Ross Stores Shares Jump After Q4 Earnings and Revenue Beat

Core Insights - Ross Stores, Inc. reported fourth-quarter results that exceeded Wall Street expectations, leading to a more than 7% increase in shares intra-day [1] - The company posted adjusted earnings per share of $2.00, surpassing analyst forecasts of $1.88, with revenue reaching $6.64 billion, beating the consensus estimate of $6.38 billion [1] - Sales increased by 12% year over year, supported by strong comparable store sales growth of 9% [1] Financial Performance - The operating margin for the fourth quarter was 12.3%, above the company's guidance range of 11.5% to 11.8%, primarily due to stronger-than-expected sales [2] - For fiscal 2025, Ross Stores reported record revenue of $22.8 billion, an 8% increase from $21.1 billion in the previous year, while comparable store sales rose by 5% [2] Future Outlook - The company expects first-quarter fiscal 2026 comparable store sales to increase between 7% and 8%, with earnings per share projected in a range of $1.60 to $1.67, compared to $1.47 in the same period last year [3] - For the full fiscal year 2026, Ross Stores forecasts comparable sales growth of 3% to 4% and earnings per share between $7.02 and $7.36, compared to $6.61 in fiscal 2025 [4] Shareholder Returns - The board approved a new two-year $2.55 billion share repurchase authorization for fiscal 2026 and 2027, representing a 21% increase compared to the previous program [5] - Directors also approved a 10% increase in the quarterly dividend to $0.445 per share, payable March 31, 2026 [5]