Ross Stores (NASDAQ:ROST) Shares Gap Up on Earnings Beat

Ross Stores, Inc. (NASDAQ:ROST)’s share price gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $228.99, but opened at $243.85. Ross Stores shares last traded at $238.85, with a volume of 1,623,663 shares trading hands.

The apparel retailer reported $2.66 EPS for the quarter, beating analysts’ consensus estimates of $1.95 by $0.71. The firm had revenue of $6.26 billion for the quarter, compared to analysts’ expectations of $6.16 billion. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%. The business’s revenue for the quarter was up 13.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.56 earnings per share.

Ross Stores Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be paid a dividend of $0.445 per share. This represents a $1.78 annualized dividend and a yield of 0.7%. The ex-dividend date is Tuesday, September 8th. Ross Stores’s dividend payout ratio (DPR) is currently 24.86%.

Key Stories Impacting Ross Stores

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

• Positive Sentiment: Major earnings and revenue beat: Ross reported diluted EPS of $2.66, up from $1.56 a year earlier and well above the roughly $1.95 analyst consensus. Revenue increased 13.3% to approximately $6.26 billion, topping estimates near $6.16 billion. Ross Stores raises annual profit forecast again on discounted apparel demand
• Positive Sentiment: Customer traffic and comparable sales strengthened: Comparable-store sales rose 10%, with existing and new customers seeking lower prices amid inflation and an uncertain economy. Management said Ross is gaining market share from rivals. Ross Posts 13% Sales Jump as Inflation Drives Shoppers to Off-Price Retailers
• Positive Sentiment: Guidance was raised: Fiscal 2026 EPS is now expected at $8.61–$8.77, substantially above the prior outlook and the reported consensus near $7.31. Third- and fourth-quarter EPS forecasts also came in above analyst expectations. Ross Stores Reports Strong Second Quarter Sales and Earnings Results
• Positive Sentiment: Expansion plans increased: Ross opened 47 stores during the quarter and raised its fiscal-year store-opening target to 115 locations, supporting longer-term sales growth. The company also benefited from approximately $253 million in tariff refunds during the quarter.
• Positive Sentiment: Analyst support improved: Robert W. Baird raised its price target from $250 to $270 and maintained an “Outperform” rating. Benzinga analyst update

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on ROST shares. The Goldman Sachs Group restated a “buy” rating and issued a $270.00 price target on shares of Ross Stores in a research note on Friday, May 22nd. Barclays reaffirmed an “overweight” rating and set a $298.00 price objective on shares of Ross Stores in a research report on Friday. UBS Group set a $239.00 target price on Ross Stores in a research report on Friday. Citigroup restated a “buy” rating on shares of Ross Stores in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $257.00 price target on shares of Ross Stores in a report on Friday, May 22nd. Sixteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $253.47.

Hedge Funds Weigh In On Ross Stores

Institutional investors have recently bought and sold shares of the stock. Ethic Inc. lifted its stake in shares of Ross Stores by 25.6% during the 4th quarter. Ethic Inc. now owns 23,772 shares of the apparel retailer’s stock worth $4,282,000 after acquiring an additional 4,847 shares during the last quarter. National Pension Service increased its stake in Ross Stores by 138.4% in the fourth quarter. National Pension Service now owns 1,300,056 shares of the apparel retailer’s stock worth $234,192,000 after purchasing an additional 754,816 shares during the period. Eurizon Capital SGR S.p.A. bought a new stake in shares of Ross Stores during the fourth quarter worth $204,750,000. NewEdge Wealth LLC boosted its stake in shares of Ross Stores by 99.5% during the fourth quarter. NewEdge Wealth LLC now owns 14,745 shares of the apparel retailer’s stock valued at $2,656,000 after purchasing an additional 7,353 shares during the period. Finally, Jefferies Financial Group Inc. boosted its stake in shares of Ross Stores by 744.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 211,676 shares of the apparel retailer’s stock valued at $38,131,000 after purchasing an additional 186,619 shares during the period. 86.86% of the stock is owned by institutional investors.

Ross Stores Stock Up 4.4%

The business’s fifty day moving average is $233.83 and its two-hundred day moving average is $221.74. The company has a market cap of $76.68 billion, a P/E ratio of 33.39, a price-to-earnings-growth ratio of 2.61 and a beta of 0.86. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.94 and a current ratio of 1.54.

About Ross Stores

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.