In its fourth quarter, the retailer reported earnings per share of $2.00, ahead of consensus at $1.90, with Telsey noting the upside was “driven by sales growth and gross margin leverage.”
Fourth-quarter sales rose 12.2 percent to $6.64 billion, surpassing guidance and expectations. Comparable sales increased 9 percent, more than double the high end of guidance.
Telsey said Ross saw “broad-based strength across departments and geographies,” supported by better assortments and an improved in-store experience. Gross margin expanded to 27.2 percent, well above consensus, while operating margin of 12.3 percent exceeded both guidance and forecasts.
Telsey described the FY26 outlook as solid, with total sales expected to rise 5 percent to 7 percent and comps projected to grow 3 percent to 4 percent.
She highlighted that momentum “has continued into early FY26,” with first-quarter sales guided up 10 percent to 12 percent and comps up 7 percent to 8 percent, well ahead of prior forecasts.
The firm said Ross is planning increased investments in store growth while maintaining “a healthy margin profile and a well-controlled cost structure.” Telsey also cited raised shareholder returns, including a higher dividend and a new $2.55 billion repurchase program.
source https://www.investing.com/news/stock-market-news/telsey-advisory-group-upgrades-ross-stores-after-strong-holidayquarter-beat-4541673
