Ross Stores Sales Rose as Traffic Increased

The off-price retailer boosted earnings through higher volume as consumers shift spending toward discounted goods.

Updated on Sept. 25, 2026 in Retail

Rows of dense garment racks in a retail warehouse, illustrating the volume of discount merchandise. — Ross Stores reported $6.26 billion in sales for the 13-week period ending August 1, as the retailer capitalized on strong demand for discounted apparel. AI Illustration. Upload story photo >

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Ross Stores reported $6.26 billion in total sales for the 13-week period ending August 1, driven by a 10% increase in comparable-store sales. The retailer expanded its footprint to 2,328 locations during the quarter while raising its full-year earnings guidance.

Why it matters

The performance reflects a broader trend of shoppers trading down to off-price retailers to manage budgets. Improved margins were supported by favorable freight costs and a $253 million federal tariff refund, which buffered the bottom line.

Ross Stores posted $851 million in net income, or $2.66 per diluted share, for the 13 weeks ending August 1. The company added 47 new stores to reach a total of 2,328 units while returning $319 million to shareholders through the repurchase of 1.4 million shares.

The players

Ross Stores

A national off-price retail chain that operates over 2,300 stores across the United States.

The details

Growth was fueled by increased customer traffic as the retailer capitalized on demand for value-oriented apparel and home goods. Operational efficiency gains were complemented by a $253 million federal tariff refund, which contributed 405 basis points to margin expansion. The company is managing higher inventory levels, which rose to $3.09 billion to support sales for the second half of the year.

The 13-week financial period concluded on August 1.
The company plans to open 115 new stores throughout 2026.

Market Landscape

Ross Stores' growth tracks the historical pattern of the 2008 retail trade-down shift, where discount retailers capture market share during periods of consumer budget tightening. This performance contrasts with full-price retailers that face challenges in maintaining traffic amid shifting household spending priorities.

Operators should monitor inventory levels relative to sales growth, as the $3.09 billion stockpile at Ross suggests a strategic bet on sustained demand through year-end. Evaluating how tariff-related cost variances impact operating margins is essential for benchmarking retail performance in the current cycle.

The takeaway

The successful capture of value-conscious shoppers highlights the importance of maintaining pricing flexibility and inventory depth during periods of economic transition. Monitor upcoming earnings projections of $8.61 to $8.77 per share to gauge if competitive retail conditions remain favorable for your own cost structure.