Ross Stores, Inc. (NASDAQ: ROST) reported diluted earnings per share of $2.00 for the 13-week fourth quarter ended January 31, 2026, surpassing the company's prior guidance range of $1.77 to $1.85. The Dublin, California-based off-price retailer also disclosed a new two-year $2.55 billion share repurchase authorization and a 10% increase in its quarterly cash dividend, to $0.445 per share, payable March 31, 2026.
The results come as off-price retail broadly has drawn increased consumer traffic amid persistent inflation and uncertainty over U.S. trade policy. The company operated 2,267 stores across its Ross Dress for Less and dd's DISCOUNTS banners as of January 31, 2026, competing in the off-price segment against TJX Companies and Burlington Stores.
#Q4 and Full-Year Results
Fourth quarter net sales reached $6.6 billion, up 12% from $5.9 billion in the year-prior period. Comparable store sales rose 9% for the quarter, compared with a 3% gain in the same period a year earlier. Net income for the quarter was $646 million, versus $587 million in the prior-year quarter. The company noted that excluding a $0.14 per share gain from a packaway facility sale recorded in fiscal 2024, fourth quarter earnings per share growth was approximately 21% year over year.
For the full fiscal year 2025, total sales rose 8% to $22.8 billion from $21.1 billion in fiscal 2024. Comparable store sales increased 5% for the year. Full-year diluted earnings per share were $6.61, compared with $6.32 in the prior year. The company stated that adjusting for the facility sale gain in 2024 and approximately $0.16 per share in tariff-related costs incurred in fiscal 2025, earnings per share growth for the full year was approximately 10%.
#Capital Return Programs
Ross's board approved a new two-year stock repurchase authorization of $2.55 billion covering fiscal years 2026 and 2027, representing a 21% increase over the $2.1 billion repurchased during the prior two-year program. During fiscal 2025, the company repurchased 7.1 million shares for $1.05 billion, completing that program. The newly authorized quarterly dividend of $0.445 per share is payable to stockholders of record as of March 13, 2026.
CEO Jim Conroy attributed the fourth quarter performance to merchandise assortment execution and marketing initiatives, while noting that tariffs and macroeconomic uncertainty posed challenges during the first half of the year.
#Fiscal 2026 Guidance
For the 13 weeks ending May 2, 2026, the company projected comparable store sales growth of 7% to 8%, with diluted earnings per share of $1.60 to $1.67, compared to $1.47 in the first quarter of fiscal 2025. For the full fiscal year ending January 30, 2027, Ross projected comparable store sales growth of 3% to 4% and earnings per share of $7.02 to $7.36, compared to $6.61 in fiscal 2025. Management stated on its March 3 earnings call that the Spring season had started ahead of internal targets, while cautioning that the period was still in its early weeks.
#Industry and Risk Context
The off-price retail segment has drawn consumers across income levels as shoppers seek value amid elevated prices, though the sector faces competition from fast-fashion chains, digital marketplaces, and traditional discount retailers. Ross's guidance and projections carry execution risks tied to tariff policy, consumer spending patterns, supply chain conditions, and broader macroeconomic uncertainty. The company's own disclosures note that actual results could differ materially from forward-looking statements due to these and other factors detailed in its SEC filings, including its Form 10-K on file with the Commission.