Ross Stores (ROST) shares jumped in after-hours trading after the retailer reported stronger second-quarter sales, earnings, and comparable-store growth, with quarterly revenue reaching $6.3 billion and earnings per share of $2.66 coming in well above the company's own guidance. Alongside the results, Ross raised its full-year earnings outlook and increased its planned store openings for fiscal 2026.

ROST closed the regular session 2.43% lower at $228.99 before surging 6.79% to $244.53 in after-hours trading following the release of the results.

Ross Stores Q2 Sales Rise 13% as Customer Traffic Strengthens

Ross Stores reported second-quarter sales of $6.3 billion, up 13% from $5.5 billion in the same quarter one year earlier. Comparable-store sales increased 10%, an acceleration from the 2% gain recorded during the same quarter last year. Customer traffic remained the main driver behind the stronger comparable-store performance, a detail analysts watch closely because traffic-led gains reflect more shoppers coming through the door rather than only higher spending per visit. Ross operates in off-price retail alongside rivals such as TJX Companies, whose T.J. Maxx and Marshalls banners compete directly with Ross Dress for Less, and Burlington; the format is built on buying excess inventory and reselling brand-name goods below conventional retail prices, which positions these chains to appeal to value-focused shoppers.

Net income reached $851 million during the quarter, compared with $508 million in the previous-year period. Earnings per share climbed to $2.66 from $1.56 one year earlier. The latest figure also exceeded management's previous guidance range of $1.85 to $1.93.

Operating profit reached $1.1 billion, helped partly by $253 million in tariff refunds under the International Emergency Economic Powers Act (IEEPA). Those refunds contributed about $0.60 per share to quarterly earnings and lifted operating margins. However, operating margin still improved 205 basis points when management excluded the tariff-related benefit. The refunds are also a one-time item that will not repeat in future quarters; even setting aside the roughly $0.60 per-share benefit, second-quarter earnings of about $2.06 would still have exceeded the company's guidance range.

Ross Raises 2026 Earnings Guidance After Strong First Half

Ross Stores increased its fiscal 2026 earnings forecast following its strong first-half results. The company now expects full-year earnings per share between $8.61 and $8.77. That forecast includes the approximate $0.60 per-share benefit from tariff refunds recorded during the second quarter, implying an underlying range of roughly $8.01 to $8.17 once that one-time gain is stripped out.

For the third quarter, management expects comparable-store sales to increase between 6% and 7%. The company projects third-quarter earnings per share between $1.75 and $1.83.

Ross also expects fourth-quarter comparable sales growth between 4% and 5%. Fourth-quarter earnings per share should range from $2.17 to $2.26 under the updated outlook.

Ross raised those projections despite tougher year-over-year comparisons expected during the second half of the fiscal year. Strong traffic and improving store performance supported management's decision to lift its expectations. The guided moderation from 10% second-quarter comps to 6% to 7% and then 4% to 5% gives investors a concrete yardstick for judging whether demand momentum holds as the year progresses into the holiday-heavy fourth quarter.

Ross Expands Store Growth Plan and Continues Share Buybacks

Ross Stores also increased its 2026 expansion plan after opening 47 locations during the second quarter. Those openings included 35 Ross Dress for Less stores and 12 dd's DISCOUNTS locations.

The company, which operates under the Ross Dress for Less and dd's DISCOUNTS banners, now plans to open 115 new stores during the full fiscal year. The updated plan includes about 90 Ross Dress for Less stores and 25 dd's DISCOUNTS locations. Management previously targeted a lower number of openings before raising the plan following recent performance. The expansion reflects continued demand across both established and newer markets. Store growth carries particular weight for Ross because the chain sells only through its physical locations, operating more than 2,000 US stores with no e-commerce site, which makes new openings its main lever for adding selling capacity.

Ross also repurchased 1.4 million shares for $319 million during the second quarter. Those purchases fall under a $2.55 billion authorization approved by the board in March 2026. The company still expects to repurchase $1.275 billion of common stock during fiscal 2026.