Ross Stores Exceeds Expectations in Q4 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Should l Buy ROST?
Source: seekingalpha
- Significant Sales Growth: Ross Stores reported a 9% increase in comparable store sales for Q4, significantly exceeding the expected 4.5%, driving total sales to $6.6 billion, a 12% year-over-year increase, and surpassing market estimates by $200 million, indicating strong market demand and effective marketing strategies.
- Profitability Improvement: The company achieved a net profit of $646 million in Q4, translating to earnings per share of $2.00, which is a 12% increase from the same quarter last year and $0.10 above expectations, reflecting successful cost control and operational efficiency.
- Operating Margin Exceeds Expectations: Ross Stores reported an operating margin of 12.3%, surpassing the company's forecast of 11.5%-11.8% and exceeding the consensus estimate by 30 basis points, indicating ongoing improvements in profitability.
- Optimistic Future Outlook: The company anticipates a 7% to 8% increase in comparable store sales for Q1, higher than the expected 3.71%, and projects earnings per share between $1.60 and $1.67, demonstrating confidence in future performance, with shares rising over 5% in after-hours trading.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ROST?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ROST
Wall Street analysts forecast ROST stock price to fall
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 202.300
Low
142.00
Averages
198.93
High
224.00
Current: 202.300
Low
142.00
Averages
198.93
High
224.00
About ROST
Ross Stores, Inc. is engaged in operating two brands of off-price retail apparel and home fashion stores-Ross Dress for Less (Ross) and dds DISCOUNTS. Ross is the off-price apparel and home fashion chain in the United States, with approximately 1,831 locations in 43 states, the District of Columbia, and Guam. Ross offers in-season, name brand and designer apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 60% off department and specialty store regular prices every day. Ross target customers are primarily from middle-income households. It also operates approximately 355 dds DISCOUNTS stores in 22 states. dds DISCOUNTS features more moderately-priced in- season, name brand apparel, accessories, footwear, and home fashions for the entire family at savings of 20% to 70% off moderate department and discount store regular prices every day. It operates a total of approximately 2,186 stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ross Stores Projects Strong Earnings Growth for Fiscal 2026
- Earnings Forecast: Ross Stores anticipates earnings per share for fiscal 2026 to range between $7.02 and $7.36, significantly up from $6.61 in fiscal 2025, indicating a robust growth trajectory that boosts investor confidence.
- Share Buyback Program: The Board of Directors has approved a $2.55 billion share buyback program for fiscal years 2026 and 2027, representing a 21% increase from the $2.1 billion repurchase completed in 2024 and 2025, showcasing the company's strong belief in its future performance.
- Q4 Performance Exceeds Expectations: The company reported a 12% increase in total sales for Q4 to $6.6 billion, surpassing the expected $6.37 billion, with earnings per share hitting $2, well above the analyst estimate of $1.9, highlighting its strong market position.
- Market Sentiment Shift: On Stocktwits, retail sentiment around ROST shifted from 'bullish' to 'extremely bullish' in the past 24 hours, with message volume rising from 'normal' to 'extremely high', reflecting heightened investor optimism regarding the company's growth prospects.
See More
Moderna Settles Covid Vaccine Patent Dispute for $2.25 Billion
- Moderna Settlement: Moderna has agreed to pay up to $2.25 billion to settle a patent dispute with Biopharma Corporation and Genevant Sciences GmbH over its Covid vaccine, which is expected to mitigate legal risks and stabilize the company's market performance moving forward.
- Ross Stores Earnings Beat: Ross Stores reported fourth-quarter earnings of $2.00 per share, surpassing analysts' expectations of $1.90, with sales rising 12.2% year-over-year to $6.64 billion, demonstrating the company's ability to maintain strong sales growth amid economic uncertainty.
- CrowdStrike Strong Guidance: CrowdStrike anticipates earnings between $1.06 and $1.07 per share and revenue of $1.36 to $1.364 billion for the first quarter, both exceeding analyst expectations, indicating the company's ongoing growth potential in the cybersecurity sector.
