On August 21, Ross rose 8.63% overnight, trading at $248.75/share, after the company delivered a blowout fiscal Q2 earnings report that far exceeded Wall Street expectations.
Ross reported Q2 EPS of $2.66, beating the analyst consensus estimate of $1.94-$1.95 by approximately 37%, representing a 70.5% year-over-year increase from $1.56. Revenue rose to $6.265 billion from $5.53 billion a year earlier, surpassing the $6.16-$6.18 billion estimate. The outperformance was driven by robust store traffic, with Placer.ai data showing a 16.4% year-over-year increase in foot traffic during the quarter, alongside tariff-related refund benefits.
The company raised its full-year fiscal 2026 EPS guidance to $8.61-$8.77, significantly above the prior forecast of $7.50-$7.74 and the analyst estimate of $7.89. Ross also increased its new store opening plan to 115 locations and repurchased 1.4 million shares for $319 million during Q2. This marks the second consecutive quarter of guidance raises, underscoring the resilience of off-price retail amid consumer trade-down trends.
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