Discount retail resilience stands out! Ross Stores (ROST.US) has raised its annual profit forecast twice, with same-store sales marking the longest growth streak in nearly five years.
Ross Stores reported Q2 revenue of $6.3 billion, a year-on-year increase of 13.9%, exceeding expectations by $140 million; earnings per share were $2.66, surpassing expectations by $0.71.
Zhitong Finance APP reports that the American discount retail giant Ross Stores (ROST.US) raised its annual profit forecast for the second time this year, indicating the company’s growth momentum remains strong. According to its financial report, Ross Stores’ revenue in the second quarter reached $6.3 billion, up 13.9% year-on-year, exceeding expectations by $140 million; earnings per share were $2.66, surpassing expectations by $0.71.
The company stated it now expects full-year earnings per share of $8.61 to $8.77, higher than the previous forecast of $7.50 to $7.74 and surpassing Wall Street expectations. The midpoint of the new guidance implies a 31% increase compared to the previous year, marking the strongest growth rate since 2022.
Due to performance exceeding forecasts, the company raised its full-year guidance and increased its planned number of new store openings in 2026 to 115. This includes 90 Ross Dress for Less locations and 25 dd's DISCOUNTS stores.
Although Ross Stores’ second-quarter earnings included about $0.60 per share from tariff refunds, same-store sales still grew by 10%. This marks the second consecutive quarter of double-digit same-store sales growth, a trend not seen in nearly five years.
Ross Stores did not provide a full-year same-store sales guidance range but expects third quarter growth of 6% to 7% and fourth quarter growth of 4% to 5%, both exceeding analyst estimates.
Ross Stores posts double-digit same-store sales growth for two consecutive months
CEO Jim Conroy said on the earnings call: “This quarter, we saw an increase in both new customers and returning former customers, and existing customers also visited our stores more frequently and spent more.” The company plans to open about five more new stores this year than previously expected.
Elsewhere, retailers’ reported results were mixed. Both Target and Walmart raised their annual outlooks, with Target showing signs of a recovery in sales growth. However, Walmart’s results reflected consumer pressure, as U.S. same-store sales excluding fuel missed forecasts due to shoppers spending less per visit.
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