Ross Stores Inc. Reports Strong Fourth Quarter Earnings, Exceeding Expectations

Ross Stores experienced a 12% increase in total sales during the fourth quarter, totaling $6.6 billion, compared to $5.9 billion in the same period last year. Notably, comparable store sales rose by an impressive 9%, building on a solid 3% gain from the prior year.

The company’s operating margin stood at 12.3%, exceeding the planned range of 11.5% to 11.8%. This strong sales performance directly contributed to net income of $646 million, marking a rise from $587 million in the fourth quarter of 2024. Earnings per share (EPS) for the quarter reached $2.00, significantly above the guidance of $1.77 to $1.85.

For the fiscal year 2025, Ross Stores achieved record sales of $22.8 billion, representing an 8% increase from $21.1 billion in 2024. Comparable store sales growth was recorded at 5%, complemented by a consistent 3% gain in the previous year. Net income for the full year was $2.1 billion, consistent with last year, while EPS rose to $6.61, up from $6.32 in 2024.

Excluding a $0.14 per share gain from the sale of a packaway facility in 2024, EPS growth for the year was approximately 10%, despite facing challenges such as tariffs and consumer uncertainty during the first half of the year.

Jim Conroy, Chief Executive Officer of Ross Stores, expressed satisfaction with the company's performance, stating, "We are pleased to report that business momentum accelerated further in the fourth quarter, with both sales and earnings significantly surpassing our expectations." He highlighted the successful execution of new marketing campaigns and enhanced in-store initiatives that bolstered customer engagement and overall shopping experience.

Conroy acknowledged the challenges faced in the first half of the year due to a dynamic macroeconomic environment but emphasized the company’s strategic focus and disciplined management, which ultimately led to improved performance in the latter half.

During the fourth quarter, Ross Stores repurchased 1.5 million shares of common stock for $262 million, and a total of 7.1 million shares for $1.05 billion throughout fiscal 2025, completing the planned two-year stock repurchase program. The Board of Directors has approved a new $2.55 billion stock repurchase authorization for fiscal years 2026 and 2027, representing a 21% increase over the previous program. Additionally, a 10% increase in the quarterly cash dividend to $0.445 per share was announced, payable on March 31, 2026.

Conroy noted, "The increases to our stock repurchase and dividend programs reflect our continued commitment to return excess cash to our shareholders after funding growth and other capital needs of our business."

Looking ahead, Ross Stores projects continued growth for fiscal 2026. For the first quarter ending on May 2, 2026, comparable store sales are expected to increase by 7% to 8%, with EPS projected to be between $1.60 and $1.67. For the full fiscal year ending January 30, 2027, the company forecasts same-store sales growth of 3% to 4%, with EPS anticipated to be in the range of $7.02 to $7.36.

Conroy concluded, "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."

Ross Stores, Inc. has demonstrated robust financial results for the fourth quarter and full fiscal year 2025, with strong growth in sales and earnings exceeding guidance. The company's strategic focus on customer engagement and operational efficiency positions it well for continued success in the coming fiscal year. Investors and analysts alike will be keenly watching how the company navigates the evolving retail landscape in 2026 and beyond.