Ross Stores recently reported a 10% increase in second-quarter comparable-store sales as higher customer traffic drove one of the strongest periods of underlying growth for the off-price retailer.
Total second-quarter sales increased 13% to $6.3 billion from $5.5 billion a year earlier. Comparable-store sales rose 10% on top of 2% growth in the prior-year quarter.
Ross said the comparable-sales increase was primarily driven by customer traffic rather than higher average ticket. Management said the traffic improvement reflected both an increase in new customers and stronger engagement from existing customers.
That distinction is important for an off-price retailer because traffic-driven comparable growth suggests Ross is attracting more shopping visits rather than relying primarily on inflation or higher merchandise prices to generate sales gains.
Net income climbed to $851 million from $508 million, while diluted EPS increased to $2.66 from $1.56.
Those earnings results were helped materially by approximately $253 million of IEEPA tariff refunds, which added roughly $0.60 per share to EPS. Operating margin increased 610 basis points, with tariff refunds contributing 405 basis points of the improvement. Excluding the refunds, operating margin still increased 205 basis points.
Ross also accelerated its store-expansion strategy.
The company opened 47 stores during the quarter, including 35 Ross Dress for Less locations and 12 dd’s DISCOUNTS stores. It increased its fiscal 2026 opening plan to 115 locations, consisting of approximately 90 Ross and 25 dd’s stores.
The retailer raised its outlook for the second half. Ross now expects comparable sales growth of 6% to 7% in the third quarter and 4% to 5% in the fourth quarter.
Full-year EPS guidance increased to $8.61 to $8.77, including the approximately $0.60 benefit from tariff refunds.
KEY QUOTES:
“Comparable store sales growth once again [was] primarily driven by customer traffic.”
Jim Conroy, CEO of Ross Stores
