Ross Stores closed fiscal 2025 with stronger than expected fourth quarter earnings, giving the off price retailer a solid end to the year and a confident start to 2026. Fourth quarter sales rose 12% to $6.6 billion, while comparable store sales jumped 9%, well ahead of the company’s own expectations.
The quarter also came in stronger on profitability. Diluted earnings per share reached $2.00, ahead of guidance of $1.77 to $1.85, while operating margin landed at 12.3%, above the planned range of 11.5% to 11.8%.
A Holiday Quarter That Carried More Momentum
The company’s performance suggests customer demand strengthened as the holiday season progressed. The fourth quarter built on a 3% comparable sales gain in the prior year, showing that the latest growth came on top of an already solid comparison.
Jim Conroy, Chief Executive Officer of Ross Stores, said, “We are pleased to report that business momentum accelerated further in the fourth quarter, with both sales and earnings significantly surpassing our expectations. Throughout the holiday season, we delivered compelling merchandise assortments to our stores, benefited from higher customer engagement through our new marketing campaigns, and executed in store initiatives that enhanced the customer experience.”
That combination of assortments, marketing, and in store execution helped Ross finish the year on firmer footing than it had earlier in 2025, when macro pressure and tariff related costs were still weighing more heavily on the business.
Full Year Sales Hit a Record
For the full year, sales reached a record $22.8 billion, up 8% from $21.1 billion. Comparable store sales increased 5%, while diluted earnings per share rose to $6.61 from $6.32.
The earnings picture looks stronger after adjusting for one time items. Excluding a $0.14 per share gain from the sale of a packaway facility in 2024 and an approximate $0.16 per share impact from tariff related costs in 2025, full year EPS growth was 10%.
Shareholder Returns Stay a Priority
Alongside the earnings report, Ross Stores announced bigger shareholder payouts. The board approved a new $2.55 billion two year stock repurchase authorization for fiscal 2026 and 2027, a 21% increase over the $2.1 billion repurchased across 2024 and 2025 combined.
The company also raised its quarterly cash dividend by 10% to $0.445 per share, payable on March 31, 2026 to stockholders of record on March 13, 2026. That move reinforces how much cash generation remains central to the company’s financial story.
2026 Starts on a Strong Note
The outlook for the new year is upbeat. For the first quarter ending May 2, 2026, comparable store sales are forecast to increase 7% to 8%, with earnings per share projected at $1.60 to $1.67, up from $1.47 a year earlier.
For the full fiscal year ending January 30, 2027, Ross Stores expects same store sales growth of 3% to 4% on top of the 5% gain in 2025, with EPS projected between $7.02 and $7.36.
Conroy said, “As we reflect on 2025, we are proud of the meaningful progress we made across the business, including advancing key initiatives to further drive topline growth, while improving our operational performance. These solid results are a testament to the dedication and hard work of our Associates. As we move into 2026, we are encouraged by the strength of our business and confident in the strategic priorities we have set for the year. With a healthy balance sheet, disciplined execution, and a clear focus on delivering compelling value to our customers, we believe we are well positioned to capture additional market share and drive sustainable, profitable growth in the year ahead and beyond.”
Why It Matters
For the off price sector, the results show that value driven retail is still drawing shoppers even in a pressured consumer environment. Ross Stores not only outperformed its own forecast but also used the moment to raise buybacks and dividends, a sign of confidence in the durability of its model.
