Financial Analysis

Litigation, Claims, and Assessments Like many retailers, the Company has been named in class/representative action lawsuits, primarily in California, alleging violations by the Company of wage and hour laws. Class/representative action litigation remains pending as of January 31, 2026. The Company is also party to various other legal and regulatory proceedings arising in the normal course of business. Actions filed against the Company may include commercial, product and product safety, consumer, intellectual property, environmental, and labor and employment-related claims, including lawsuits in which private plaintiffs or governmental agencies allege that the Company violated federal, state, and/or local laws. Actions against the Company are in various procedural stages. Many of these proceedings raise factual and legal issues and are subject to uncertainties. In the opinion of management, the resolution of currently pending class/representative action litigation and other currently pending legal and regulatory proceedings will not have a material adverse effect on the Companys financial condition, results of operations, or cash flows. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt Long-term debt. Unsecured senior debt (the Senior Notes), net of unamortized discounts and debt issuance costs, as of January 31, 2026 and February 1, 2025 consisted of the following: ($000) 2025 2024 4.600% Senior Notes due 2025 699,731 0.875% Senior Notes due 2026 499,743 498,503 4.700% Senior Notes due 2027 241,230 240,778 4.800% Senior Notes due 2030 133,134 132,953 1.875% Senior Notes due 2031 496,962 496,390 5.450% Senior Notes due 2050 146,537 146,456 Total long-term debt 1 $ 1,517,606 $ 2,214,811 Less: current portion $ 499,743 $ 699,731 Total due beyond one year $ 1,017,863 $ 1,515,080 1 Net of unamortized discount and debt issuance costs of $7.4 million and $10.2 million as of January 31, 2026 and February 1, 2025, respectively. Interest on all Senior Notes is payable semi-annually and the Senior Notes are subject to prepayment penalties for early payment of principal. In April 2025, the Company repaid at maturity the $700 million principal amount of the 4.600% Senior Notes. The aggregate fair value of the remaining five outstanding series of Senior Notes was approximately $1.5 billion as of January 31, 2026. The aggregate fair value of the six outstanding series of Senior Notes was approximately $2.1 billion as of February 1, 2025. The fair value is estimated by obtaining comparable market quotes which are considered to be Level 1 inputs under the fair value measurements and disclosures guidance. The following table shows scheduled annual principal payments on …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following sales mix table disaggregates revenue by merchandise category for fiscal 2025, 2024, and 2023: 2025 1 2024 2023 Home Accents and Bed and Bath 26 % 26 % 26 % Ladies 22 % 22 % 23 % Mens 15 % 16 % 15 % Accessories, Lingerie, Fine Jewelry, and Cosmetics 15 % 15 % 15 % Shoes 13 % 12 % 13 % Childrens 9 % 9 % 8 % Total 100 % 100 % 100 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation On May 17, 2017, the Companys stockholders approved the Ross Stores, Inc. 2017 Equity Incentive Plan (the 2017 Plan). The 2017 Plan had an initial share reserve of 12.0 million shares of the Companys common stock, which could be increased by a maximum of 5.5 million shares from certain expired, withheld, or forfeited shares from the 2017 Plan or the predecessor plan. The 2017 Plan provides for various types of incentive awards, which may potentially include the grant of stock options, stock appreciation rights, restricted stock purchase rights, restricted stock bonuses, restricted stock units, performance shares, performance units, and deferred compensation awards. Restricted stock. The Company grants shares of restricted stock and restricted stock units to directors, officers, and key employees. The fair value of shares of restricted stock and restricted stock units at the date of grant is amortized to expense over the vesting period of generally three to five years. Performance awards. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock on a specified settlement date based on the Companys attainment of a performance goal during the performance period, which is the Companys fiscal year. If attained, the restricted stock then vests over a service period, generally three years from the date the performance award was granted. In fiscal 2024, the Compa …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements FASB ASC 820, Fair Value Measurement , establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions, maximize the use of observable inputs, and minimize the use of unobservable inputs when measuring fair value. The underlying assets held in Cash and cash equivalents, and restricted cash and cash equivalents include bank deposits, money market mutual funds, and U.S. Government and agency securities for which the fair value is determined using quoted prices for identical assets in active markets, which are considered Level 1 inputs. The fair values of Cash and cash equivalents, and restricted cash and cash equivalents as of January 31, 2026 and February 1, 2025 are as follows: ($000) 2025 2024 Cash and cash equivalents (Level 1) $ 4,594,392 $ 4,730,744 Restricted cash and cash equivalents (Level 