- Box Strong Performance: Box reported fourth-quarter earnings of 49 cents per share, exceeding the 34 cents expected by analysts, with revenue of $306 million, showcasing the company's competitiveness in the content management market and confidence in future growth.
See More
S&P 500 Futures Hold Steady in Pre-Market Session; Moderna and SSR Mining Take the Lead
- Market Opening: U.S. stock markets are set to open in two hours.
- Moderna Inc. Performance: Moderna Inc. (MRNA) saw an 11.0% increase in pre-market trading.
- SSR Mining Inc. Performance: SSR Mining Inc. (SSRM) experienced a 9.2% rise in pre-market trading.
- Overall Market Sentiment: The pre-market gains indicate positive sentiment among investors for these companies.
See More
Movers: Moderna, CrowdStrike, GitLab, Coinbase, Strategy, Broadcom, and Others
- Stock Market Movement: Stock futures were showing slight increases on Wednesday.
- Investor Sentiment: Investors are assessing the potential for the U.S.-Iran conflict to escalate into a prolonged war.
See More
U.S. Stock Futures Rise Slightly as Investors Await ADP Employment Data
- Market Volatility: U.S. stock futures ticked higher on Wednesday, indicating a slight recovery in investor sentiment following a volatile session on Tuesday, although overall market uncertainty remains.
- Focus on ADP Report: Investors are keenly awaiting the ADP private payroll report set to be released on Wednesday, which is expected to significantly influence market sentiment amid the current economic recovery context.
- Bond Yield Trends: The 10-year Treasury bond yield stands at 4.08%, while the two-year bond yield is at 3.53%, reflecting market expectations regarding interest rate policies, particularly the Fed's potential decision to keep rates unchanged.
- Global Market Impact: Asian markets experienced their steepest losses in nearly a year, with South Korea's Kospi plunging 12% in a single day, which may trigger a ripple effect on global market sentiment and impact investor risk appetite.
See More
Stock Futures Decline Amid Middle East Tensions and Rising Oil Prices
- Market Turmoil: Stock futures continued to decline on Wednesday morning as investors assessed the escalating conflict in the Middle East, anticipated important economic data, and confronted rising oil prices that heighten inflation risks, reflecting market sensitivity to uncertainty.
- Strong Performance by Ross Stores: Ross Stores (ROST) shares rose 6% after reporting strong Q4 results and issuing upbeat guidance, with comparable sales growth expected at 7% to 8% for Q1, significantly above the 3.7% consensus, and a 10% dividend hike, showcasing the company's success during the holiday sales period.
- Moderna's Patent Settlement: Moderna (MRNA) shares increased by 5% after reaching a $950 million patent litigation settlement with Arbutus Biopharma and Genevant Sciences, eliminating future royalty obligations and projecting cash and equivalents of $4.5 billion to $5 billion by year-end, enhancing its market position in infectious diseases.
- Horizon Technology's Financial Setback: Horizon Technology Finance (HRZN) shares fell 10% after reporting net investment income and total investment income below expectations, leading to a decline in net asset value per share, with management noting that reduced prepayment activity negatively impacted results.
See More
Ross Stores Projects Strong Earnings Growth for Fiscal 2026
- Earnings Forecast: Ross Stores anticipates earnings per share for fiscal 2026 to range between $7.02 and $7.36, significantly up from $6.61 in fiscal 2025, indicating a robust growth trajectory that boosts investor confidence.
- Share Buyback Program: The Board of Directors has approved a $2.55 billion share buyback program for fiscal years 2026 and 2027, representing a 21% increase from the $2.1 billion repurchase completed in 2024 and 2025, showcasing the company's strong belief in its future performance.
- Q4 Performance Exceeds Expectations: The company reported a 12% increase in total sales for Q4 to $6.6 billion, surpassing the expected $6.37 billion, with earnings per share hitting $2, well above the analyst estimate of $1.9, highlighting its strong market position.
- Market Sentiment Shift: On Stocktwits, retail sentiment around ROST shifted from 'bullish' to 'extremely bullish' in the past 24 hours, with message volume rising from 'normal' to 'extremely high', reflecting heightened investor optimism regarding the company's growth prospects.
