The company’s comparable store sales were up 9% for the quarter ended Jan. 31, on top of a 3% gain during the same period the previous year, and its total sales rose 12%, according to a Tuesday (March 3) earnings release.
Ross Stores CEO Jim Conroy said during a Tuesday earnings call that he believes the largest part of market share came from mainstream retailers. He added that another, larger off-price retailer also posted a solid quarter, so the share didn’t come from them.
“I think the share shift is more from mainstream retail, department stores and other places like that, to off-price in general, and we would just like to get our fair share or, of course, more than our fair share from that shift,” Conroy said.
Ross Stores operates the off-price apparel and home fashion chain Ross Dress for Less and the more moderately priced apparel, accessories, footwear and home fashions chain dd’s DISCOUNTS.
During the fourth quarter, the company saw growth across both businesses, in all merchandise categories and in every region of the country.
Conroy said new marketing campaigns that started around the back-to-school season contributed to this growth, along with some other changes.
“The change in marketing, some in-store changes and of course the assortments being really great,” Conroy said. “In terms of marketing spend, you put all that together, and it just made for a really good Q3 and Q4.”
Looking ahead, Ross Stores expects to see comparable store sales increase 7% to 8% during the current quarter and 3% to 4% during the full year.
“While early, we are encouraged by the continued strength in the business as the spring season begins,” Ross Stores Chief Financial Officer William Sheehan said during the call.
Because of the strength in both comparable store sales growth and new store productivity, Ross Stores plans to continue expanding its store count in 2026, Conroy said.
The company added 90 new stores in 2025, while closing nine, bringing the total to 2,267 at the end of the fourth quarter.
In 2026, Ross Stores plans to open 110 new stores, representing 5% growth. In the longer term, the company plans to boost its total number of stores to 3,600, Conroy said.
A rival off-price retailer, The TJX Companies, is also adding stores after seeing its merchandise appeal to various income and age demographics. The company said Feb. 25 that during the fiscal year ending Jan. 31, 2027, it plans to add 146 net new stores, increasing its store count by about 3%.