Ross Stores, Inc. (NASDAQ: ROST) Q1 Earnings Preview: Key Financials and Growth Drivers

• Wall Street analysts and Ross Stores, Inc. (NASDAQ: ROST) project earnings per share (EPS) between $1.60 and $1.72 for the upcoming quarter.
• Revenue is estimated to reach up to $5.65 billion, marking significant year-over-year growth driven by customer traffic and new store openings.
• Ross Stores shares saw a 2.40% increase to $217.79 ahead of the report, with the company also declaring a $0.45 quarterly cash dividend, reflecting strong financial health and a P/E ratio of 32.44.

Ross Stores, Inc. (NASDAQ: ROST) is a leading off-price retailer that specializes in selling brand-name apparel and home goods at a discount. The company operates successfully under its well-known Ross Dress for Less and dd's DISCOUNTS brands. Competing with other major off-price retailers like TJX Companies, Ross Stores is scheduled to release its highly anticipated earnings report on May 21, 2026.

For the upcoming quarter, Wall Street analysts have provided an earnings per share (EPS) estimate of $1.70. Other analyst forecasts vary, with some predicting an EPS of $1.72, while others, as highlighted by Zacks Investment Research, expect $1.66. The company itself projects its EPS to fall between $1.60 and $1.67 for the quarter.

Revenue is estimated to be around $5.64 billion. This figure represents significant revenue growth from the $4.98 billion reported in the same period last year. Some reports forecast revenue as high as $5.65 billion, while others project it closer to $5.54 billion, indicating an 11.20% year-over-year increase.

This expected growth is primarily driven by strong customer traffic and the strategic opening of 17 new stores. Ahead of the earnings report, Ross Stores shares increased by 2.40% to $217.79. The company also declared a regular quarterly cash dividend of $0.45 per share, a move that often signals robust financial health and confidence.

The company's trailing twelve-month price-to-earnings (P/E) ratio stands at 32.44. This key investor valuation metric indicates that investors are willing to pay $32.44 for every dollar of Ross Stores' annual earnings. Additionally, Ross Stores maintains a debt-to-equity ratio of 0.84, which effectively compares its total debt to its shareholder equity.