The off-price retailer delivered full-year sales of $22.8bn, marking an 8% growth from the prior year’s $21.1bn.
During the fiscal, the retailer recorded comparable store sales growth of 5%, up from the 3% growth recorded in fiscal 2024.
Ross Stores chief executive officer Jim Conroy attributed the improved performance to stronger merchandising, enhanced marketing initiatives, and an upgraded shopping experience.
Operating income increased to $2.7bn versus $2.6bn a year earlier.
Earnings per share (EPS) for the year reached $6.61, surpassing both last year’s $6.32 and the company’s own guidance range of $6.38 to $6.46.
Conroy said: “For the full year, we delivered a solid performance. While the first half presented challenges amid a dynamic macroeconomic environment, including the impact of tariffs and broader consumer uncertainty, we remained focused on executing our strategy and managing the business with discipline.”
Ross Stores’ performance in fourth quarter FY25
In the fourth quarter, the retailer reported total sales of $6.6bn, up 12% from $5.9bn in the same period last year, driven by robust holiday season.
Comparable store sales surged by 9%, significantly outpacing expectations for a 3% to 4% increase.
Net income for the 13-week period ending 31 January 2026, was $646m, increasing from $587m a year earlier. Its EPS climbed to $2.00, well above guidance of $1.77 to $1.85 and up from $1.79 in the prior-year quarter.
Ross Stores’ operating margin also exceeded projections at 12.3%, compared with planned levels of 11.5% to 11.8%.
Conroy said: “We are pleased to report that business momentum accelerated further in the fourth quarter, with both sales and earnings significantly surpassing our expectations.
“Throughout the holiday season, we delivered compelling merchandise assortments to our stores, benefited from higher customer engagement through our new marketing campaigns, and executed in-store initiatives that enhanced the customer experience.”
Optimistic guidance for fiscal 2026
Looking ahead, Ross Stores projects continued growth into fiscal 2026. For the first quarter ending May 2, 2026, management expects comparable store sales to rise between 7% and 8%, citing both a solid fourth quarter and a strong start to the spring season as drivers of this outlook.
If these top-line trends hold, first-quarter EPS is forecasted in the range of $1.60 to $1.67, an improvement over last year’s $1.47 for the comparable period.
For the full fiscal year ending 30 January 2027, Ross Stores anticipates same-store sales growth of 3% to 4%, building on this year’s robust performance. Full-year EPS is projected between $7.02 and $7.36.
“As we move into 2026, we are encouraged by the strength of our business and confident in the strategic priorities we have set for the year. With a healthy balance sheet, disciplined execution, and a clear focus on delivering compelling value to our customers, we believe we are well-positioned to capture additional market share and drive sustainable, profitable growth in the year ahead and beyond," Conroy added.