1) $ 67,581 $ 65,718 The underlying assets in the Companys nonqualified deferred compensation program are included in Other long-term assets and Other long-term liabilities on the Consolidated Balance Sheets. As of January 31, 2026, the underlying as …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Taxes on Earnings The provision for income taxes for fiscal 2025, 2024, and 2023 consisted of the following: ($000) 2025 1 1 2024 2023 Current Federal $ 508,923 $ 580,253 $ 532,913 State 113,803 95,369 85,169 622,726 675,622 618,082 Deferred Federal 68,901 (7,016) (16,265) State 5,486 (2,182) (4,556) 74,387 (9,198) (20,821) Total $ 697,113 $ 666,424 $ 597,261 1 Foreign income taxes were not material to the consolidated financial statements in fiscal 2025. The provision for taxes for financial reporting purposes is different from the tax provision computed by applying the U.S. federal statutory income tax rate. For fiscal 2025, 2024, and 2023, the differences are reconciled in the tables below: ($000) 2025 Amount Percent Federal income taxes at the statutory rate $ 596,853 21.0 % State and local income taxes, net of federal income tax effect 1 94,238 3.3 % Other adjustments 6,022 0.2 % Total $ 697,113 24.5 % 1 State taxes in California contributed to the majority of the tax effect in this category. 2024 2023 Federal income taxes at the statutory rate 21.0 % 21.0 % State and local income taxes, net of federal income tax effect, and other 3.2 % 3.2 % Total 24.2 % 24.2 % The components of deferred taxes at January 31, 2026 and February 1, 2025 are as follows: ($000) 2025 2024 Deferred Tax Assets Accrued liabilities $ 33,414 $ 32,819 Deferred compensation 48,790 45,689 Stock-based compensation 51,814 53,995 State taxes and credits 20,618 20,534 Employee benefits 34,156 29,549 Oper …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company currently leases its store locations with original, non-cancelable terms that in general range from three years to ten years. Store leases typically contain provisions for three to four renewal options of five years each. The exercise of lease renewal options is at the sole discretion of the Company. Most store leases also provide for minimum annual rentals and for payment of variable lease costs. In addition, some store leases also have provisions for additional rent based on a percentage of sales (percentage rent) and others include rental payments adjusted periodically for inflation. The Companys lease agreements do not contain any material residual guarantees or material restrictive covenants. The Company does not have any financing leases. The Company leases certain distribution/warehouse facilities with expiration dates ranging from 2027 to 2031 and the majority contain renewal provisions. The Company also leases office space for its Los Angeles and Boston buying offices. The lease terms for these facilities expire in 2027 and 2028, respectively. The Los Angeles and Boston buying office facilities contain renewal provisions. I n addition, the Company has a ground lease related to its New York buying office. The following table presents net operating lease cost included in the Consolidated Statement of Earnings for fiscal 2025, 2024, and 2023: ($000) 2025 2024 2023 Operating lease cost 1 $ 843,374 $ 800,834 $ 760,268 Variable lease costs 2 261,306 246, …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. It requires the Company to disclose disaggregated jurisdictional and categorical information for the tax rate reconciliation and the amount of income taxes paid as well as additional income tax related amounts. The Company adopted ASU 2023-09 for the fiscal year ended January 31, 2026 on a prospective basis. The adoption of the standard did not have a material impact on the Companys consolidated financial statements. Recently issued accounting standards. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) : Disaggregation of Income Statement Expenses . The ASU is intended to enhance transparency of income statement disclosures primarily through additional disaggregation of relevant expense captions. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with prospective or retrospective application permitted. The Company is currently evaluating the impact of this guidance on its disclosures in the consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans The Company has a defined contribution plan that is available to employees who meet the eligibility criteria defined in the plan document. Under the plan, employee and Company contributions and accumulated plan earnings qualify for favorable tax treatment under Section 401(k) of the Internal Revenue Code. This plan permits employees to make contributions up to the maximum limits allowable under the Internal Revenue Code. The Company matches up to 4% of the employees salary up to the plan limits. A similar type of plan is available for eligible employees in Puerto Rico. Company matching contributions to the plans were $30.7 million, $28.6 million, and $26.9 million in fiscal 2025, 2024, and 2023, respectively. The Company also makes available to management a Nonqualified Deferred Compensation Plan which allows eligible employees to make payroll contributions on a pre-tax basis. Other long-term assets include $218.7 million and $196.8 million at January 31, 2026 and February 1, 2025, respectively, of long-term plan investments, at market value, set aside or designated for the Nonqualified Deferred Compensation Plan. Refer to Note B: Fair Value Measurements for additional information. Plan investments are designated by the participants, and investment returns are not guaranteed by the Company. The Company has a corresponding liability to participants of $218.7 million and $196.8 million at January 31, 2026 and February 1, 2025, respectively, included in Ot …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company has two operating segments; Ross and dds DISCOUNTS. Each operating segments operations include only activities related to off-price retailing in stores throughout the United States and its territories. The Company determined that the two operating segments share similar economic and other qualitative characteristics and are therefore aggregated into one reportable segment. The Company considers operating income, defined as earnings before interest and taxes, to be the measure of profit or loss for its reportable segment. The measure of segment assets is reported on the Consolidated Balance Sheets as Total assets. Segment information is prepared on the same basis that the Companys Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), manages the segments. The CODM uses operating income to monitor budget versus actual results, make key operating decisions, perform competitive analysis to the Companys peers, and make resource allocation decisions. The financial information below, including the significant expense categories regularly provided to the CODM, is presented for the Companys reportable segment for the fiscal years ended January 31, 2026, February 1, 2025, and February 3, 2024: ($000) 2025 2024 2023 Sales $ 22,750,559 $ 21,129,219 $ 20,376,941 Less: Costs and Expenses 1 Cost of goods sold, excluding occupancy costs 2 15,086,669 13,983,087 13,612,994 Occupancy costs 3 1,360,587 1,277,419 1,188,607 Store related costs 4 3 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Business. Ross Stores, Inc. and its subsidiaries (the Company) is an off-price retailer of first-quality, in-season, brand name and designer apparel, accessories, footwear, and home fashions for the entire family. At the end of fiscal 2025, the Company operated 1,904 Ross Dress for Less (Ross) locations in 44 states, the District of Columbia, Guam, and Puerto Rico and 363 dds DISCOUNTS stores in 22 states. The Ross and dds DISCOUNTS stores are supported by the Companys headquarters, buying offices, and its network of distribution centers and warehouses. Basis of presentation and fiscal year. The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. Intercompany transactions and accounts have been eliminated. The Company follows the National Retail Federation fiscal calendar and utilizes a 52-53 week fiscal year whereby the fiscal year ends on the Saturday nearest to January 31. The fiscal years ended January 31, 2026, February 1, 2025, and February 3, 2024 are referred to as fiscal 2025, fiscal 2024, and fiscal 2023, respectively. Fiscal 2025 and 2024 were each 52-week years. Fiscal 2023 was a 53-week year. Use of accounting estimates. The preparation of consolidated financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (GAAP) requires the Company to make estimates and assumptions that affect the reported am …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Shareholders Equity Stock repurchase program. In March 2024, the Companys Board of Directors approved a two-year program to repurchase up to $2.1 billion of the Companys common stock. This program was completed at the end of fiscal 2025 and followed the previously completed two-year $1.9 billion stock repurchase program, effective through fiscal 2023. The following table summarizes the Companys stock repurchase activity in fiscal 2025, 2024, and 2023: Fiscal Year Shares repurchased (in millions) Average repurchase price Amount repurchased (in millions) 1 2025 7.1 $ 147.61 $ 1,050 2024 7.3 $ 144.46 $ 1,050 2023 8.2 $ 115.24 $ 950 1 Amount excludes excise tax due under the Inflation Reduction Act of 2022. In March 2026, the Companys Board of Directors approved a new, two-year program to repurchase up to $2.55 billion of the Companys common stock through January 29, 2028. Treasury stock. As of January 31, 2026 and February 1, 2025, the Company held 17.0 million and 16.4 million shares of treasury stock, respectively. Shares repurchased for tax withholding are considered treasury shares which are available for reissuance. Shares purchased by the Company for tax withholding totaled 0.6 million, 0.6 million, and 0.5 million shares for fiscal 2025, 2024, and 2023, respectively. Preferred stock. The Company has 4.0 million shares of preferred stock authorized, with a par value of $.01 per share. No preferred stock is issued or outstanding. Dividends. On March 3, 2026, the Companys Bo …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On February 20, 2026, the United States Supreme Court issued a decision that tariffs imposed in 2025 under the International Emergency Economic Powers Act were not authorized under the statute. The Company is currently evaluating the impact of this ruling and any subsequent rulings by lower courts on refunds on its operations and consolidated financial statements, including the amount and timing of any potential recoveries of incremental tariffs paid under this statute.

