Ross Stores, Inc. Q4 FY2026 earnings call

James Conroy noted business momentum accelerated in the fourth quarter with sales and earnings surpassing expectations. Comparable store sales growth was driven mainly by an increase in transactions and customers. Inventory was up 8% with packaway representing 37% of total inventory. In 2025, 80 new Ross Dress for Less stores and 10 dd's DISCOUNTS stores were added, including expansion into new markets. Initiatives for 2026 include strong merchandising assortments, effective marketing campaigns, and store improvements that contributed to sales growth.

Ross Dress for Less: Fourth quarter total sales grew 12%, comparable store sales increased by 9% due to more transactions and customers despite weather impact. Full-year total sales rose 8%, comparable store sales grew 5%. dd's DISCOUNTS: Had healthy sales gains throughout the quarter and year, with growth broad-based across merchandise categories and regions.

First quarter 2026 comparable store sales projected to be up 7% to 8% and earnings per share of $1.60 to $1.67. Full year 2026 forecasted same-store sales up 3% to 4%, earnings per share $7.02 to $7.36. Planning to open 110 new locations in 2026, with 85 Ross and 25 dd's DISCOUNTS stores.

Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical performance or current expectations. Risk factors are included in the company's press release and filings with the SEC, such as macro environment changes, tariffs, etc.

Q: Congrats on a great quarter. So Jim, could you elaborate on the inflection to 8% traffic-led comps in the back half of the year?

A: James Conroy said it was broad-based across merchandise categories and regions, with Ladies, Men's, cosmetics, shoes performing well.

Q: What are the key factors driving the acceleration in the ladies business?

A: James Conroy said it's rooted in the brand strategy that reset the vendor base and assortment to bring in branded bargains.