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Get filing alertsRoss Stores reports Q2 sales up 13%, EPS $2.66 including $0.60 tariff refund; raises FY guidance
Filed August 20, 2026 · Period ending August 20, 2026 · ~1 min read
Key Changes
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high
Q2 sales rose 13% to $6.3B with 10% comp growth driven by traffic; EPS of $2.66 included $0.60 from $253M in IEEPA tariff refunds, well above $1.85–$1.93 guidance. Excluding refunds, operating margin expanded 205 bps, exceeding 130–150 bps plan.
Exhibit 99.1 view on EDGAR → -
high
Raised FY2026 EPS guidance to $8.61–$8.77 (includes $0.60 tariff benefit). Q3 comp sales projected 6–7% with EPS $1.75–$1.83; Q4 comp sales 4–5% with EPS $2.17–$2.26.
Exhibit 99.1 view on EDGAR → -
medium
Increased 2026 store opening plan to 115 locations (90 Ross, 25 dd's DISCOUNTS) from prior plan, citing success of expansion strategy across new and existing markets. Opened 47 stores in Q2.
Exhibit 99.1 view on EDGAR → -
medium
Repurchased 1.4M shares for $319M in Q2 under $2.55B two-year authorization approved March 2026. On track for $1.275B total buybacks in FY2026.
Exhibit 99.1 view on EDGAR → -
high
First half sales rose 17% to $12.3B with 13% comp growth; EPS $4.69 vs. $3.03 prior year, including $0.60 tariff benefit.
Exhibit 99.1 view on EDGAR →
Summary
Ross Stores delivered a strong second quarter with sales up 13% to $6.3 billion and comparable store sales up 10%, driven primarily by customer traffic. Earnings per share of $2.66 significantly exceeded guidance of $1.85–$1.93, though the beat included a $0.60 benefit from approximately $253 million in IEEPA tariff refunds.
Even excluding this one-time benefit, operating margin expanded 205 basis points, well above the company's plan of 130–150 basis points, demonstrating underlying operational strength. Management raised full-year fiscal 2026 EPS guidance to $8.61–$8.77 (including the $0.60 tariff benefit) and increased the new store opening plan to 115 locations from a prior target, citing success in both new and existing markets.
The company repurchased $319 million in shares during the quarter and remains on track for $1.275 billion in total fiscal 2026 buybacks under its $2.55 billion authorization. For retail investors, the core business momentum—10% comp growth driven by traffic and margin expansion exceeding plan—is the key takeaway beyond the tariff windfall. The raised guidance and accelerated store growth signal management confidence in sustaining the momentum through the second half.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Ross Stores disclosed Q2 FY2026 financial results for the quarter ended August 1, 2026 via press release.
Added in current filing · verify on EDGAR →
On August 20, 2026, the Company issued a press release regarding the Company’s financial results for its fiscal quarter ended August 1, 2026.
Ross Stores announced financial results for its second fiscal quarter ended August 1, 2026. The 8-K itself does not disclose specific financial metrics; those details are contained in the attached press release (Exhibit 99.1).
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
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.
Ross Stores reported second quarter fiscal 2026 sales of $6.3 billion, up 13% year-over-year, with comparable store sales up 10% driven primarily by customer traffic. Operating income was $1.1 billion, including approximately $253 million in IEEPA tariff refunds that contributed 405 basis points to operating margin expansion and approximately $0.60 to earnings per share. Excluding the tariff refunds, operating margin still expanded 205 basis points, exceeding the company's plan of 130 to 150 basis points. Earnings per share of $2.66 significantly exceeded guidance of $1.85 to $1.93.
Added in current filing · view on EDGAR →
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. ... 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.
Ross Stores raised its fiscal 2026 full-year earnings per share guidance to $8.61 to $8.77, which includes the approximate $0.60 benefit from second quarter IEEPA tariff refunds. The company also raised second-half guidance, projecting Q3 comparable store sales growth of 6% to 7% with EPS of $1.75 to $1.83, and Q4 comparable store sales growth of 4% to 5% with EPS of $2.17 to $2.26.
Added in current filing · view on EDGAR →
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.
For the first six months of fiscal 2026, Ross Stores reported sales of $12.3 billion, up 17% from $10.5 billion in the prior year, with comparable store sales up 13%. Net income was $1.5 billion versus $987 million last year, and earnings per share were $4.69 compared to $3.03 in the prior year period. These results include the $253 million IEEPA tariff refund benefit of approximately $0.60 per share.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 21, 2026 · How we verify