Ross Stores, Inc. Q2 FY26 Results — Earnings Call Analysis
Published 29 May 2026 | Specialty Retail | Market Cap: ₹73.2K Cr
- Fiscal 2026 comparable store sales growth forecasted at 6% to 7%, building on a 5% gain in 2025. - Fiscal 2026 EPS guidance raised to $7.50 - $7.74, up 13% to 17% from $6.61 in prior year. - Comparable store sales projected to grow 6%-7% for full-year 2026. - Strong first quarter results with 37% EPS growth and 21% sales growth. - Long-term EPS growth target remains double-digit fueled by: - 5% unit growth, - 60%-70% productivity, - 3%-4% comp sales growth, - 2%-3% from share repurchases. - Operating margin expected to improve from 12.2% (Q1 last year) to 13.4% in Q1 2026. - Operating margin for Q2 2026 projected at 12.8%-13.0% vs.
From Ross Stores, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Price
₹227.2
Market Cap
₹73.2K Cr
P/E Ratio
32.8
Revenue Rank
Margin Rank
How does Ross Stores, Inc. rank in Specialty Retail?
Compare Ross Stores, Inc. against every Specialty Retail company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 3- →Fiscal 2026 comparable store sales growth forecasted at 6% to 7%, building on a 5% gain in 2025.
- →Full-year earnings per share projected between $7.50 to $7.74, a 13% to 17% increase over prior year.
- →Long-term modeling targets about 5% unit growth annually.
- →New store expansion includes 110 openings planned, maintaining ~5% unit growth, with a focus on Northeast expansion.
- →Customer count showing double-digit growth on a comp store basis, with increasing transactions driving comps.
- →Early marketing and merchandising initiatives expected to further increase customer acquisition and comp store sales.
- →Management remains confident in continuing solid comps and growth momentum beyond current year.
📈 Profitability & Margins
Rank 3- →Fiscal 2026 EPS guidance raised to $7.50 - $7.74, up 13% to 17% from $6.61 in prior year.
- →Comparable store sales projected to grow 6%-7% for full-year 2026.
- →Strong first quarter results with 37% EPS growth and 21% sales growth.
- →Long-term EPS growth target remains double-digit fueled by:
- → - 5% unit growth,
- → - 60%-70% productivity,
- → - 3%-4% comp sales growth,
- → - 2%-3% from share repurchases.
- →Operating margin expected to improve from 12.2% (Q1 last year) to 13.4% in Q1 2026.
- →Operating margin for Q2 2026 projected at 12.8%-13.0% vs. 11.5% prior year.
- →Potential for outsized EBIT growth if comp sales exceed 3%-4%.
- →Capital expenditures anticipated around $1.1 billion for 2026, up from $819 million last year.
🏗️ Capital Expenditure Plans
Yes- →Total estimated capital expenditure (CapEx) for the year is about $1.1 billion, up from $819 million last year (Page 11).
- →CapEx is not heavily skewed by quarter; spending is fairly consistent throughout the year (Page 11).
- →Focus on store refresh initiatives paused temporarily after updating half of stores last year to measure sales impact and plan next steps (Page 12).
- →Exploration of potential new store prototypes and possible changes in visual merchandising and store labor models underway (Pages 11-12).
- →New store growth targets about 5% unit growth long-term, with successful expansion into Northeast markets like New York (Pages 7, 10).
- →Real estate department actively writing leases for Northeast expansion in 2027 and beyond (Page 10).
- →Capital investments also include marketing, merchandising, and operational improvements to support growth and transformation (Pages 6-8).
💰 Fundraising & Capital Structure
No information- →There is no mention of any current or planned new fundraising through debt or equity in the provided transcript.
- →The company is focusing on share repurchase, having repurchased 1.5 million shares for $319 million recently and remains on track to buy back $1.275 billion in stock during 2026.
- →The company discussed capital expenditures of about $1.1 billion for 2026, up from $819 million last year, but no indications of raising funds via debt or equity to support that were noted.
- →Overall, the discussion centers on operational growth, marketing, store expansion, and share repurchase, with no explicit plans for new fundraising activities through debt or equity.
📋 Order Book & Pipeline
No information- →The company is on track to repurchase a total of $1.275 billion in stock during 2026, unchanged from prior plans.
- →They have invested $319 million so far in share repurchases under a new 2-year, $2.55 billion authorization approved in March 2026.
- →New store growth continues, with 110 openings expected this year and a 5% unit growth target over the longer term.
- →For the second quarter, 47 new stores are planned: 35 Ross stores and 12 dd’s DISCOUNTS.
- →The Northeast expansion is progressing with 12 stores in New York by end of 2025 and 2 more openings in Q1 2026, exceeding underwriting expectations.
- →Capital expenditures are planned at about $1.1 billion for 2026, up from $819 million last year.
- →The company is actively pursuing new vendors and opportunistic goods, indicating an expanding merchandise pipeline.
Key Metrics
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Margin
Capex
Fundraise
Order Book
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Frequently Asked Questions
What were Ross Stores, Inc. Q2 FY26 results?
- Fiscal 2026 comparable store sales growth forecasted at 6% to 7%, building on a 5% gain in 2025. - Fiscal 2026 EPS guidance raised to $7.50 - $7.74, up 13% to 17% from $6.61 in prior year. - Comparable store sales projected to grow 6%-7% for full-year 2026. - Strong first quarter results with 37% EPS growth and 21% sales growth. - Long-term EPS growth target remains double-digit fueled by: - 5% unit growth, - 60%-70% productivity, - 3%-4% comp sales growth, - 2%-3% from share repurchases. - Operating margin expected to improve from 12.2% (Q1 last year) to 13.4% in Q1 2026. - Operating margin for Q2 2026 projected at 12.8%-13.0% vs.
What is Ross Stores, Inc. share price analysis?
Ross Stores, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 32.8 with a market cap of $73,192. Investors should review the full earnings analysis for detailed insights.
Is Ross Stores, Inc. planning capital expenditure?
- Total estimated capital expenditure (CapEx) for the year is about $1.1 billion, up from $819 million last year (Page 11).
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.