Ross Stores (NASDAQ:ROST) reported second-quarter results on Thursday that exceeded Wall Street expectations, despite facing tariff-related pressures, and indicated that industry-wide price increases are likely to boost demand among value-conscious consumers this Fall.
Shares of Ross Stores climbed 3% in premarket trading Friday.
The retailer posted Q2 earnings of $1.56 per share on $5.53 billion in revenue, slightly above analysts’ estimates of $1.53 per share on $5.54 billion. The bottom-line beat occurred even after factoring in a roughly $0.11 per share negative impact from tariffs, which was at the low end of the company’s previously estimated $0.11–$0.16 range.
Same-store sales rose 2% in the quarter, matching the upper end of Ross’s guidance.
“Q2 came in at the high end of what we thought was possible given some acute spending pressure on ROST’s core demos mid-quarter,” Evercore ISI analysts said in a post-earnings note.
For the third and fourth quarters, Ross anticipates store sales growth of 2%–3%. If the second half of 2025 aligns with these projections, the company expects EPS for Q3 and Q4 of $1.31–$1.37 and $1.74–$1.81, respectively.
“We raise 3Q SSS to +4%, maintain 4Q at +3%, and think ROST is well-positioned to beat its 2H guidance significantly,” Evercore added.
Looking ahead to the 52-week period ending January 31, 2026, Ross now forecasts EPS in the range of $6.08–$6.21.
“We anticipate pricing across retail will move higher as we progress through the year, which will lead consumers to seek more value this Fall season,” the company said.
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