Ross Stores, Inc. (NASDAQ: ROST) reported fourth-quarter results that exceeded Wall Street expectations, sending shares more than 7% higher intra-day Wednesday.
The off-price retailer posted adjusted earnings per share of $2.00, surpassing analyst forecasts of $1.88. Revenue reached $6.64 billion, also beating the $6.38 billion consensus estimate.
Sales increased 12% year over year, supported by strong comparable store sales growth of 9%.
Operating margin for the fourth quarter came in at 12.3%, above the company’s guidance range of 11.5% to 11.8%, primarily due to stronger-than-expected sales. For fiscal 2025, Ross Stores reported record revenue of $22.8 billion, representing an 8% increase from $21.1 billion in the previous year, while comparable store sales rose 5%.
Looking ahead, the company expects first-quarter fiscal 2026 comparable store sales to increase between 7% and 8%. Earnings per share for the quarter are projected in a range of $1.60 to $1.67, compared with $1.47 in the same period last year. The midpoint of $1.64 would represent growth of approximately 11.6%.
For the full fiscal year 2026, Ross Stores forecasts comparable sales growth of 3% to 4% and earnings per share between $7.02 and $7.36, compared with $6.61 in fiscal 2025. The midpoint of $7.19 implies an increase of roughly 8.8%.
The board approved a new two-year $2.55 billion share repurchase authorization covering fiscal 2026 and 2027, representing a 21% increase compared with the previous program. Directors also approved a 10% increase in the quarterly dividend to $0.445 per share, payable March 31, 2026.
