Q1 2026 Ross Stores Inc Earnings Call Transcript
Key Points
- Ross Stores Inc (ROST) reported a 21% increase in total sales and a 37% growth in earnings per share for the first quarter of 2026.
- Comparable store sales grew by a robust 17%, primarily driven by an increase in the number of transactions.
- The company successfully opened 13 new Ross and 4 new dd’s DISCOUNTS locations in the first quarter, with plans for 110 new stores in 2026.
- Ross Stores Inc (ROST) achieved a significant operating margin expansion of 120 basis points to 13.4%, exceeding expectations.
- The company repurchased 1.5 million shares during the quarter, demonstrating a commitment to returning value to shareholders.
- The company noted that some of the outsized comparable store sales growth could be attributed to higher tax refunds, which may not be sustainable.
- SG&A expenses rose by 25 basis points due to higher incentives, which could impact future profitability if not managed carefully.
- There are ongoing uncertainties related to tariff refunds, which have been excluded from forward guidance, potentially affecting future financial results.
- Elevated fuel prices are expected to pressure freight costs, both ocean and domestic, in the second quarter and the full year.
- The company is in the early stages of many initiatives, indicating that some growth strategies may take time to fully materialize.
Good afternoon, and welcome to the Ross Stores first-quarter 2026 earnings release conference call. (Operator Instructions)
Before we get started, on behalf of Ross Stores, I would like to note that the comments made on this call will contain forward-looking statements regarding expectations about future growth and financial results, including sales and earnings forecasts, new store openings, and other matters that are based on the company's current forecast of aspects of its future business. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations. Risk factors are included in today's press release and the company's fiscal 2025 Form 10-K and fiscal 2026 Form 8-Ks on file with the SEC.
And now I'd like to turn the call over to Jim Conroy, Chief Executive Officer.
Thank you, John, and good afternoon, everyone. Joining me on our call today are Michael Hartshorn,
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