Ross Stores posts record FY25 sales, projects continued growth in 2026

Core Insights - The off-price retailer reported full-year sales of $22.8 billion, an 8% increase from $21.1 billion in the previous year [1] - Comparable store sales grew by 5%, up from 3% in fiscal 2024 [1] - Operating income rose to $2.7 billion from $2.6 billion year-over-year [1] Financial Performance - Earnings per share (EPS) for the year reached $6.61, exceeding last year's $6.32 and the company's guidance of $6.38 to $6.46 [2] - In the fourth quarter, total sales were $6.6 billion, a 12% increase from $5.9 billion in the same period last year [2] - Comparable store sales surged by 9%, significantly above expectations of 3% to 4% [3] - Net income for the 13-week period ending January 31, 2026, was $646 million, up from $587 million a year earlier [3] - EPS for the fourth quarter climbed to $2.00, surpassing guidance of $1.77 to $1.85 and up from $1.79 in the prior-year quarter [3] - Operating margin exceeded projections at 12.3%, compared to planned levels of 11.5% to 11.8% [3] Strategic Initiatives - The improved performance was attributed to stronger merchandising, enhanced marketing initiatives, and an upgraded shopping experience [1] - The company experienced increased customer engagement through new marketing campaigns and in-store initiatives during the holiday season [4] Future Outlook - For the first quarter ending May 2, 2026, management expects comparable store sales to rise between 7% and 8% [4] - First-quarter EPS is forecasted in the range of $1.60 to $1.67, an improvement over last year's $1.47 [5] - For the full fiscal year ending January 30, 2027, same-store sales growth is anticipated at 3% to 4%, with full-year EPS projected between $7.02 and $7.36 [5]