Ross Stores reported a 13% surge in second-quarter sales to $6.3 billion, driven by strong customer traffic that pushed comparable store sales up 10%, marking another robust quarter for the off-price retailer as consumers continue seeking value amid economic pressures.
The quarter, which ended August 1, 2026, significantly exceeded Wall Street expectations. Earnings per share reached $2.66, well above the company’s guidance of $1.85 to $1.93, though this figure includes approximately $0.60 per share from tariff refunds. The comparable store sales gain came on top of a 2% gain in the prior year quarter, demonstrating sustained momentum.
CEO Jim Conroy attributed the strong performance to “compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience.” The company noted that growth was supported by both new customer acquisition and higher engagement from existing customers, suggesting the appeal extends across the customer base.
Ross’s Q2 performance followed an exceptional first quarter, where comparable store sales surged 17% to $6.0 billion in total sales, a 21% increase year-over-year. The sustained strength across consecutive quarters reflects broader consumer trends toward off-price retail, as shoppers seek lower prices in response to inflation and economic uncertainty.
The company raised its full-year outlook and expanded its growth plans. Ross increased its 2026 new store opening plan to 115 locations, consisting of approximately 90 Ross Dress for Less and 25 dd’s DISCOUNTS stores, up from the previous plan. The company also raised guidance for comparable store sales in the second half, now expecting 6% to 7% growth in the third quarter and 4% to 5% in the fourth quarter, despite more challenging year-over-year comparisons.
For the first six months of fiscal 2026, Ross reported sales of $12.3 billion, up 17% from $10.5 billion in the prior year. Comparable store sales for the six-month period were up 13%, and net income reached $1.5 billion compared to $987 million in the same period last year. The company remains on track to repurchase $1.275 billion in common stock during fiscal 2026, demonstrating confidence in its financial position.
Off-price retail has emerged as a standout performer in the broader retail landscape. The off-price retail market is valued at approximately $405 billion in 2026 and is expected to grow at a compound annual growth rate of 8.9% through 2033, according to market research. Ross’s performance reflects this sector strength, as consumers increasingly prioritize value and discount options over traditional department store shopping.
Sources
- Ross Stores Investor Relations — Official Q2 2026 earnings press release with financial results, comparable store sales data, and full-year guidance updates
- Retail TouchPoints — Coverage of Q2 results including total sales figures of $6.3 billion and comparable store sales growth of 10%
- Quartz — Q2 earnings report confirming revenue of $6.26 billion and comparable store sales increase of 10% driven by customer traffic
- Chain Store Age — Analysis of Q2 performance and new store opening expansion plans to 115 locations
- Coherent Market Insights — Off-price retail market valuation and growth rate data for 2026-2033 period
