Page 1

ROSS Ross Stores Reports Strong Second Quarter Sales and Earnings Results August 20 , 2026 Raises Second Half and Fiscal 2026 Outlook DUBLIN , Calif . , Aug. 20 , 2026 / PRNewswire / -- Ross Stores , Inc. ( Nasdaq : ROST ) today reported financial results for the 13 - week quarter ended August 1 , 2026 . Highlights : • Total sales for the second quarter of fiscal 2026 increased 13 % versus last year , with comparable store sales up a very strong 10 % , primarily driven by customer traffic . • Second quarter operating profits were $ 1.1 billion , which includes approximately $ 253 million from IEEPA tariff refunds . Operating margin increased 610 basis points , including 405 basis points from the tariff refunds . Excluding this benefit , operating margin increased by 205 basis points , well above the Company's plan for an increase of 130 to 150 basis points . • Earnings per share for the second quarter were $ 2.66 , which includes an approximate $ 0.60 per share benefit from the tariff refunds , well above our guidance of $ 1.85 to $ 1.93 . • Opened 47 new stores during the quarter , including 35 Ross and 12 dd's DISCOUNTS . Increasing 2026 store opening plans to 115 new locations . Jim Conroy , Chief Executive Officer , commented , " We achieved stellar sales and earnings growth in the second quarter . I am incredibly proud of our teams across the Company , whose dedication and strong execution drove these outstanding results . Our performance was fueled by our compelling merchandise offerings , engaging marketing initiatives , and continued enhancements to the in - store experience . We were pleased to see strength throughout the quarter , with comparable store sales growth once again primarily driven by customer traffic . Importantly , that growth was supported by both an increase in new customers and higher engagement from existing customers . 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 . " Second Quarter and First Six Months Results Sales for the second quarter increased 13 % to $ 6.3 billion , up from $ 5.5 billion in 2025. Comparable store sales rose a very strong 10 % for the quarter on top of a 2 % gain last year . Net income was $ 851 million versus $ 508 million last year , while earnings per share were $ 2.66 compared to $ 1.56 per share in the prior year period . For the first six months of fiscal 2026 , sales increased a robust 17 % to $ 12.3 billion , up from $ 10.5 billion in 2025. Comparable store sales for the six - month period were up 13 % . Net income was $ 1.5 billion versus $ 987 million last year , while earnings per share were $ 4.69 compared to $ 3.03 per share in the prior year period . Both the second quarter and first six months 2026 results include about $ 253 million in IEEPA tariff refunds , benefiting earnings per share by approximately $ 0.60 . Update on Shareholder Payouts During the 2026 second quarter , a total of 1.4 million shares of common stock were repurchased for an aggregate price of $ 319 million under the Company's two - year $ 2.55 billion authorization approved by its Board of Directors in March 2026. The Company remains on track to buy back a total of $ 1.275 billion in common stock during fiscal 2026 . Fiscal 2026 Guidance Mr. Conroy commented , " Looking ahead , we exited the second quarter with building momentum and are excited for the plans we have in place entering the Fall season . Despite facing significantly more challenging year - over - year comparisons in the back half , we are raising our outlook for both the third and fourth quarters . Comparable store sales are now expected to increase 6 % to 7 % in the third quarter and 4 % to 5 % in the fourth quarter . If the second half of 2026 performs in line with these sales projections , our earnings per share ranges for the third and fourth quarters are projected to be $ 1.75 to $ 1.83 and $ 2.17 to $ 2.26 , respectively . " Mr. Conroy continued , " Based on our strong first half results and our updated second half guidance , we are increasing our 2026 fiscal year earnings per share projections to be in the range of $ 8.61 to $ 8.77 , which again includes an approximate $ 0.60 earnings per share benefit from IEEPA tariff refunds recognized in the second quarter . From a store growth perspective , we continue to be encouraged by the success of our expansion strategy across both new and existing markets . As a result , we are increasing our 2026 new store opening plan to 115 locations , consisting of approximately 90 Ross Dress for Less and 25 dd's DISCOUNTS stores . " Mr. Conroy concluded , " The year is off to a very strong start with the entire organization executing at a high level . As our efforts to improve topline growth continue , we remain focused on disciplined , consistent execution across the business . Moving forward , we believe we are well positioned to capture additional market share and drive profitable growth over the long term . " The Company will host a conference call on Thursday , August 20 , 2026 at 4:15 p.m. Eastern time to provide additional details concerning its second