On August 21, Ross rose 8.32% in pre-market trading, trading at $248.0/share, with turnover of $367,800. The surge follows the company's fiscal Q2 earnings release that significantly exceeded market expectations.
Ross Stores reported Q2 EPS of $2.66, beating the consensus estimate of $1.94 by approximately 37% and representing a 70.5% year-over-year increase. Quarterly revenue reached $6.265 billion, surpassing the $6.18 billion estimate. The outperformance was driven by robust store traffic growth of 16.4% year-over-year and tariff-related refunds.
The company raised its fiscal 2026 full-year EPS guidance to $8.61-$8.77, well above the prior range of $7.50-$7.74 and the Wall Street consensus of $7.89. Ross also expanded its new store opening plan to 115 locations and repurchased 1.4 million shares for $319 million during the quarter. This marks the second consecutive quarter of substantial earnings beats and guidance raises, underscoring the resilience of the off-price retail model amid consumer trade-down trends.
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