Ross Stores Inc. reported stronger-than-expected fourth-quarter results, driven by higher customer traffic, and said it is seeing a “very strong start” to the spring season as it prepares to expand its store footprint.
Net income rose to $646 million, or $2.00 per share, for the quarter ended Jan. 31, up from $587 million, or $1.79 per share, a year earlier.
Total sales increased 12% to $6.6 billion, while comparable store sales jumped 9%, fueled by higher transactions and customer counts.
CEO Jim Conroy said the off-price retailer finished the year with solid momentum, noting that sales and earnings in the fourth quarter significantly exceeded company expectations.
“While early, we are encouraged by the very strong start to the spring season,” Conroy said in the earnings statement.
During fiscal 2025, Ross added 90 stores, including 80 Ross Dress for Less locations and 10 DD’s Discounts stores, and opened its first locations in the New York metro area and Puerto Rico.
The company plans to accelerate expansion in 2026, targeting 110 new stores, including 85 Ross locations and 25 DD’s Discounts.
Ross said it continues to see significant long-term growth potential, with plans to eventually grow the Ross chain to 2,900 stores and DD’s Discounts to 700 stores.
For the full fiscal year, total sales increased 8% to a record $22.8 billion, while comparable store sales rose 5%. Net income totaled $2.1 billion, roughly in line with the prior year, and earnings per share increased to $6.61 from $6.32.
Looking ahead, Ross expects first-quarter comparable sales to rise 7% to 8%, with earnings per share between $1.60 and $1.67.
For the full year, the company forecasts comparable sales growth of 3% to 4% and earnings per share in the range of $7.02 to $7.36.
Ross ended the year with 1,904 Ross Dress for Less stores across 44 states, the District of Columbia, Guam and Puerto Rico, along with 363 DD’s Discounts locations in 22 states.
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