See More
Moderna Settles Covid Vaccine Patent Dispute for $2.25 Billion
- Moderna Settlement: Moderna has agreed to pay up to $2.25 billion to settle a patent dispute with Biopharma Corporation and Genevant Sciences GmbH over its Covid vaccine, which is expected to mitigate legal risks and stabilize the company's market performance moving forward.
- Ross Stores Earnings Beat: Ross Stores reported fourth-quarter earnings of $2.00 per share, surpassing analysts' expectations of $1.90, with sales rising 12.2% year-over-year to $6.64 billion, demonstrating the company's ability to maintain strong sales growth amid economic uncertainty.
- CrowdStrike Strong Guidance: CrowdStrike anticipates earnings between $1.06 and $1.07 per share and revenue of $1.36 to $1.364 billion for the first quarter, both exceeding analyst expectations, indicating the company's ongoing growth potential in the cybersecurity sector.
- Box Strong Performance: Box reported fourth-quarter earnings of 49 cents per share, exceeding the 34 cents expected by analysts, with revenue of $306 million, showcasing the company's competitiveness in the content management market and confidence in future growth.
See More
S&P 500 Futures Hold Steady in Pre-Market Session; Moderna and SSR Mining Take the Lead
- Market Opening: U.S. stock markets are set to open in two hours.
- Moderna Inc. Performance: Moderna Inc. (MRNA) saw an 11.0% increase in pre-market trading.
- SSR Mining Inc. Performance: SSR Mining Inc. (SSRM) experienced a 9.2% rise in pre-market trading.
- Overall Market Sentiment: The pre-market gains indicate positive sentiment among investors for these companies.
See More
Movers: Moderna, CrowdStrike, GitLab, Coinbase, Strategy, Broadcom, and Others
- Stock Market Movement: Stock futures were showing slight increases on Wednesday.
- Investor Sentiment: Investors are assessing the potential for the U.S.-Iran conflict to escalate into a prolonged war.
See More
U.S. Stock Futures Rise Slightly as Investors Await ADP Employment Data
- Market Volatility: U.S. stock futures ticked higher on Wednesday, indicating a slight recovery in investor sentiment following a volatile session on Tuesday, although overall market uncertainty remains.
- Focus on ADP Report: Investors are keenly awaiting the ADP private payroll report set to be released on Wednesday, which is expected to significantly influence market sentiment amid the current economic recovery context.
- Bond Yield Trends: The 10-year Treasury bond yield stands at 4.08%, while the two-year bond yield is at 3.53%, reflecting market expectations regarding interest rate policies, particularly the Fed's potential decision to keep rates unchanged.
- Global Market Impact: Asian markets experienced their steepest losses in nearly a year, with South Korea's Kospi plunging 12% in a single day, which may trigger a ripple effect on global market sentiment and impact investor risk appetite.
See More
Stock Futures Decline Amid Middle East Tensions and Rising Oil Prices
- Market Turmoil: Stock futures continued to decline on Wednesday morning as investors assessed the escalating conflict in the Middle East, anticipated important economic data, and confronted rising oil prices that heighten inflation risks, reflecting market sensitivity to uncertainty.
- Strong Performance by Ross Stores: Ross Stores (ROST) shares rose 6% after reporting strong Q4 results and issuing upbeat guidance, with comparable sales growth expected at 7% to 8% for Q1, significantly above the 3.7% consensus, and a 10% dividend hike, showcasing the company's success during the holiday sales period.
- Moderna's Patent Settlement: Moderna (MRNA) shares increased by 5% after reaching a $950 million patent litigation settlement with Arbutus Biopharma and Genevant Sciences, eliminating future royalty obligations and projecting cash and equivalents of $4.5 billion to $5 billion by year-end, enhancing its market position in infectious diseases.
- Horizon Technology's Financial Setback: Horizon Technology Finance (HRZN) shares fell 10% after reporting net investment income and total investment income below expectations, leading to a decline in net asset value per share, with management noting that reduced prepayment activity negatively impacted results.
See More
