Ross Stores Reports Strong Fourth Quarter and Record Fiscal 2025 Performance
Ross Stores, announced its financial results for the 13-week fourth quarter and the 52-week fiscal year that ended on January 31, 2026, highlighting a period of strong momentum, robust sales growth, and improved customer engagement across its store network. The company delivered significant gains during the holiday quarter and achieved record annual sales, reflecting the continued strength of its off-price retail model and disciplined execution of its merchandising and operational strategies. Ross Stores’ leadership emphasized that the company’s performance was driven by compelling product assortments, effective marketing initiatives, and consistent efforts to enhance the in-store shopping experience.
Strong Fourth Quarter Sales and Earnings Performance
Ross Stores delivered an impressive performance in the fourth quarter of fiscal 2025, with total sales rising 12% year over year to reach $6.6 billion compared with $5.9 billion during the same quarter in 2024. This strong growth was supported by a notable increase in comparable store sales, which rose 9% during the quarter, building upon a solid 3% comparable sales increase achieved in the prior year’s fourth quarter. The company’s ability to attract customers during the key holiday season reflected the strength of its merchandise offerings and the effectiveness of its marketing campaigns designed to engage shoppers and drive store traffic.
Profitability also exceeded expectations during the quarter. Operating margin reached 12.3%, surpassing the company’s previously projected range of 11.5% to 11.8%. The improved margin performance was largely attributed to the stronger-than-anticipated sales results, which helped leverage expenses and enhance overall operating efficiency. The company’s ability to generate higher margins during a period of strong sales growth highlights its disciplined approach to inventory management, merchandising, and cost control.
Net income for the fourth quarter totaled $646 million, compared with $587 million in the same period a year earlier. Earnings per share reached $2.00, significantly exceeding the company’s prior guidance of $1.77 to $1.85 per share. This result represented a notable increase from the $1.79 per share reported during the fourth quarter of the previous year. When excluding a $0.14 per share gain recorded in fiscal 2024 from the sale of a packaway facility, fourth quarter earnings per share grew by an impressive 21%, underscoring the underlying strength of the company’s operating performance.
CEO Commentary on Holiday Performance and Customer Engagement
Jim Conroy, Chief Executive Officer of Ross Stores, expressed satisfaction with the company’s strong fourth quarter results and noted that business momentum accelerated significantly as the year progressed. According to Conroy, the company’s performance during the holiday season exceeded expectations due to a combination of compelling merchandise assortments, improved customer engagement through marketing initiatives, and ongoing enhancements to the in-store shopping experience.
Conroy explained that Ross Stores focused heavily on delivering value-driven product offerings that resonated with customers seeking quality brands at discounted prices. The company also benefited from the rollout of new marketing campaigns designed to strengthen customer connections and increase brand awareness. Additionally, in-store initiatives aimed at improving the overall shopping environment helped create a more engaging and convenient experience for shoppers, which contributed to stronger sales performance.
These efforts collectively helped Ross Stores capitalize on increased consumer demand during the holiday season and reinforced the company’s position as a leading off-price retailer in the United States.
Fiscal 2025 Delivers Record Sales and Consistent Growth
For the full fiscal year ended January 31, 2026, Ross Stores achieved record sales of $22.8 billion, representing an 8% increase compared with $21.1 billion in fiscal 2024. The company also reported comparable store sales growth of 5% for the year, building on a 3% comparable sales gain recorded during the previous fiscal year.
This consistent growth in comparable store sales demonstrates the continued strength of Ross Stores’ business model and the ongoing appeal of its value-focused retail strategy. By offering branded apparel, accessories, and home goods at discounted prices, the company has been able to attract a broad range of cost-conscious consumers across different economic conditions.
Net income for fiscal 2025 totaled approximately $2.1 billion, remaining relatively consistent with the prior year. Earnings per share increased to $6.61, compared with $6.32 in fiscal 2024. When adjusting for certain factors, including the $0.14 per share gain recorded in fiscal 2024 from the sale of a packaway facility and the approximately $0.16 per share impact from tariff-related costs during fiscal 2025, the company’s earnings per share grew by 10% for the full year.
Conroy noted that fiscal 2025 began with some challenges due to macroeconomic uncertainties and the impact of tariffs, which affected costs and consumer sentiment during the first half of the year. Despite these headwinds, Ross Stores remained focused on executing its long-term strategy while maintaining disciplined operations. As the year progressed, underlying business trends improved steadily, supported by stronger merchandising initiatives, enhanced marketing programs, and improvements to the in-store shopping experience.
