New York, May 21, 2026, 18:04 (EDT)
- Ross shares jumped 5.3% after hours as the company lifted its full-year outlook.
- Comparable-store sales jumped 17% in the first quarter, beating the company’s earlier guidance.
- TJX raised its outlook this week too, citing steady demand in off-price retail.
Ross Stores shares moved higher after the bell Thursday as the discount chain lifted its yearly sales and profit outlooks. The company said budget-conscious customers are still spending, even as household finances tighten.
The stock rose 5.3% to $228.70 at 5:57 p.m. Eastern, recovering after a 0.3% loss to $217.19 at the close. Extended trading kicks in after the main U.S. session ends.
Timing is in focus. Investors wanting clearer signals on the U.S. consumer after a choppy retail earnings stretch are watching off-price chains, as more shoppers chase discounts. Ross reported its update a day after TJX Cos, which owns T.J. Maxx and Marshalls, lifted its annual targets.
Ross reported first-quarter sales up 21% to $6.0 billion for the period ended May 2. Comparable-store sales were up 17%. Net income hit $650 million, up from $479 million last year. Earnings per share increased 37% to $2.02.
Profit per share topped the $1.73 estimate from analysts tracked by LSEG. Revenue came in at $6.01 billion, above the $5.64 billion that MarketBeat said was expected.
Chief Executive Jim Conroy said customer traffic drove results and that momentum held up for the quarter. The company cited marketing, merchandising, improved store execution, and tax refund spending.
Conroy told analysts on the earnings call that comparable sales growth mostly came from higher transaction volumes and what he called “healthy increases in customer count” among income groups, ethnicities and ages, even among younger buyers. MarketBeat
Ross is now looking for fiscal 2026 same-store sales to rise 6% to 7%. That’s higher than the 3% to 4% increase it gave before. The company also lifted its earnings outlook, now seeing $7.50 to $7.74 per share instead of $7.02 to $7.36.
Ross is targeting 6% to 7% comparable-store sales growth for the second quarter, with projected earnings at $1.85 to $1.93 a share. The outlook forces the company to show that its first-quarter surge was more than a one-off from tax refunds or a short-term rise in store traffic.
Margins improved, too. Operating margin increased to 13.4%, up from 12.2% a year ago. Management pointed to better merchandise margin, lower distribution costs, and lower domestic freight costs. Incentive costs went higher after the company beat on earnings.
TJX shares traded higher after the company raised its comparable-sales and profit outlook. Guggenheim Securities’ Simeon Siegel said TJX is seen as a place for “expensive clothing cheap,” something that helps when shoppers pull back. Reuters
Ross is still buying back its own shares. The retailer repurchased 1.5 million shares for $319 million last quarter and says it’s on pace to buy back $1.275 billion in stock this fiscal year. Plans also call for around 110 new stores during the year, with about 85 Ross stores and 25 new dd’s DISCOUNTS shops.
Ross still sees risks to the upside. The company flagged inflation, tariffs, trade policy changes, fuel costs, weather, supply-chain snags and changes in consumer demand as possible headwinds. On the earnings call, CFO William Sheehan said high fuel costs are set to weigh on freight expenses in Q2 and through the year.
Ross, headquartered in Dublin, California, is listed on both the S&P 500 and Nasdaq 100. Its investor website says the company had 1,917 Ross Dress for Less locations and 366 dd’s DISCOUNTS stores.
