TipRanks
Ross Stores (MX:ROST)
:ROST
Mexico Market
EarningsQ2 2026 Earnings Report

Ross Stores (ROST) Q2 2026 Earnings Report

1 Followers

MX:ROST Q2 2026 EPS Results

Actual EPS$36.54
Consensus EPS$34.52
Beat/MissBeat by +$2.02
One Year Ago EPS$27.67

MX:ROST Q2 2026 Revenue Results

Actual Revenue$111.12B
Expected Revenue$109.27B
Beat/MissBeat by +$1.84B
YoY Revenue Growth+13.31%

Earnings Announcement Details

QuarterQ2 2026
Date08/20/2026
TimeAfter Close
Conference CallThursday, August 20, 2026
MX:ROST Upcoming Earnings
Ross Stores's next earnings date is estimated for November 12, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:ROST Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

No slide deck is available for this earnings event.

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 20, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call reported very strong operating and top-line performance: double-digit comparable-store sales in Q2, robust sales and EPS growth, margin expansion even excluding one-time tariff refunds, raised guidance for both the back half of the year and full-year, accelerated store openings, and active share repurchases. Key positive drivers include higher customer traffic (new, lapsed, and existing shoppers), broad-based category and geographic strength (home and cosmetics highlighted), and improved merchandise execution. Major cautions are that a sizable portion of the margin improvement and EPS benefit stems from a one-time ~$253 million tariff refund (≈$0.60 EPS and ~405 bps operating margin benefit), freight/fuel cost headwinds that may continue to deleverage margins, an 18% inventory increase that could be riskier under a consumer slowdown, and some SG&A/buying cost deleverage tied to incentives. Management emphasized that many growth initiatives are still early-stage, and execution will determine sustainability. On balance, the positive operating results, raised guidance, and momentum communicated by management outweigh the transitory and execution risks discussed.
Company Guidance
Ross raised its back‑half outlook: Q3 comparable‑store sales are now guided to +6%–7% (total Q3 sales +9%–11%) with operating margin expected at 11.7%–12.0% (vs. 11.6% LY) and EPS $1.75–$1.83 (vs. $1.58 LY); Q4 comps are guided to +4%–5% (vs. +9% LY) with EPS $2.17–$2.26 (vs. $2.00 LY); full‑year EPS is now expected at $8.61–$8.77 (vs. $6.61 LY), which includes roughly $0.60 of EPS from tariff refunds. Other assumptions: ~51 new store openings in Q3 (41 Ross, 10 dd's), 115 total openings in 2026 (up from 110), ~5–10 relocations/closures, diluted shares ≈319M, net interest income ≈$30M, tax rate ≈25%; management expects slightly higher merchandise margins and DC leverage to help flow‑through but flags a freight/headwind from higher fuel; share repurchase plans remain on track (≈1.4M shares / $319M repurchased this quarter; $1.275B targeted repurchases in 2026 under a $2.55B authorization).
Double-digit Comparable Store Sales and Strong Top-line Growth
Q2 comparable store sales increased 10% (second quarter in a row with double-digit comps). Total Q2 sales grew 13% to $6.3 billion. First half sales grew 17% to $12.3 billion with first-half comparable store sales up 13% year-over-year.
Robust Profitability and EPS Upside
Q2 net income rose to $851 million from $558 million a year ago. Q2 earnings per share were $2.66 versus $1.56 prior year. First-half EPS were $4.69 versus $3.03 in prior year.
Strong Margin Performance (Including and Excluding One-time Benefit)
Reported operating margin increased 610 basis points in Q2, which included a 405 basis point benefit from tariff refunds. Excluding the tariff refund benefit, operating margin still expanded ~205 basis points year-over-year. Gross margin improved ~25 basis points and merchandise margin increased ~110 basis points.
Raised Near-term Guidance and Upgraded Full-Year Outlook
Management raised Q3 comparable store sales guidance to +6% to +7% (vs prior) with total sales forecast +9% to +11% and Q3 EPS $1.75–$1.83 (vs $1.58 LY). Q4 comps guided to +4% to +5% and Q4 EPS $2.17–$2.26 (vs $2.00 LY). Full-year EPS guidance was raised to $8.61–$8.77 (includes ~$0.60 of tariff refund benefit) vs $6.61 last year.
Customer Acquisition, Traffic and Broad-based Strength
Management reported higher customer traffic was the primary driver of comps, with gains from new and lapsed customers, increased shopping frequency among existing customers, and broader demographic appeal including younger shoppers. Strength was broad based across merchandise categories and geographies (Midwest highlighted).
Inventory Strategy to Support Assortment and Margins
Quarter-end consolidated inventories increased 18%. Packaway represented 36% of inventory (down from 38% a year ago). Management is using higher inventory to broaden on-floor assortment, maintain fast inventory turns, and said inventory composition has supported higher merchandise margins.
Accelerated Store Growth and Execution
Company increased 2026 new-store plan to 115 locations (up from prior guidance of 110). Plans include ~51 store openings in Q3 (41 Ross, 10 dd's) and approximately 5–10 relocations/closures. Management cited strong performance from recent openings and expansion into the Northeast.
Capital Return Activity
Repurchased ~1.4 million shares during the quarter for ~$319 million under a $2.55 billion authorization. Management remains on track to repurchase $1.275 billion in stock during 2026.

MX:ROST Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 12, 2026
2026 (Q3)
32.69 / -
28.024―
2026 (Q2)
34.52 / 36.54
27.66932.05% (+8.87)
2026 (Q1)
30.70 / 35.83
26.07337.41% (+9.76)
2025 (Q4)
33.75 / 35.47
31.74911.73% (+3.72)
2025 (Q3)
25.17 / 28.02
26.256.76% (+1.77)
2025 (Q2)
27.23 / 27.67
28.201-1.89% (-0.53)
2025 (Q1)
25.61 / 26.07
25.8960.68% (+0.18)
2024 (Q4)
29.39 / 31.75
32.281-1.65% (-0.53)
2024 (Q3)
24.78 / 26.25
23.5911.28% (+2.66)
2024 (Q2)
26.52 / 28.20
23.41320.45% (+4.79)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed