ROST: Meaningful 1Q Beat and Raise; Believe Our Recent Deep Dive Findings Suggest ROST May Still be in Early Innings of Multi-Year Acceleration, Buy

Research evidence excerpt

ROST: Meaningful 1Q Beat and Raise; Believe Our Recent Deep Dive Findings Suggest ROST May Still be in Early Innings of Multi-Year Acceleration, Buy

May 21, 2026

Simeon Siegel, CFA simeon.siegel@guggenheimpartners.com ROST: Meaningful 1Q Beat and Raise; Believe Our

212 518 9852 Recent Deep Dive Findings Suggest ROST May Still

Edward Wendel, CFA

edward.wendel@guggenheimpartners.com be in Early Innings of Multi-Year Acceleration, Buy

415 934 8448

Daniel Stroller Key Message: This afternoon, ROST reported a remarkable sales beat (despite an daniel.stroller@guggenheimpartners.com already lofty midteens comp expectation) along with an equally impressive GM beat. 929 788 0322

Looking ahead, management guided 2Q above-Street (and we still expect conservatism),

Jonathan Elias while raising the FY (see below). Also, we recently published what we believe to be

jonathan.elias@guggenheimpartners.com the most interesting analysis we’ve ever done on Off Price (which could also just be a

212 381 7573 negative reflection on our prior work…), in our deep dive suggesting five key actions for

Off Price dominance. In the note, we posited that ROST is in process of implementing key

strategies that we expect can drive meaningful multi-year topline expansion. As such,

even with a 17% comp, we continue to believe ROST may well be in early stages of its

topline climb, and we reiterate our Buy rating.ROST BUY

Ross Stores Inc.

Sector: Consumer Discretionary Off-Price Deep Dive: One KPI May Hold the Key to Multi-Year ROST Oppty. After ROST's

P/E finally converged to TJX after their widest and longest divergence in 20+ years, we

Earnings Release pinpointed Sales per Store as the key differentiating KPI, outlined ~5 key actions that fueled