Ross Stores (NASDAQ:ROST) Issues Earnings Results

Ross Stores (NASDAQ:ROST) released its earnings results on Thursday. The apparel retailer reported $2.06 earnings per share for the quarter, beating analysts’ consensus estimates of $1.94 by $0.12, Zacks reports. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%.

Ross Stores Stock Down 2.4%

ROST stock traded down $5.70 during trading on Thursday, reaching $228.99. 5,067,738 shares of the stock were exchanged, compared to its average volume of 2,729,779. The firm’s 50 day moving average is $234.03 and its 200 day moving average is $221.46. The firm has a market cap of $73.46 billion, a P/E ratio of 31.98, a price-to-earnings-growth ratio of 2.64 and a beta of 0.86. The company has a current ratio of 1.54, a quick ratio of 0.94 and a debt-to-equity ratio of 0.12. Ross Stores has a twelve month low of $143.39 and a twelve month high of $257.00.

Ross Stores Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 8th will be paid a dividend of $0.445 per share. This represents a $1.78 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Tuesday, September 8th. Ross Stores’s dividend payout ratio is 24.86%.

Ross Stores News Summary

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

• Positive Sentiment: Ross Stores reported fiscal Q2 sales of approximately $6.3 billion, up 13% year over year, while comparable-store sales rose 10%. Diluted EPS reached $2.66, versus $1.56 a year earlier, and benefited in part from approximately $253 million in IEEPA tariff refunds. Ross Stores Reports Strong Second Quarter Sales and Earnings Results
• Positive Sentiment: Management raised its fiscal 2026 EPS outlook to $8.61–$8.77, well above the previously cited analyst consensus of $7.31. Third- and fourth-quarter EPS guidance also exceeded consensus estimates, supporting expectations for continued earnings momentum.
• Positive Sentiment: The retailer opened 47 stores during the quarter and increased its fiscal 2026 store-opening plan to 115 locations, indicating confidence in expansion opportunities across Ross Dress for Less and dd’s DISCOUNTS.
• Positive Sentiment: Ross Stores maintained its quarterly dividend at $0.445 per share, payable September 30 to shareholders of record September 8.
• Neutral Sentiment: Institutional trading was mixed: 765 investors increased positions in the latest quarter, while 584 reduced them. Large additions from JPMorgan, Invesco, Wellington, and BlackRock were offset by sizable reductions from EdgePoint, Viking, and D.E. Shaw.
• Negative Sentiment: About $253 million of operating income came from tariff refunds, creating a potentially temporary boost and raising questions about how much of the earnings improvement is repeatable through the remainder of fiscal 2026.
• Negative Sentiment: Reported insider activity was one-sided, with eight open-market sales and no purchases over the past six months. Several senior executives, including the COO, CFO, and divisional presidents, sold shares, which may weigh on sentiment.

Wall Street Analysts Forecast Growth

ROST has been the subject of several recent analyst reports. Truist Financial increased their price objective on shares of Ross Stores from $270.00 to $290.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Zacks Research cut shares of Ross Stores from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. JPMorgan Chase & Co. boosted their price objective on Ross Stores from $248.00 to $251.00 and gave the company an “overweight” rating in a research note on Monday, May 18th. Wells Fargo & Company lowered Ross Stores from an “overweight” rating to an “equal weight” rating and set a $245.00 target price on the stock. in a research report on Tuesday, June 23rd. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and set a $230.00 target price on shares of Ross Stores in a research note on Friday, May 22nd. Sixteen analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $244.76.

Institutional Investors Weigh In On Ross Stores

Several hedge funds and other institutional investors have recently modified their holdings of the company. Virtus Advisers LLC acquired a new stake in Ross Stores in the 4th quarter valued at $32,000. Quarry LP increased its stake in Ross Stores by 1,124.0% during the 4th quarter. Quarry LP now owns 306 shares of the apparel retailer’s stock valued at $55,000 after purchasing an additional 281 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new position in Ross Stores during the fourth quarter worth $60,000. Quattro Advisors LLC acquired a new position in Ross Stores during the fourth quarter worth $70,000. Finally, Johnson Financial Group Inc. lifted its stake in shares of Ross Stores by 189.1% in the fourth quarter. Johnson Financial Group Inc. now owns 396 shares of the apparel retailer’s stock valued at $71,000 after buying an additional 259 shares in the last quarter. Institutional investors own 86.86% of the company’s stock.

Ross Stores Company Profile

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.