Ross Stores (NASDAQ:ROST) Releases Earnings Results, Beats Expectations By $0.10 EPS

Ross Stores (NASDAQ:ROST) issued its earnings results on Tuesday. The apparel retailer reported $2.00 EPS for the quarter, beating analysts’ consensus estimates of $1.90 by $0.10, Briefing.com reports. The business had revenue of $6.64 billion during the quarter, compared to analysts’ expectations of $6.42 billion. Ross Stores had a net margin of 9.43% and a return on equity of 37.43%. The company’s quarterly revenue was up 12.2% compared to the same quarter last year. During the same period in the prior year, the business earned $1.65 earnings per share.

Here are the key takeaways from Ross Stores’ conference call:

• Q4 momentum was strong — total sales rose 12% to $6.6B and comparable store sales climbed 9%, driven primarily by higher transactions and broad-based strength across categories (notably shoes and cosmetics) and regions.
• Management attributes the outperformance to merchandising, marketing and store/operational improvements — branded assortments, a successful holiday campaign, better in‑store execution and strong supply‑chain performance drove traffic gains and faster inventory turns.
• Store growth and inventory position look constructive — inventories were up 8% with packaway at 37% of inventory, the company opened 90 net new stores in 2025 and plans to open 110 new locations in 2026 (≈85 Ross, 25 dd’s) while targeting long‑term footprints of 2,900 Ross and 700 dd’s.
• Capital returns were increased — Ross completed a $2.1B buyback, announced a new $2.55B repurchase authorization and raised the quarterly dividend by 10% to $0.445, alongside solid FY results (sales $22.8B; EPS $6.61).
• 2026 guidance is constructive but mixed — Q1 comps of +7%–8% (EPS $1.60–$1.67) and FY comps of +3%–4% (EPS $7.02–$7.36) are offset by expected near‑term margin pressures from a recent DC opening, packaway timing and higher incentive costs, with management saying margin expansion remains possible over time.

Ross Stores Trading Up 8.0%

Shares of Ross Stores stock opened at $213.52 on Thursday. The stock has a 50 day moving average of $192.02 and a 200 day moving average of $171.24. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.90 and a current ratio of 1.52. The firm has a market capitalization of $69.06 billion, a price-to-earnings ratio of 32.30, a PEG ratio of 2.94 and a beta of 0.97. Ross Stores has a fifty-two week low of $122.36 and a fifty-two week high of $216.80.

Ross Stores Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 13th will be issued a $0.445 dividend. This is a boost from Ross Stores’s previous quarterly dividend of $0.41. This represents a $1.78 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Friday, March 13th. Ross Stores’s payout ratio is currently 24.51%.

Hedge Funds Weigh In On Ross Stores

Several large investors have recently modified their holdings of ROST. Summit Securities Group LLC boosted its position in Ross Stores by 823.6% in the 4th quarter. Summit Securities Group LLC now owns 979 shares of the apparel retailer’s stock valued at $176,000 after buying an additional 873 shares during the period. Larson Financial Group LLC raised its stake in shares of Ross Stores by 93.5% in the third quarter. Larson Financial Group LLC now owns 1,045 shares of the apparel retailer’s stock valued at $159,000 after acquiring an additional 505 shares in the last quarter. Zions Bancorporation National Association UT raised its stake in shares of Ross Stores by 38.4% in the fourth quarter. Zions Bancorporation National Association UT now owns 790 shares of the apparel retailer’s stock valued at $142,000 after acquiring an additional 219 shares in the last quarter. MUFG Securities EMEA plc purchased a new position in Ross Stores in the second quarter valued at $124,000. Finally, Haverford Trust Co grew its stake in Ross Stores by 16.7% during the 4th quarter. Haverford Trust Co now owns 672 shares of the apparel retailer’s stock worth $121,000 after purchasing an additional 96 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company’s stock.

Ross Stores News Summary

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Q4 results beat and confident guidance — Ross delivered $2.00 EPS on $6.64B revenue (both above Street estimates) and guided Q1 and FY26 EPS above consensus, signaling momentum into spring. ROSS STORES REPORTS FOURTH QUARTER EARNINGS WELL ABOVE GUIDANCE
• Positive Sentiment: Big shareholder returns — board approved a new two‑year $2.55B repurchase authorization and raised the quarterly dividend ~10% (to $0.445), which supports EPS via buybacks and lifts yield for income investors. ROSS STORES REPORTS FOURTH QUARTER EARNINGS WELL ABOVE GUIDANCE
• Positive Sentiment: Analysts upgrading estimates and raising targets — several firms boosted forecasts and price targets after the print, increasing buy-side conviction and contributing to the rally. Ross Stores Analysts Boost Their Forecasts After Upbeat Q4 Results
• Neutral Sentiment: Sector/strategy tailwind — multiple writeups note a broader “treasure‑hunt” shift to off‑price retail; Ross is benefiting from higher traffic and share gains vs. full‑price peers, which supports longer‑term growth assumptions.
• Neutral Sentiment: Management commentary — CEO said trends improved through the year and the spring season is off to a strong start; this operational color underpins the guidance but will be watched for sustainability. Ross Stores Fourth-Quarter Sales Rise as Traffic Picks Up
• Negative Sentiment: Valuation and profit‑taking risk — some analysts and commentators flag that the post‑earnings pop has stretched valuation (ROST is trading near 52‑week highs), raising pullback risk if growth momentum moderates. Ross Stores: Strong Q4 Results Stretch The Valuation
• Negative Sentiment: Near‑term downgrades and insider/institutional flows — Zacks moved to hold (vs. strong‑buy) and public filings show recent insider sales and mixed institutional activity; these can temper upside if selling broadens. Zacks Research Quiver Quantitative

Wall Street Analysts Forecast Growth

ROST has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Ross Stores from a “hold” rating to a “buy” rating in a report on Saturday, November 15th. TD Cowen restated a “buy” rating on shares of Ross Stores in a research report on Thursday, December 4th. Robert W. Baird set a $200.00 price objective on Ross Stores in a research report on Wednesday, December 17th. JPMorgan Chase & Co. boosted their price objective on Ross Stores from $215.00 to $232.00 and gave the stock an “overweight” rating in a research note on Monday, February 23rd. Finally, UBS Group upped their target price on Ross Stores from $181.00 to $199.00 and gave the company a “neutral” rating in a report on Tuesday, February 17th. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $207.76.

Ross Stores Company Profile

Ross Stores, Inc (NASDAQ: ROST) is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd’s DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross’s business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.