Earnings call analysis

Ross Stores (ROST) Q2 FY2026 Earnings Call: Guidance and Outlook

The company provided specific guidance for the third and fourth quarters of 2026 and raised its full-year earnings per share outlook. The outlook assumes continued momentum despite more challenging year-over-year comparisons.

About Ross Stores. , through its various subsidiaries, manages a chain of off-price retail establishments focusing on apparel and home goods. These stores operate under two main brand names: Ross Dress for Less and dd's DISCOUNTS. Their product selection primarily includes clothing, accessories, footwear, and household decor.

Call date

Aug 20, 2026

Sentiment score

+45 Positive

Management tone, -100 to +100

Sentiment change

-10

vs Q1 FY2026 call

Sector

Consumer Discretionary, Specialty Retail

Next report

Nov 19, 2026

View calendar

Quarterly guidance

Q3 2026 Comparable Store Sales: 6% to 7% increase
Q3 2026 EPS: $1.75 to $1.83
Q3 2026 Total Sales: 9% to 11% increase
Q4 2026 Comparable Store Sales: 4% to 5% increase
Q4 2026 EPS: $2.17 to $2.26

Annual guidance

Full-year 2026 EPS: $8.61 to $8.77
New store openings: 115 locations

Outlook

Consumer demand: Management sees broad-based strength across all merchandise categories and geographies, with traffic as the primary driver.
Freight costs: Domestic freight is expected to deleverage due to higher fuel prices, which are not hedged.
Inventory: The company plans to maintain flexibility in its open-to-buy to capitalize on closeout opportunities.
Pricing: The company intends to maintain its value-focused pricing strategy, with only modest low-single-digit AUR increases expected.
Growth initiatives: Many initiatives in marketing, merchandising, and store operations are still in the early stages and are expected to drive future growth.
Vendor supply: Closeout opportunities remain strong, and the company expects to continue securing its fair share of goods.

Sources and method

Dombey's summary of the Ross Stores Q2 FY2026 earnings call held Aug 20, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.

Updated Nov 9, 2026. All earnings call analyses

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