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Debt Long-term debt. Unsecured senior debt (the Senior Notes), net of unamortized discounts and debt issuance costs, as of May 2, 2026, January 31, 2026, and May 3, 2025, consisted of the following: ($000) May 2, 2026 January 31, 2026 May 3, 2025 0.875% Senior Notes due 2026 $ $ 499,743 $ 498,812 4.700% Senior Notes due 2027 241,344 241,230 240,890 4.800% Senior Notes due 2030 133,179 133,134 132,998 1.875% Senior Notes due 2031 497,106 496,962 496,533 5.450% Senior Notes due 2050 146,558 146,537 146,476 Total long-term debt 1 $ 1,018,187 $ 1,517,606 $ 1,515,709 Less: current portion $ 241,344 $ 499,743 $ 498,812 Total due beyond one year $ 776,843 $ 1,017,863 $ 1,016,897 1 Net of unamortized discounts and debt issuance costs of $6.8 million, $7.4 million, and $9.3 million as of May 2, 2026, January 31, 2026, and May 3, 2025, respectively. Interest on all Senior Notes is payable semi-annually and the Senior Notes are subject to prepayment penalties for early payment of principal. In April 2026, the Company repaid at maturity the $500 million principal amount of the 0.875% Senior Notes. In April 2025, the Company repaid at maturity the $700 million principal amount of the 4.600% Senior Notes. The aggregate fair value of the remaining four outstanding series of Senior Notes was approximately $1.0 billion as of May 2, 2026. The aggregate fair values of the five then outstanding series of Senior Notes were approximately $1.5 billion and $1.4 billion as of January 31, 2026 and May …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following sales mix table disaggregates revenue by merchandise category for the three month periods ended May 2, 2026 and May 3, 2025: Three Months Ended May 2, 2026 May 3, 2025 Home Accents and Bed and Bath 25 % 26 % Ladies 23 % 23 % Accessories, Lingerie, Fine Jewelry, and Cosmetics 15 % 15 % Mens 14 % 14 % Shoes 14 % 13 % Childrens 9 % 9 % Total 100 % 100 % …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation Restricted stock awards. The Company grants shares of restricted stock and restricted stock units to directors, officers, and key employees. The fair value of shares of restricted stock and restricted stock units at the date of grant is amortized to expense over the vesting period of generally three to five years. Performance share awards. The Company has a performance share award program for senior executives. A performance share award represents a right to receive shares of restricted stock on a specified settlement date based on the Companys attainment of a performance goal during the performance period, which is the Companys fiscal year. If attained, the restricted stock then vests over a service period, generally three years from the date the performance award was granted. Restricted stock awards and performance awards are collectively referred to as stock awards. A summary of stock awards activity for the three month period ended May 2, 2026, is presented below: Number of shares (000) Weighted-average grant date fair value Unvested at January 31, 2026 3,814 $ 125.38 Awarded 598 211.93 Released (1,356) 114.28 Forfeited (53) 137.96 Unvested at May 2, 2026 3,003 $ 147.40 The unamortized stock award compensation expense at May 2, 2026 and May 3, 2025 was $271.4 million and $260.3 million, respectively, which are each expected to be recognized over a weighted-average remaining period of 2.1 years. Employee stock purchase plan. Under the Employee Stoc …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements FASB ASC 820, Fair Value Measurement , establishes a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value. The inputs used to measure fair value include: Level 1, observable inputs such as quoted prices in active markets; Level 2, inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, unobservable inputs in which little or no market data exists. This fair value hierarchy requires the Company to develop its own assumptions, maximize the use of observable inputs, and minimize the use of unobservable inputs when measuring fair value. The underlying assets held in Cash and cash equivalents, and restricted cash and cash equivalents include bank deposits, money market mutual funds, and U.S. Government and agency securities for which the fair value is determined using quoted prices for identical assets in active markets, which are considered Level 1 inputs. The fair values of Cash and cash equivalents, and restricted cash and cash equivalents as of May 2, 2026, January 31, 2026, and May 3, 2025 were as follows: ($000) May 2, 2026 January 31, 2026 May 3, 2025 Cash and cash equivalents (Level 1) $ 4,130,980 $ 4,594,392 $ 3,783,413 Restricted cash and cash equivalents (Level 1) $ 68,184 $ 67,581 $ 65,577 As of May 2, 2026 and January 31, 2026, the underlying assets in the Companys nonqualified deferred compensation program consisted of participant-directed mutual funds …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Taxes