DUBLIN, California, August 23, 2026, 04:12 PDT — U.S. markets have closed.
- Shares of Ross Stores gained 4.4% on Friday after the company reported a 10% increase in comparable sales and raised its guidance.
- Operating margin rose by 205 basis points, excluding the impact of a $253 million tariff refund.
- The stock gained about $3.2 billion on Friday, though it ended the week down 2.6%.
Ross Stores, Inc. NASDAQ:ROST saw its market value increase by about $3.2 billion on Friday after reporting a 10% jump in comparable sales and issuing higher guidance for the second half.
The stronger sign for investors was beneath headline earnings. A tariff refund of $253 million contributed $0.60 to quarterly earnings per share, but the margin beat persisted even without this boost.
| Price reaction | Value | Change |
|---|---|---|
| Ended August 20 | $228.99 | -2.43% |
| Ended August 21 | $239.04 | +4.39% |
| Ended August 14 | $245.36 | — |
| Movement over the week | -$6.32 | -2.58% |
| Value gained on Friday | $3.2 billion | Preliminary |
Sales for the second quarter increased by 13% to $6.3 billion. Comparable sales climbed 10%, fueled by customer traffic, compared to 2% growth in the same period last year.
Net income climbed to $851 million, compared to $508 million previously. Earnings stood at $2.66 per share, factoring in the tariff benefit. Without the benefit, earnings were roughly $2.06 per share.
| Q2 earnings bridge | Reported | Ex-refund |
|---|---|---|
| Per-share earnings | $2.66 | Roughly $2.06 |
| Shift in operating margin | +610 bps | +205 bps |
| Margin target by company | — | Between +130 and +150 bps |
| Tariff impact | $253 million | Omitted |
| Portion of EPS reported | 22.6% | — |
The normalized margin gain surpassed management’s target range of 130 to 150 basis points. This is more significant than the refund, as it indicates improvements in merchandise, customer traffic, and store execution.
Chief Executive Jim Conroy said growth was driven by gains in new customers as well as greater engagement from the current customer base.
Management raised its full-year earnings guidance by $1.07 at the midpoint. The revised range continues to factor in the $0.60 refund benefit. Store openings rose to 115.
| 2026 forecast | Updated guidance | Previous guidance |
|---|---|---|
| Annual EPS | $8.61-$8.77 | $7.50-$7.74 |
| Q3 same-store sales | +6% to +7% | Company forecast lower |
| Q4 same-store sales | +4% to +5% | Company forecast lower |
| Q3 EPS | $1.75-$1.83 | No comparison available |
| Q4 EPS | $2.17-$2.26 | No comparison available |
| Planned new stores | 115 | 110 |
Shares responded with a modest uptick. After-hours trading saw the stock near $249, while Friday’s close settled at $239.04, leaving them 2.6% lower compared to the previous Friday.
After the report, analysts increased their targets. The consensus rating stays at buy, and the average target is close to $258. This represents roughly 8% potential upside from Friday’s closing price.
| Analyst / firm | Recommendation | Old target | New target |
|---|---|---|---|
| Truist | Buy | $290 | $310 |
| JPMorgan | Buy | $262 | $272 |
| Lorraine Hutchinson / BofA | Buy | $255 | $265 |
| Baird | Outperform | $250 | $270 |
| Aneesha Sherman / Bernstein | Market perform | $230 | $240 |
During the quarter, Ross bought back 1.4 million shares for $319 million. The average price paid for the repurchases was roughly $228, lower than the closing price on Friday.
Valuation and sustainability pose risks. The tariff refund is a one-time event, and inventory was accumulated in anticipation of quicker sales. Should traffic decline, that inventory may need to be discounted.
The upcoming week will show if $228.99 turns into a support level. If that holds, focus remains on the underlying margin increase of 205 basis points.
![US Stock Market Today 08/23/2026 [UPDATE: 08:13 EDT] [Nvidia and PCE Face a Bond-Stressed Market: Weekly Recap and Week Ahead]](https://ts2.tech/wp-content/uploads/2026/08/US-market-dashboard-2026-08-23-0810-480x384.jpg "US Stock Market Today 08/23/2026 [UPDATE: 08:13 EDT] [Nvidia and PCE Face a Bond-Stressed Market: Weekly Recap and Week Ahead]")