By the second half of the year, the company had built strong momentum that ultimately resulted in a powerful finish to fiscal 2025. This momentum positions Ross Stores favorably as it enters the next fiscal year.
Shareholder Returns and Capital Allocation Strategy
Ross Stores also continued to prioritize returning value to its shareholders through share repurchases and dividend payments. During the fourth quarter of fiscal 2025, the company repurchased approximately 1.5 million shares of its common stock at a total cost of $262 million.
Over the course of the full fiscal year, Ross Stores repurchased approximately 7.1 million shares for an aggregate purchase price of $1.05 billion. These repurchases completed the company’s previously announced two-year stock repurchase program as planned.
Looking ahead, the company’s Board of Directors has approved a new two-year stock repurchase authorization totaling $2.55 billion for fiscal 2026 and fiscal 2027. This new program represents a 21% increase compared with the $2.1 billion worth of shares repurchased during fiscal 2024 and fiscal 2025 combined.
In addition to the expanded repurchase program, the Board also approved a 10% increase in the company’s quarterly cash dividend. The new dividend amount has been set at $0.445 per share and will be payable on March 31, 2026, to stockholders of record as of March 13, 2026.
Conroy emphasized that these increases reflect Ross Stores’ continued commitment to returning excess cash to shareholders after meeting the capital needs required to support business growth and operational investments. The company’s strong balance sheet and consistent cash flow generation allow it to maintain this balanced capital allocation strategy.
Positive Start to Fiscal 2026 and Near-Term Outlook
Ross Stores has also shared an optimistic outlook for fiscal 2026 based on early performance trends and expectations for continued customer demand. According to Conroy, the company ended the fourth quarter of fiscal 2025 with strong business momentum and has seen an encouraging start to the Spring selling season.
For the first quarter of fiscal 2026, which covers the 13 weeks ending May 2, 2026, the company expects comparable store sales to increase between 7% and 8%. If sales perform within this projected range, earnings per share for the quarter are expected to fall between $1.60 and $1.67. This would represent an improvement compared with the $1.47 per share reported during the first quarter of fiscal 2025, which ended on May 3, 2025.
These projections suggest that Ross Stores expects its strong sales momentum to continue into the new fiscal year, supported by effective merchandising strategies and sustained consumer demand for value-oriented retail offerings.
Full-Year Fiscal 2026 Projections
For the full fiscal year ending January 30, 2027, Ross Stores is projecting comparable store sales growth in the range of 3% to 4%. This expected growth would build on the 5% comparable sales increase achieved during fiscal 2025.
Based on these assumptions, the company forecasts fiscal 2026 earnings per share to range between $7.02 and $7.36. This projection represents a notable increase compared with the $6.61 per share reported for fiscal 2025.
These expectations indicate that Ross Stores anticipates continued growth in both sales and profitability as it expands its market presence and strengthens its value proposition for customers.
Strategic Priorities and Outlook for Long-Term Growth
Reflecting on the achievements of fiscal 2025, Conroy expressed pride in the progress made across the organization. The company successfully advanced several key initiatives designed to drive revenue growth, improve operational efficiency, and enhance the overall customer experience.
Ross Stores continues to focus on delivering compelling value through high-quality merchandise offered at attractive prices. The company’s merchandising teams remain dedicated to sourcing a wide variety of branded apparel, accessories, and home goods that appeal to its diverse customer base. Meanwhile, investments in marketing and store operations are helping to strengthen customer engagement and improve the shopping experience.
Conroy also highlighted the role of Ross Stores’ associates in achieving the company’s success. The dedication and hard work of employees across the organization played a critical role in delivering the strong results reported for fiscal 2025.
Looking ahead, Ross Stores believes it is well positioned to capture additional market share within the off-price retail sector. With a healthy balance sheet, disciplined operational execution, and a clear strategic focus on providing value to customers, the company aims to deliver sustainable and profitable growth in the years ahead.
As fiscal 2026 begins, Ross Stores remains confident in its ability to build upon the strong momentum generated during the latter half of fiscal 2025. The company’s leadership expects that continued investments in merchandising, marketing, and customer experience will help drive long-term growth while reinforcing Ross Stores’ position as a leading destination for value-focused shoppers.
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