeding the company’s guidance scope of $1.77 to $1.85 and topping expert estimates of astir $1.90. Net income roseate to $646 cardinal from $587 cardinal a twelvemonth earlier. In the prior-year quarter, results included a $0.14 per stock summation from the merchantability of a packaway facility; excluding that gain, fourth-quarter net per stock grew 21%, the institution said.

For the afloat fiscal year, income reached a grounds $22.8 billion, up 8% from $21.1 cardinal successful fiscal 2024, with comparable store income maturation of 5% connected apical of a 3% summation the erstwhile year.

Net income was $2.1 billion, astir level year-over-year, portion net per stock accrued to $6.61 from $6.32. The institution said that excluding the prior-year $0.14 per stock summation and an astir $0.16 per stock interaction from tariff-related costs successful fiscal 2025, net per stock grew 10% for the year.

Ross Stores CEO Jim Conroy said the institution saw accelerating momentum successful the 4th quarter, with income and net surpassing expectations. He described the company’s 2025 show arsenic “solid.”

“While the archetypal fractional presented challenges amid a dynamic macroeconomic environment, including the interaction of tariffs and broader user uncertainty, we remained focused connected executing our strategy and managing the concern with discipline,” Conroy said.

“As the twelvemonth progressed, underlying trends steadily improved, reflecting the spot of our merchandising efforts, enhanced selling programs, and improved buying experience. This momentum built passim the backmost fractional of the twelvemonth and culminated successful a beardown finish, positioning america good arsenic we determination into the twelvemonth ahead."

Looking ahead, Ross forecast comparable store income maturation of 7% to 8% for the archetypal 4th ending May 2, 2026. Based connected that outlook, first-quarter net per stock are projected to beryllium betwixt $1.60 and $1.67, compared with $1.47 successful the year-earlier period.

For the afloat fiscal twelvemonth ending January 30, 2027, the institution expects same-store income maturation of 3% to 4%, connected apical of the 5% summation recorded successful fiscal 2025. Fiscal 2026 net per stock are projected successful the scope of $7.02 to $7.36, compared with $6.61 reported for fiscal 2025.

In summation to its net results, Ross announced a caller two-year stock repurchase authorization and a 10% summation successful its quarterly currency dividend.