on Earnings The Companys effective tax rates for the three month periods ended May 2, 2026 and May 3, 2025 were approximately 22.4% and 25.2%, respectively. The decrease of 2.8% in the effective tax rate for the first quarter of fiscal 2026 compared to the first quarter of fiscal 2025 was primarily due to the tax effects associated with stock-based compensation. The Companys effective tax rate represents the applicable combined federal and state statutory rates reduced by the federal benefit of state taxes deductible on federal returns. The Companys effective tax rate is impacted by changes in tax laws and accounting guidance, location of new stores, level of earnings, tax effects associated with stock-based compensation, and the resolution of tax positions with various tax authorities. As of May 2, 2026, January 31, 2026, and May 3, 2025, the reserves for unrecognized tax benefits were $65.3 million, $61.3 million, and $64.9 million, inclusive of $8.1 million, $7.2 million, and $9.0 million of related interest and penalties, respectively. The Company accounts for interest and penalties related to unrecognized tax benefits as a part of its provision for taxes on earnings. If recognized, $52.0 million would impact the Companys effective tax rate. The difference between the total amount of unrecognized tax benefits and the amounts that would impact the effective tax rate relates to amounts attributable to deferred income tax assets and liabilities. These amounts are net o …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) : Disaggregation of Income Statement Expenses . The ASU is intended to enhance transparency of income statement disclosures primarily through additional disaggregation of relevant expense captions. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with prospective or retrospective application permitted. The Company is currently evaluating the impact of this guidance on its disclosures in the consolidated financial statements. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Reporting The Company has two operating segments: Ross and dds DISCOUNTS. The operations of each operating segment include only activities related to off-price retailing in stores throughout the United States and its territories. The Company determined that the two operating segments share similar economic and other qualitative characteristics and are therefore aggregated into one reportable segment. The Company considers operating income, defined as earnings before interest and taxes, to be the measure of profit or loss for its reportable segment. The measure of segment assets is reported on the Condensed Consolidated Balance Sheets as Total assets. Segment information is prepared on the same basis that the Companys Chief Executive Officer, who is the Chief Operating Decision Maker (CODM), manages the segments. The CODM uses operating income to monitor budget versus actual results, make key operating decisions, perform competitive analysis to the Companys peers, and make resource allocation decisions. The financial information below, including the significant expense categories regularly provided to the CODM, is presented for the Companys reportable segment for the three month periods ended May 2, 2026 and May 3, 2025: Three Months Ended ($000) May 2, 2026 May 3, 2025 Sales $ 6,010,476 $ 4,984,971 Costs and Expenses 1 Cost of goods sold, excluding occupancy costs 2 3,873,957 3,254,651 Occupancy costs 3 356,632 326,715 Store-related costs 4 801,156 677,414 Other segme …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Summary of Significant Accounting Policies Basis of presentation. The accompanying unaudited interim condensed consolidated financial statements have been prepared from the records of Ross Stores, Inc. and subsidiaries (the Company) without audit and, in the opinion of management, include all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Companys financial position as of May 2, 2026 and May 3, 2025, and the results of operations, comprehensive income, stockholders equity, and cash flows for the three month periods ended May 2, 2026 and May 3, 2025. The Condensed Consolidated Balance Sheet as of January 31, 2026, presented herein, has been derived from the Companys audited consolidated financial statements for the fiscal year then ended. Certain information and disclosures normally included in the notes to annual consolidated financial statements prepared in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) have been condensed or omitted for purposes of these interim condensed consolidated financial statements. The interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including notes thereto, contained in the Companys Annual Report on Form 10-K for the year ended January 31, 2026. The results of operations, comprehensive income, stockholders equity, and cash flows for the three month periods ended May 2, …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing