Ross Stores Q4 2025: Sales up 12 percent, exceeding projections

US discount retailer Ross Stores has announced financial results for the 52-week fiscal year ended January 31, 2026, revealing record annual sales and a significant acceleration in momentum during the fourth quarter.

The group saw total sales for the full year reach 22.8 billion dollars, representing an 8 percent increase compared to 21.1 billion dollars in fiscal 2024. Comparable store sales grew 5 percent for the year, building upon a 3 percent gain in the previous period. Net income for fiscal 2025 was 2.1 billion dollars, with earnings per share (EPS) rising to 6.61 dollars from 6.32 dollars in the prior year.

Performance driven by strong fourth quarter results

In the 13-week fourth quarter, Ross experienced a 12 percent growth in sales, totaling 6.6 billion dollars. This performance was underpinned by a 9 percent increase in comparable store sales, which significantly exceeded internal projections. The operating margin for the quarter reached 12.3 percent, surpassing the company's planned range of 11.5 percent to 11.8 percent.

Ross chief executive officer, Jim Conroy, attributed the quarterly success to compelling merchandise assortments and higher customer engagement. Conroy stated: “We are pleased to report that business momentum accelerated further in the fourth quarter, with both sales and earnings significantly surpassing our expectations.”

Strategic shareholder returns and dividend increases

The board of directors has approved a new two-year stock repurchase authorization of 2.55 billion dollars for fiscal 2026 and 2027. This represents a 21 percent increase over the previous program. Additionally, the company authorized a 10 percent increase in its quarterly cash dividend to 0.445 dollars per share, payable on March 31, 2026.

During the fourth quarter, Ross repurchased 1.5 million shares for 262 million dollars. For the full fiscal year, the retailer repurchased a total of 7.1 million shares for an aggregate price of 1.05 billion dollars, successfully completing its prior two-year program.

Outlook for fiscal 2026 and spring season

Looking ahead to the spring/summer 2026 (SS26) season, Ross has issued an optimistic forecast based on early performance. For the first quarter ending May 2, 2026, comparable store sales are expected to increase between 7 percent and 8 percent. EPS for the first quarter is projected to be between 1.60 dollars and 1.67 dollars.

For the full fiscal year ending January 30, 2027, the company projects year-over-year comparable store sales growth of 3 percent to 4 percent. Based on these targets, Ross estimates fiscal 2026 EPS to fall within the range of 7.02 dollars to 7.36 dollars.

Conroy concluded that the company remains well-positioned to capture market share despite previous macroeconomic challenges, such as tariffs and consumer uncertainty. He noted that the group enters the new year with a healthy balance sheet and a focus on disciplined execution.