- Ross Stores reported 21% total sales growth and 17% comparable sales growth in Q1, prompting the retailer to raise its FY 2026 same-store sales outlook to 6%-7%.
- Customer and store growth are both accelerating, with double-digit increases in customer count across demographics and plans for about 110 new stores this year to expand Ross and dd’s footprint.
- Brand modernization and store refresh efforts are paying off, as updated marketing, improved store environments and a more entrepreneurial culture are helping drive stronger traffic, sales and customer satisfaction, said James Conroy, CEO and Director.
Riding the wave of consumers seeking value, Ross Stores increased total sales 21% and comparable sales by 17% in its Q1, which ended May 2, 2026. Based on the strong showing, the apparel retailer has raised its 2026 FY same-store sales growth projection to the 6%-7% range, on top of the 5% gain it achieved in FY 2025.
Ross Stores also will continue its brick-and-mortar expansion plans: by October 2025, Ross Stores had opened the 90 new stores it had planned for its 2025 fiscal year, which would end in February 2026.
In its 2026 Q1, “We expanded into new and existing markets and opened 13 new Ross and four dd’s Discounts locations in the first quarter, and we continue to plan for 5% unit growth for approximately 110 new stores this year, comprised of about 85 Ross and 25 dd’s,” said James Conroy, CEO and Director of Ross Stores during a conference call discussing the results. “As usual, these numbers do not reflect our plans to close or relocate about 10 to 15 older stores.”
Attracting More Customers Across Demographic Groups
Conroy, who was named CEO of Ross Stores in December 2024, credited enhanced customer acquisition as one key element of the retailer’s strong results. Increased transactions are being “driven by more customers; we’re seeing a double-digit increase in customer count on a comp store basis,” he said. “We’re seeing that very strong growth across ethnicities, all age groups, including the young customer, all income levels.”
Ross Stores is seeking to maintain this momentum with efforts to “modernize the creative message,” said Conroy, adding that “we’re mixing up our media mix. We’re doing more events. All of those things are adding to the proverbial top of funnel.
“I think we’re in the very early stages of focusing on contemporizing the Ross and dd’s brands and having them get their own sort of followership,” Conroy added. You can see our television spots and you can follow us on social media. I think it’s a very refreshing view of how to go to market in retailing, and certainly in off-price retailing.”
Store Refreshes Having a Positive Impact
Ross Stores also has been in the process of refreshing its stores, “to try to give a more modern look and feel for our customer,” said Michael Hartshorn, Group President, COO and Director at Ross during the conference call. “The refresh was mainly new perimeter signing and wayfinding signage along with addressing cosmetic repairs,” he added.
The retailer refreshed about half of its stores last year and then decided to pause for two reasons, Hartshorn added: “First, we wanted to be able to measure the sales impact, and we did see a sales impact in those stores. We also saw improvement in customer surveys on the shopping experience. We also wanted to pause and see if there’s other changes we want to make in the next half, and also look at new store prototypes if there’s anything we want to change, from look and feel or how we’re merchandising the store.”
Encouraging a More Entrepreneurial Culture
Conroy reflected on the changes since he started in the top job. “Look, I inherited a well-run company with a great culture,” he said. “I think if there’s been any sort of shift in how we operate, it was a little bit of harkening back to the earlier days in Ross when it was very entrepreneurial. And we’ve sort of challenged ourselves to spark more growth, empower people to make quick decisions, be entrepreneurial, balance our pretty heavy focus on risk aversion with a little bit more of a growth orientation. And I think internally, the team has been very welcoming of that.
“So yes, I would say if you think of a continuum between playing defense and offense, we’ve shifted the whole company and the culture a little bit more towards offense, but still always being prudent and not taking undue risk,” Conroy added. “But again, I just want to say one more time. I was very lucky to be able to inherit a company that was already very well run and already successful. And we’ve just been able to layer on some initiatives to augment that growth.”
