Ross Dress for Less 8-K
PositiveEarningsGuidance raised
Customer traffic drove sales growth and IEEPA tariff refunds lifted earnings; Ross raised its outlook and store-opening plan.
Filed 2026-08-20 16:11 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY2026 results with raised second-half and FY2026 outlook. Sales and comparable store sales growth were driven primarily by customer traffic; results also included ≈$253M of IEEPA tariff refunds, which contributed ≈$0.60 per share. Ross raised its planned FY2026 store openings to 115.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Sales | $6.26B | $5.53B | 13% |
| Operating income | $1.10B | $638M | 73% |
| Net earnings (GAAP) | $851M | $508M | 68% |
| Diluted EPS | $2.66 | $1.56 | 71% |
| Comparable store sales | 10% | 2% | +800 bp |
- H1 sales were $12.3B vs $10.5B (+17%); comparable store sales rose 13%. Net earnings were $1.50B vs $987M (+52%), and diluted EPS was $4.69 vs $3.03 (+55%).
- Q2 operating margin increased 610 bp, including 405 bp from tariff refunds; excluding the refunds, it increased 205 bp, above the company’s planned 130–150 bp increase.
- H1 net cash from operating activities was $1.71B vs $1.08B. Calculated FCF (operating cash flow less capital expenditures) was $1.25B vs $669M. Q2 repurchases totaled $319M for 1.4M shares; diluted weighted-average shares fell 1.6% Y/Y to 319.45M. Cash was $4.29B; total debt at carrying value was $1.02B, down from $1.52B.
Guidance
Q3 and Q4 EPS projections assume second-half performance in line with the respective comparable-store-sales outlooks.
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Comparable store sales | Q3 FY2026 | 6%–7% increase | — | Raised |
| Diluted EPS | Q3 FY2026 | $1.75–$1.83 | — | — |
| Comparable store sales | Q4 FY2026 | 4%–5% increase | — | Raised |
| Diluted EPS | Q4 FY2026 | $2.17–$2.26 | — | — |
| Diluted EPS | FY2026 | $8.61–$8.77, including ≈$0.60 from tariff refunds | — | Raised |
| New store openings | FY2026 | 115 locations (≈90 Ross; 25 dd’s DISCOUNTS) | — | Raised |
Investor Takeaways
- Q3 comparable store sales and diluted EPS will show whether traffic-led momentum continues into the Fall season.
- FY2026 EPS includes a ≈$0.60 tariff-refund benefit; results excluding that benefit will help indicate underlying earnings performance.
- Track progress toward the expanded 115-store opening plan.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3