Ross Stores (ROST) Q3 2026 earnings summary

Executive summary

• Third quarter sales grew 10% to $5.6 billion, with comparable store sales up 7% year-over-year, driven by strong assortments, marketing, and broad-based category and geographic gains.

• Net income for Q3 was $512 million, up 5% from last year, with EPS rising to $1.58 despite a $0.05 per share negative impact from tariffs.

• 90 new stores opened in 2025, including in Puerto Rico and the New York Metro area, completing the annual expansion plan.

• Strong back-to-school season and effective marketing drove broad-based sales growth and higher customer engagement.

• Branded strategy and new marketing campaigns contributed to sequential business improvement, especially in the ladies' category.

Financial highlights

• Quarterly sales grew to $5.6 billion from $5.1 billion year-over-year; nine-month sales reached $16.1 billion, up 6%.

• Operating margin for Q3 was 11.6%, down 35 basis points year-over-year due to higher cost of goods sold and tariffs.

• Net income for Q3 was $512 million, with diluted EPS of $1.58; year-to-date net income was $1.5 billion, EPS $4.61.

• Cost of goods sold increased 35 basis points; distribution costs rose 60 basis points, offset by lower freight and occupancy costs.

• Net cash provided by operating activities for the nine months was $1.91 billion, up from $1.47 billion in the prior year.

Outlook and guidance

• Q4 comparable store sales forecast raised to 3%-4%, with EPS guidance of $1.77-$1.85.

• Fiscal 2025 EPS guidance increased to $6.38-$6.46, including a $0.16 per share negative tariff impact.

• Q4 operating margin expected between 11.5%-11.8%, lower than last year due to prior year’s facility sale benefit.

• Tariff impact expected to be negligible in Q4, with full-year cost at $0.15-$0.16 per share.

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