Ross Stores Raises Profit Forecast After Strong Q2 Results

Ross Stores reported strong second-quarter results on Thursday, August 20, 2026, with earnings and revenue that exceeded analyst expectations, prompting the off-price retailer to raise its annual profit forecast. The company’s shares surged in premarket trading on Friday, August 21, as investors reacted to the robust performance and improved outlook.

The Dublin, California-based company posted earnings per share of $2.66 for the quarter ended August 1, 2026, significantly beating the consensus estimate of $1.95. Revenue for the quarter came in at $6.26 billion, a 13.3% increase from the same period last year and above the $6.16 billion forecast. Comparable store sales, which measure growth at locations open for more than 14 months, rose 10%, driven by increased customer traffic. CEO Jim Conroy attributed the performance to "compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience." He noted that growth was supported by both an increase in new customers and higher engagement from existing customers.

The company’s net income for the quarter was $851 million, up from $508 million in the prior-year period. This figure...