ROSS STORES, INC. Annual Report, Year Ended Jan 31, 2026

Ross Stores, Inc. (ROST) reported strong performance for the fiscal year ended January 31, 2026, with total sales reaching $22.75 billion, an 8% increase year-over-year. This growth was primarily driven by a 5% increase in comparable store sales, supported by a 3% rise in average transaction value (basket) and a 2% increase in traffic. The company's off-price model continues to resonate with value-conscious consumers, as evidenced by consistent growth across its two brands, Ross Dress for Less and dd's DISCOUNTS. Profitability remains robust, with operating income at $2.71 billion and net income at $2.15 billion, resulting in diluted earnings per share (EPS) of $6.61. While operating margin saw a slight decrease to 11.9% from 12.2% in the prior year, this was largely attributed to increased distribution and tariff-related costs. The company demonstrated a strong commitment to returning value to shareholders through consistent dividend payments and significant share repurchases, with a new $2.55 billion repurchase program announced. Ross Stores is strategically expanding its store footprint, planning to open approximately 110 new stores in fiscal year 2026, signaling continued confidence in its growth trajectory.