More from ROST Q2 2026

Ross Stores, Inc.

ROST2026 Q2Consumer

1mo

Customer flywheel: transactions driven by marketing, store, and assortment

Management said the Q2 10% comp was driven mostly by more transactions, tied to customer capture and increased shopping frequency from existing customers.
They described a flywheel in which marketing drives traffic, stores improve conversion through shopping experience, and merchandising/assortment convert buyers.
Management explained that they cannot fully attribute conversion mechanics because they lack traffic counters, limiting decomposition across the chain.
They said marketing and media mix tweaks are designed to capture a broad cadre of customers, including new and lapsed shoppers.
They cited store execution improvements like shorter queue lines, organized stores, and faster inventory recovery that support conversion.
Management repeatedly framed ongoing initiatives as being in early innings with runway to build on current momentum.

Ross Stores, Inc.

ROST2026 Q2Consumer

1mo

Financial Performance Summary

First six months of 2026: sales up 17% to $12.3 billion; comp up 13%; EPS was $4.69 versus $3.03.
Gross margin improved 25 bps, driven primarily by 405 bps of tariff refunds.
Inventory: consolidated inventories increased 18% at quarter end; packaway was 36% of total inventory versus 38% last year.
Merchandise margin increased 110 bps; distribution costs were lower by 100 bps.
Net income was $851 million versus $558 million in the prior-year quarter; EPS was $2.66 versus $1.56.
Operating margin increased 610 bps; excluding tariff refunds, operating margin increased 205 bps year over year.
Second quarter 2026 total sales increased 13% to $6.3 billion, while comparable store sales increased 10%.

Ross Stores, Inc.

ROST2026 Q2Consumer

1mo

The quarter was really solid, and we are thrilled by not only the underlying growth number, the 10% comp, but the quality of the comp it is really driven mostly by more transactions.

James G. Conroy

CEO, Ross Stores, Inc.

Context

In response to a question about top-line momentum and exit-rate strength for Q2, management explained what drove the 10% comp. Management emphasized that the 10% comparable store sales growth was driven mostly by increases in the number of transactions. They tied this to customer capture, including both new customers and regaining lapsed customers, along with existing customers shopping more frequently and spending more. They also linked the momentum to month-to-month performance, including July and continued encouragement into August.

More from ROST Q2 2026

Ross Stores, Inc.

ROST2026 Q2Consumer

1mo

Customer flywheel: transactions driven by marketing, store, and assortment

Management said the Q2 10% comp was driven mostly by more transactions, tied to customer capture and increased shopping frequency from existing customers.
They described a flywheel in which marketing drives traffic, stores improve conversion through shopping experience, and merchandising/assortment convert buyers.
Management explained that they cannot fully attribute conversion mechanics because they lack traffic counters, limiting decomposition across the chain.
They said marketing and media mix tweaks are designed to capture a broad cadre of customers, including new and lapsed shoppers.
They cited store execution improvements like shorter queue lines, organized stores, and faster inventory recovery that support conversion.
Management repeatedly framed ongoing initiatives as being in early innings with runway to build on current momentum.

Ross Stores, Inc.

ROST2026 Q2Consumer

1mo

Financial Performance Summary

First six months of 2026: sales up 17% to $12.3 billion; comp up 13%; EPS was $4.69 versus $3.03.
Gross margin improved 25 bps, driven primarily by 405 bps of tariff refunds.
Inventory: consolidated inventories increased 18% at quarter end; packaway was 36% of total inventory versus 38% last year.
Merchandise margin increased 110 bps; distribution costs were lower by 100 bps.
Net income was $851 million versus $558 million in the prior-year quarter; EPS was $2.66 versus $1.56.
Operating margin increased 610 bps; excluding tariff refunds, operating margin increased 205 bps year over year.
Second quarter 2026 total sales increased 13% to $6.3 billion, while comparable store sales increased 10%.

Ross Stores, Inc.

ROST2026 Q2Consumer

1mo

The quarter was really solid, and we are thrilled by not only the underlying growth number, the 10% comp, but the quality of the comp it is really driven mostly by more transactions.

James G. Conroy

CEO, Ross Stores, Inc.

Context

Ross Stores, Inc.: Tariff refunds materially boosted Q2 gross margin and operating margin

More from ROST Q2 2026

Ross Stores, Inc. 2026 Q2: Customer flywheel: transactions driven by marketing, store, and assortment

Ross Stores, Inc. 2026 Q2: Financial Performance summary

More from ROST Q2 2026

More from ROST Q2 2026

Ross Stores, Inc. 2026 Q2: Customer flywheel: transactions driven by marketing, store, and assortment

Ross Stores, Inc. 2026 Q2: Financial Performance summary