Ross Stores Raises FY26 EPS Guidance, Boosts Buyback to $2.55B
Ross Stores beat fourth-quarter estimates with adjusted EPS of $2.00 versus $1.88 expected and revenue of $6.64 billion versus $6.38 billion, driving intra-day shares over 7% higher. The retailer raised fiscal 2026 EPS guidance to $7.02–$7.36, authorized a $2.55 billion buyback and lifted its dividend by 10%.
1. Q4 Earnings Beat
Ross Stores delivered adjusted EPS of $2.00 in Q4, surpassing the consensus $1.88 and posted $6.64 billion in revenue versus $6.38 billion expected. Same-store sales climbed 9%, lifting overall sales by 12% year-over-year and pushing operating margin to 12.3%, above its 11.5%–11.8% forecast.
2. Fiscal 2025 Results
For fiscal 2025, the off-price retailer achieved record revenue of $22.8 billion, up 8% from $21.1 billion, with comparable store sales rising 5%. This performance demonstrated resilience in consumer spending and operational efficiency throughout the year.
3. FY26 Outlook
Looking ahead, Ross Stores forecasts first-quarter comparable store sales growth of 7%–8% and EPS between $1.60 and $1.67. Full-year 2026 guidance calls for comparable sales up 3%–4% and EPS of $7.02–$7.36, implying potential earnings growth near 9% at the midpoint.
4. Capital Return Programs
The board approved a two-year $2.55 billion share repurchase program—a 21% increase over the prior authorization—and raised its quarterly dividend by 10% to $0.445 per share. These measures underscore management’s commitment to returning capital to shareholders.