01—Abstract
Summary
Summary of the 10-K filed March 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Ross Stores, Inc. (ROST) reported strong performance for the fiscal year ended January 31, 2026, with total sales reaching $22.75 billiona, 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 billionb 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 billionc 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.
02—Key points
Key Highlights
- Total sales grew 8% to $22.75 billion in fiscal year 2025.
- Comparable store sales increased by 5%, driven by a 3% increase in average transaction value and a 2% increase in traffic.
- Net income rose to $2.15 billion, with diluted EPS reaching $6.61.
- The company operated 2,267 stores (1,904 Ross, 363 dd's DISCOUNTS) as of January 31, 2026, with plans to open approximately 110 new stores in fiscal year 2026.
- Operating income margin was 11.9%, a slight decrease from 12.2% in the prior year, influenced by increased distribution and tariff costs.
- The company declared a quarterly cash dividend of $0.4450 per share and announced a new $2.55 billion stock repurchase program.
- Investments in information systems, supply chain, and store improvements are ongoing to support future growth and efficiency.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Ross Stores, Inc. kept $0.09.
- Revenue$22.75B100.0%
- Cost of revenue−$16.45B72.3%
- Gross profit$6.30B27.7%
- Operating costs−$3.60B15.8%
- Operating income$2.71B11.9%
- Interest, other & tax−$562.3M2.5%
- Net income$2.15B9.4%
Where FY2026 revenue went
$22.75B- Cost of revenue: $16.45B, 72% of revenue
- SG&A: $3.60B, 16% of revenue
- Net income: $2.15B, 9.4% of revenue
- Interest, other & tax: $562.3M, 2.5% of revenue
Kept 9.4% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 31, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $22.75B$21.13B | +7.7% |
| Cost of Revenue | $16.45B$15.26B | +7.8% |
| Gross Profit | $6.30B$5.87B | +7.4% |
| SG&A Expenses | $3.60B$3.28B | +9.5% |
| Operating Income | $2.71B$2.59B | +4.7% |
| Net Income | $2.15B$2.09B | +2.6% |
| EPS (Basic) | $6.66$6.36 | +4.7% |
| EPS (Diluted) | $6.61$6.32 | +4.6% |
| Shares Outstanding (Basic) | 322.22M328.59M | −1.9% |
| Shares Outstanding (Diluted) | 324.42M330.98M | −2.0% |
05—Questions
Frequently Asked Questions
What is Ross Stores' primary business strategy and how is it performing?
Ross Stores operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands. Their strategy focuses on offering first-quality, in-season, brand-name merchandise at significant discounts to department and specialty store prices. This value-driven approach continues to be successful, as evidenced by an 8% increase in total sales and a 5% increase in comparable store sales for the fiscal year ended January 31, 2026.
How did Ross Stores perform financially in fiscal year 2025?
In fiscal year 2025, Ross Stores reported total sales of $22.75 billion, an 8% increase from the prior year. Net income was $2.15 billion, leading to diluted earnings per share of $6.61. While operating income margin slightly decreased to 11.9% from 12.2%, this was due to increased distribution and tariff-related costs. The company maintained strong cash flow from operations ($3.03 billion) and continued to return capital to shareholders through dividends and share repurchases.
What are the company's growth plans, and what are the key risks identified?
Ross Stores plans to expand its physical footprint by opening approximately 110 new stores in fiscal year 2026, including both Ross Dress for Less and dd's DISCOUNTS locations. Key risks identified include macroeconomic factors like inflation and tariffs, intense retail competition (including online retailers), potential disruptions in the supply chain, challenges in attracting and retaining talent, and cybersecurity threats. The company is actively managing these risks through its business strategies and operational controls.
How is the company managing its inventory and costs?
The company's off-price model relies on opportunistic purchasing and efficient inventory management. They strategically purchase merchandise throughout and at the end of seasons to leverage overruns and canceled orders. While cost of goods sold increased year-over-year primarily due to higher sales volume, the company is working to manage distribution costs, merchandise margin, and other operating expenses. They are also investing in information systems and supply chain improvements to enhance efficiency and support growth.
06—Continue