Top News

• Customer traffic was the primary driver of the 10% comparable-store sales—the second consecutive double-digit quarter.
• Ross sees abundant closeout supply amid softness in mainstream retail going forward.
• The company said that it expects only small price increases in the second half of the year despite higher fuel prices.

Shares of Ross Stores (ROST) surged about 8% in after-hours trading on Thursday, reversing a regular-session decline, after the discount department store operator reported strong second-quarter results and raised its full-year outlook.

ROST’s Q2 Report

Ross Stores said total sales rose 13% to $6.3 billion for the 13 weeks ended August 1, with comparable-store sales up a “very strong” 10%. Operating profits reached $1.1 billion, including about $253 million from Trump tariff refunds. Earnings per share were $2.66, including a roughly $0.60 benefit from the refunds—well above the company’s prior guidance of $1.85 to $1.93.

CEO Highlights Execution And Momentum

Chief Executive Officer Jim Conroy called the results “stellar sales and earnings growth.”

Customer traffic was the primary driver of the 10% comparable-store sales—the second consecutive double-digit quarter. Conroy noted gains from new and lapsed customers, more frequent trips, and higher spending by existing shoppers. New customers spanned a broad range of income levels and ages, including younger shoppers, closely mirroring the existing base. Strength was broad-based across merchandise categories, with home and cosmetics performing strongest.

“These trends reinforce our belief that the actions we are taking are not only driving the current business performance but that we can continue to build on our early successes,” Conroy said. Many of the company’s merchandising, marketing, and store initiatives remain in their “early innings,” leaving significant runway for further growth, he added. Ross also continues to see abundant closeout supply amid softness at mainstream retailers.

“There is plenty of product to continue to fuel the fire,” Conroy said. “There’s a lot of goods being canceled… we expect that to continue. Off-price at the end of the day will probably continue to be a winning sector.”

On pricing, Ross has deliberately limited increases in what customers pay, so its deals remain clearly cheaper than those at regular stores. The company expects only modest low-single-digit price increases in the second half while protecting shoppers facing higher gas and other costs. Elevated fuel prices are creating a modest shipping-cost headwind, and competition for popular brands continues, but management said Ross’s strong growth makes that competition manageable.

Raised Outlook And Expansion Plans

Despite tougher year-over-year comparisons in the second half, Ross raised its outlook. Comparable sales are now expected to rise 6% to 7% in the third quarter and 4% to 5% in the fourth. Full-year fiscal 2026 earnings per share guidance was lifted to $8.61 to $8.77, including the $0.60 tariff benefit.

The company opened 47 new stores in the quarter and increased its 2026 opening plan to 115 locations.

The results build on recent moves, including a March 2026 Board authorization for a two-year $2.55 billion share-repurchase program. Ross bought back 1.4 million shares for $319 million in the second quarter and remains on track for $1.275 billion in fiscal 2026.

How Did ROST Retail Traders React?

On Stocktwits, retail sentiment around ROST stock rose from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, while message volume remained ‘high.’

A Stocktwits user said that the stock’s after-hours jump “may have caught a lot of people flat-footed.”

Another user voiced hopes for multiple price-target hikes following the strong earnings, despite the tough economic environment for the “average Joe.”

ROST stock has gained 27% year-to-date. 

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