Ross Stores delivered a blowout second quarter, with net income jumping 68% and comparable sales up 10%, as bargain-hunting shoppers flocked to the discount retailer's stores and pushed shares sharply higher on Friday.

The company reported total sales of $6.3 billion for the quarter ended Aug. 1 — up 13% from a year earlier — with the comparable-store sales gain driven by both new and returning customers, according to The Motley Fool. Net income came in at $851.3 million, versus $508 million a year ago, with diluted earnings per share of $2.66 against $1.56 in the prior-year quarter — comfortably ahead of Wall Street's roughly $1.94 estimate.

Tariff Refund Boosted the Bottom Line

Operating income more than doubled to $1.1 billion, with margins expanding around 205 basis points even excluding a roughly $253 million tariff refund that added about 60 cents to per-share earnings, per Investing.com. Through the first half of the year, sales are up 17% to $12.3 billion and comparable sales are up 13%.

ANOTHER BLOWOUT TOP-LINE QUARTER.

"Our performance was fueled by our compelling merchandise offerings, engaging marketing initiatives, and continued enhancements to the in-store experience," CEO Jim Conroy said in the earnings release. Jefferies analysts called it "another blowout top-line quarter" and raised their price target on the stock to $285 from $265.

Ross opened 47 new stores in the quarter and plans 115 total for 2026 — roughly 90 Ross Dress for Less locations and 25 dd's Discounts — bringing its footprint past 1,950 stores across 44 states, D.C., Guam and Puerto Rico. The company also bought back 1.4 million shares for $319 million during the quarter as part of a $1.275 billion annual repurchase authorization.

Shares jumped as much as 8-9% in premarket trading before settling to a roughly 4.4% gain during the regular session, closing around $239, giving Ross a market capitalization near $77 billion.

What's Next

Ross raised its full-year earnings guidance to a range of $8.61 to $8.77 per share, up sharply from $6.61 in fiscal 2025, and guided third-quarter comparable sales growth of 6% to 7%. The upgrade signals management expects the value-shopping surge to continue into the holiday season, even as tariff-related cost pressures remain a wild card for the broader retail sector.