Yahoo Finance
(NASDAQ:ROST) surged after raising its full-year fiscal 2026 earnings guidance.
The off-price retailer boosted its FY26 EPS target to $8.61–$8.77 from $7.50–$7.74, cruising past consensus estimates of $7.82.
The primary catalyst was a stellar Q2 2026 report.
Total sales rose 13% to $6.3 billion, beating estimates, while comparable-store sales jumped 10% versus 7.6% expected, driven primarily by customer traffic.
Operating profits reached $1.1 billion, with operating margin expanding 610 basis points to include a 405 basis point boost from IEEPA tariff refunds.
$1.56 a year ago), which included a $0.60 per share tariff refund benefit.
Excluding this benefit, adjusted EPS came in at $2.06, still beating expectations driven by broad-based gains across customer demographics.
The company also increased its fiscal 2026 store expansion plan to 115 new locations.
This performance brings up a core question: Does Ross Stores' double-digit comp growth signal sustainable market share gains, or will non-recurring tariff tailwinds and inventory buildup pressure future upside? Wall Street analysts responded aggressively to the quarter.
On August 21, Barclays analyst Adrienne Yih raised the firm's price target on ROST to $298 from $260, keeping an Overweight rating.
She cited the 10% comp beat, noting that Ross's "short-term execution gap versus peers remains wide" while trend strength has continued into Q3.
The same day, Deutsche Bank raised its target to $294 from $283 with a Buy rating, highlighting that comp growth was driven by broad-based transaction gains and management's confidence in accelerating two-year comp momentum.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment