Ross rides sales growth for discount retailers

Ross Stores joined other major discount retailers posting strong sales gains in the first quarter, including Walmart and Target, as consumers trim budgets in response to spiking gas prices and other household expenses. The Dublin, California-based operator of nearly 2,300 stores, including Ross Dress for Less and dd’s Discounts, reported a 21% annual jump in total sales and 17% rise in same-store sales for the quarter ended May 2.

Total sales topped $6 billion as the company also increased its full-year same-store sales growth outlook to between 6% and 7%, after the company grew sales 5% in 2025. Ross Stores posted first-quarter net income of $650 million, up from $479 million a year earlier.

During an earnings call with analysts, Ross Stores CEO Jim Conroy cited factors including higher customer traffic, “compelling merchandise assortments,” improvements to the in-store experience and spending related to tax refunds. The company opened 13 new Ross stores and four dd's Discounts locations in the first quarter, with plans to continue 5% annual unit growth with about 110 stores to open in 2026. Conroy also reiterated plans to close or relocate about 10 to 15 older stores.

The CEO said first-quarter sales increased across multiple product categories, demographics and regions. The company’s off-price, clearance-focused stores historically have not seen immediate, direct correlation between gas prices and consumer spending, though Conroy said the impact could change depending on how high gas prices rise and how long they stay elevated.

“I would also add the silver lining for off-price is that any uncertainty in the macro environment could lead to customers seeking more value when shopping and create closeout opportunities for us from the supply side,” Conroy said.