Ross Stores Inc. (ROST) delivered a solid second-quarter report after the market closed on Thursday, beating expectations on both the top and bottom lines. The specialty retailer reported revenue of approximately $6.27 billion, surpassing the $6.18 billion analysts had projected, and earnings per share of $2.66, well above the $1.94 consensus estimate.
Total revenue increased 13% year-over-year, with comparable store sales climbing 10%, primarily driven by customer traffic. CEO Jim Conroy highlighted the broad-based growth, noting, "Importantly, that growth was supported by both an increase in new customers and higher engagement from existing customers." He added, "Our performance was fueled by our compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience. We were pleased to see strength throughout the quarter."
Looking ahead, Ross Stores raised its full-year earnings per share guidance from a range of $7.50 to $7.74 to a new range of $8.61 to $8.77, versus analyst estimates of $7.79. The company also provided third-quarter EPS guidance of $1.75 to $1.83 and fourth-quarter EPS of $2.17 to $2.26, both above current analyst expectations.
In the second quarter, Ross Stores repurchased 1.4 million shares for $319 million. The company remains on track to repurchase $1.275 billion of its common stock in fiscal 2026.
Investors reacted positively to the news, with Ross Stores shares up 4.20% in after-hours trading, reaching $238.60 at the time of publication on Thursday.
