Ross Stores Cooks Up Double-Digit Growth in Q2 2026: Strong Sales, Inventory Management, and Store Expansion Fuel Success
Ross Stores, the operator of Ross Dress for Less and dd's DISCOUNTS, has cooked up a robust double-digit growth in its second quarter 2026 earnings release. According to the company's CEO, Jim Conroy, the 10% comparable store sales increase marks the second consecutive quarter with double-digit comp growth.
The strong performance is attributed to customer traffic, which has been a primary driver of the growth, reflecting the effectiveness of Ross Stores' customer acquisition efforts. The company saw gains from new and lapsed customers, along with more frequent trips and higher spending from existing customers, indicating deeper engagement with both its chains.
Importantly, the new customers being attracted span a broad range of income demographics and age cohorts, including younger shoppers, which reflects the broad appeal of Ross Stores' brand and the success of its marketing efforts in reaching and engaging a diverse customer base. Once in its stores, both new and existing customers are responding to the company's compelling values and broader selection of fashion and brands.
The merchants and planners at Ross Stores have done a terrific job of opening new vendors and satisfying the demands of a wide variety of customers. The company's store organization has also done an excellent job enhancing the in-store shopping experience and managing the elevated sales volumes, which has contributed to its strong performance.
Consistent with recent trends, the strong performance at Ross Stores was broad-based across both merchandise categories and geographies, with home and cosmetics being the strongest businesses. By geography, the company saw strength across all markets, with the Midwest performing the best. dd's DISCOUNTS also delivered solid sales and similar broad-based performance across merchandise areas and geographic regions.
Regarding inventory management, Ross Stores' consolidated inventories at quarter end increased 18%, with packaway representing 36% of total inventory. The company is leveraging its inventory position to meet the demand of higher customer traffic in its stores while also broadening its merchandise offerings on the selling floor across its store base.
This effort has led to higher sales and improved merchandise margins while maintaining fast inventory turns, which has contributed to Ross Stores' success. The company remains confident that its actions across merchandising, marketing, and stores are enhancing the customer experience and driving strong performance.
Looking ahead, Ross Stores is planning to open 115 locations in 2026, up from 110 in prior guidance, and expects approximately 5-10 store relocations and closures. The company's confidence in its ability to continue growing its store base over time has been boosted by the strength of recent openings in both existing and newer markets.
Overall, Ross Stores' double-digit growth in Q2 2026 is a testament to the company's successful strategies and execution across various aspects of its business. As it continues to execute on these plans, investors will be watching closely for further signs of success in the future quarters.
