Ross Stores (ROST) Q2 2026 earnings summary

Executive summary

• Q2 2025 sales rose 5% year-over-year to $5.5B, with comparable store sales up 2% and sequential improvement, especially strong in July and the early back-to-school season.

• Net earnings for Q2 were $508M, down from $527M last year, with EPS of $1.56, including a $0.11 per share negative tariff impact.

• 31 new stores were opened in Q2, including the first in Puerto Rico and expansion in the New York metro area, with a full-year plan for about 90 new locations.

• Inventory levels increased 5% year-over-year, with packaway merchandise at 38% of total inventories.

• First half 2025 sales reached $10.5B, up from $10.1B, with EPS at $3.03 and net income of $987M.

Financial highlights

• Operating margin for Q2 was 11.5%, down 95 bps year-over-year, mainly due to tariffs and distribution costs.

• Gross margin declined 70 bps, primarily from tariffs and higher distribution costs.

• Year-to-date sales grew to $10.5B, with comparable sales up 1% for the first half.

• SG&A deleveraged by 25 bps, partly due to CEO transition costs.

• Cash and cash equivalents at August 2, 2025, were $3.85B, down from $4.67B a year earlier.

Outlook and guidance

• Comparable store sales growth of 2%-3% expected for Q3 and Q4 2025.

• Q3 EPS guidance: $1.31-$1.37 (vs. $1.48 last year); Q4: $1.74-$1.81 (vs. $1.79 last year), both including tariff impacts.

• Full-year 2025 EPS forecast: $6.08-$6.21, down from $6.32 last year, with $0.22-$0.25 per share tariff impact.

• Capital expenditures for fiscal 2025 projected at $800M, focused on new stores, supply chain, and IT investments.

• 40 new stores planned for Q3; 90 for the year.