Discount retail resilience highlighted! Ross Stores, Inc. (ROST.US) has raised its annual profit forecast twice, and same-store sales have seen the longest consecutive increase in nearly five years.

Discount retail giant Ross Stores, Inc. (ROST.US) has raised its annual profit forecast for the second time this year, indicating that the companys growth momentum remains strong. The financial report shows that Ross Stores, Inc. achieved revenue of $6.3 billion in the second quarter, a year-on-year increase of 13.9%, exceeding expectations by $140 million; earnings per share were $2.66, surpassing estimates by $0.71. The company currently expects full-year earnings per share to be between $8.61 and $8.77, up from the previous forecast of $7.50 to $7.74, and above Wall Street expectations. The new median forecast represents a 31% increase compared to the previous year, marking the strongest growth rate since 2022. Due to better-than-expected performance, the company has raised its annual performance outlook and increased the expected number of new store openings in 2026 to 115. This includes 90 Ross Dress for Less stores and 25 dd's DISCOUNTS locations. Although Ross Stores, Inc.s second-quarter earnings included approximately $0.60 per share in tariff refunds, same-store sales still grew by 10%. This marks the second consecutive quarter of double-digit same-store sales growth, a trend not seen in nearly five years. Ross Stores, Inc. has not provided a forecast range for full-year same-store sales but anticipates growth of 6% to 7% in the third quarter and 4% to 5% in the fourth quarter, both exceeding analyst expectations. CEO Jim Cantalupo stated during the earnings call, In this quarter, we have seen growth in new customers and returning lost customers, while existing customers have also increased their frequency of visits and spending. The company plans to open approximately five more new stores this year than previously expected. In other news, the reported performances from retailers were mixed. Target Corporation and Walmart Inc. both raised their annual forecasts, with Target Corporation showing signs of sales growth recovery. However, Walmart Inc.'s results reflected that consumers are under pressure, as a decrease in the average spending per trip resulted in its U.S. same-store sales (excluding fuel) falling short of expectations.