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ROSS STORES, INC. 8-K Report, Financial Results (Mar 3, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed March 3, 2026
Period End
March 3, 2026
Security
ROST
In the record · 2016–202610-K1110-Q338-K97

ROST filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 97 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jul ’20Jul ’20
  2. Leadership change8-K · Dec ’22Dec ’22
  3. Leadership change8-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 8-K filed March 3, 2026. Cited figures are marked; the original filing is the authoritative source.

Ross Stores (ROST) reported a strong fourth quarter of fiscal 2025 (ended January 31, 2026), with sales up 12% to $6.6 billiona and comparable store sales up a robust 9% on top of a 3% gain a year earlier.

Operating margin reached 12.3%, above the company's 11.5%-11.8% plan, and diluted EPS of $2.00b beat the $1.77-$1.85 guidance range. Excluding a $0.14 per share gain from a 2024 facility sale, Q4 EPS grew 21%. For the full year, record sales of $22.8 billion rose 8%, comparable store sales grew 5%, and diluted EPS rose to $6.61 from $6.32.

Excluding the prior-year facility gain and roughly $0.16c of tariff-related costs, full-year EPS growth was about 10%. Management described a weak first half, citing tariffs and consumer uncertainty, followed by steady improvement and a strong finish. Capital return was expanded.

The Board approved a new two-year, $2.55 billiond repurchase authorization for fiscal 2026-2027, a 21% increase over the $2.1 billion repurchased in 2024-2025, and raised the quarterly dividend 10% to $0.445 per share. The company repurchased $1.05 billion of stock in fiscal 2025 and generated $3.0 billion of operating cash flow, while year-end cash of $4.6 billion funded $700 million of debt repayment. Long-term debt fell to about $1.0 billion from $1.5 billion a year earlier.

For fiscal 2026, management guided first-quarter comparable store sales growth of 7% to 8%, with EPS of $1.60 to $1.67 versus $1.47 a year ago. For the full year, it projects comparable store sales growth of 3% to 4% and EPS of $7.02 to $7.36, versus $6.61 in fiscal 2025. Management cited an encouraging start to the spring season, but the release is forward-looking and carries standard risks, including tariffs, consumer spending, and supply chain disruption.

02—Key points

Key Highlights

  1. Q4 FY2025 diluted EPS of $2.00 beat guidance of $1.77-$1.85 and rose from $1.79 a year earlier; excluding a prior-year $0.14 gain, growth was 21%.
  2. Q4 comparable store sales rose 9% on a 3% prior-year gain, and total sales grew 12% to $6.6 billion.
  3. Q4 operating margin of 12.3% exceeded the 11.5%-11.8% plan, driven mainly by sales strength.
  4. Full-year FY2025 sales hit a record $22.8 billion (+8%), with comparable store sales up 5% and diluted EPS of $6.61 (+5% reported, ~10% adjusted for facility gain and tariff costs).
  5. New two-year $2.55 billion buyback authorization for FY2026-2027 (21% above the prior two years), and quarterly dividend raised 10% to $0.445 per share, payable March 31, 2026.
  6. FY2026 guidance: Q1 comparable store sales +7% to +8% with EPS of $1.60-$1.67; full-year comparable store sales +3% to +4% with EPS of $7.02-$7.36.
  7. Balance sheet strengthened: $4.6 billion cash, $700 million of debt repaid in FY2025, and long-term debt reduced to about $1.0 billion; operating cash flow was $3.0 billion.

03—Questions

Frequently Asked Questions

  1. Why did Ross beat its Q4 earnings guidance so significantly?

    The beat was driven primarily by sales. Comparable store sales rose 9%, well above expectations, which lifted operating margin to 12.3% versus the 11.5%-11.8% plan. Management credited stronger merchandise assortments, new marketing campaigns, and in-store initiatives during the holiday season. Diluted EPS of $2.00 came in above the $1.77-$1.85 guidance range.

  2. How much is Ross returning to shareholders going forward?

    The Board approved a new two-year, $2.55 billion share repurchase authorization covering fiscal 2026 and 2027, a 21% increase over the $2.1 billion repurchased in 2024-2025. The quarterly dividend rises 10% to $0.445 per share, payable March 31, 2026 to holders of record as of March 13, 2026. In fiscal 2025, the company repurchased $1.05 billion of stock and paid $528 million in dividends.

  3. What is Ross's outlook for fiscal 2026?

    For Q1 (ending May 2, 2026), comparable store sales are forecast to rise 7% to 8%, with EPS of $1.60 to $1.67 versus $1.47 a year earlier. For the full year (ending January 30, 2027), comparable store sales are projected to grow 3% to 4% against a 5% gain in 2025, with EPS of $7.02 to $7.36 versus $6.61 in fiscal 2025. These projections assume sales perform in line with management's forecast.

  4. What headwinds did Ross face in fiscal 2025?

    Management said the first half of fiscal 2025 was challenging because of tariffs and broader consumer uncertainty. Tariff-related costs reduced full-year EPS by approximately $0.16 per share. Business trends improved through the second half, building to a strong fourth quarter. The filing also flags ongoing risks, including tariff changes, consumer spending shifts, inflation, supply chain disruptions, and competitive pressures.

  5. Is Ross's balance sheet strong enough to support these capital returns?

    Yes, by the figures reported. Ross ended the year with $4.6 billion in cash and equivalents and generated $3.0 billion in operating cash flow, up from $2.4 billion. It repaid $700 million of debt during the year, reducing long-term debt to about $1.0 billion from $1.5 billion, while funding $819 million of capital expenditures, $1.05 billion of buybacks, and $528 million of dividends.

04—Continue

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