Ross Stores, Inc. reported significant financial growth in its first quarter of fiscal 2026, with sales reaching $6.01 billion, a 21% increase from $4.98 billion in the same period last year. The company's operating income also rose to $804 million, compared to $606 million in the first quarter of fiscal 2025. This growth translated into net earnings of $650 million, up from $479 million, resulting in diluted earnings per share of $2.02, compared to $1.47 in the prior year. The increase in sales was primarily driven by a 17% rise in comparable store sales, attributed to an 11% increase in customer traffic and a 6% increase in average transaction value.
In terms of operational metrics, Ross Stores expanded its footprint, opening 17 new stores during the quarter, bringing the total to 1,917 Ross Dress for Less locations and 365 dd’s DISCOUNTS stores. The company plans to continue this expansion, targeting approximately 110 new store openings for the fiscal year, including 85 Ross and 25 dd’s DISCOUNTS locations. The strategic focus on enhancing the in-store shopping experience and broadening merchandise assortments is expected to further drive customer engagement and sales growth.
The company's cost of goods sold increased to $4.23 billion, but as a percentage of sales, it decreased to 70.4% from 71.8% in the previous year, reflecting improved merchandise margins. Selling, general, and administrative expenses also rose to $976 million, primarily due to higher store-related costs. Despite these increases, operating income as a percentage of sales improved to 13.4%, up from 12.2% in the prior year, indicating effective cost management alongside revenue growth.
Looking ahead, Ross Stores remains optimistic about its growth trajectory, supported by a strong cash position of $4.13 billion as of May 2, 2026, and a $1.3 billion revolving credit facility. The company has also initiated a new stock repurchase program, allowing for the repurchase of up to $2.55 billion of its common stock over the next two years. The board declared a quarterly cash dividend of $0.445 per share, reflecting confidence in the company's financial health and commitment to returning value to shareholders. Ross Stores anticipates that its strategic initiatives, including store expansion and enhanced marketing efforts, will continue to bolster its performance in the coming quarters.
About ROSS STORES, INC.
Ross Stores, Inc. operates two off-price retail brands, Ross Dress for Less and dd’s DISCOUNTS, offering first-quality, name-brand apparel, accessories, footwear, and home goods at significant discounts. Serving primarily middle- and lower-income consumers across the U.S., the company focuses on value, wide product assortments, and organized store environments. Its business model emphasizes opportunistic purchasing, low operating costs, and strategic store locations to deliver competitive prices and convenience.
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