Ross Stores, Inc. Earnings Quote from James G. Conroy

Ross Stores, Inc. 2026 Q2: 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.