Ross Stores Q2 revenue jumps 13 percent driven by customer traffic

American off-price retailer Ross Stores has posted its financial results for the 13-week quarter ended August 1, 2026, reporting revenue growth driven by customer foot traffic and tariff refunds.

Sales for the second quarter increased 13 percent to 6.3 billion dollars, compared to 5.5 billion dollars in 2025. Comparable store sales rose 10 percent for the period, following a 2 percent gain in the previous year. Net income reached 851 million dollars, up from 508 million dollars in the prior year period, while earnings per share were 2.66 dollars compared to 1.56 dollars in the second quarter of 2025.

Second quarter operating profits reached 1.1 billion dollars, which included approximately 253 million dollars from International Emergency Economic Powers Act (IEEPA) tariff refunds. Operating margin increased by 610 basis points, including 405 basis points from the refunds. Excluding this benefit, operating margin expanded by 205 basis points, surpassing company projections of 130 to 150 basis points.

Ross Stores chief executive officer, Jim Conroy, commented: “We achieved stellar sales and earnings growth in the second quarter. I am incredibly proud of our teams across the Company, whose dedication and strong execution drove these outstanding results. Our performance was fueled by our compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience.”

Conroy added that comparable store sales growth was primarily driven by customer traffic, supported by an increase in new customers and higher engagement from existing shoppers.

For the first six months of fiscal 2026, total sales rose 17 percent to 12.3 billion dollars, up from 10.5 billion dollars in 2025, with six-month comparable store sales up 13 percent. Net income for the six-month period stood at 1.5 billion dollars, while earnings per share reached 4.69 dollars, compared to 3.03 dollars in the first half of 2025.

During the second quarter, the company repurchased 1.4 million shares of common stock for 319 million dollars under its two-year 2.55 billion dollar authorization approved in March 2026. The retailer remains on track to repurchase 1.275 billion dollars in common stock during fiscal 2026.

The retailer opened 47 new stores during the second quarter, comprising 35 Ross Dress for Less locations and 12 dd’s Discounts stores. Consequently, the business raised its fiscal 2026 expansion plans to 115 new locations, consisting of approximately 90 Ross Dress for Less and 25 dd’s Discounts stores.

Looking ahead, Ross Stores expects comparable store sales to increase 6 percent to 7 percent in the third quarter and 4 percent to 5 percent in the fourth quarter. Projected earnings per share ranges for the third and fourth quarters are set at 1.75 to 1.83 dollars and 2.17 to 2.26 dollars, respectively.

Full-year fiscal 2026 earnings per share projections have been raised to a range of 8.61 to 8.77 dollars, which includes the 0.60 dollar benefit per share from the second quarter IEEPA tariff refunds.