Investing.com -- Ross Stores Inc (NASDAQ: ROST) shares jumped 7% in after-hours trading Thursday after the off-price retailer reported first quarter results that significantly exceeded Wall Street expectations, driven by robust comparable store sales growth and strong customer traffic.

The company posted adjusted earnings per share of $2.02, beating the analyst consensus of $1.71 by $0.31. Revenue reached $6 billion, surpassing the $5.6 billion estimate and representing a 21% increase from $5 billion in the same quarter last year. Comparable store sales surged 17% compared to flat sales in the prior year period.

Operating margin reached 13.4%, well above the company's initial plan of 11.8% to 12.1%, primarily due to the strong sales performance. Chief Executive Officer Jim Conroy attributed the results to "superb execution throughout the business, especially the transition of our Spring assortment." He noted that customer traffic was the primary driver, with compelling merchandise assortments and ongoing marketing initiatives resonating with shoppers.

For the second quarter ending August 1, 2026, Ross Stores forecasts comparable store sales growth of 6% to 7%, with earnings per share projected between $1.85 and $1.93. The midpoint of $1.89 represents growth of approximately 21% compared to $1.56 in the second quarter of 2025. The consensus estimate for the second quarter was not provided.

The company raised its fiscal 2026 outlook, now projecting same store sales growth of 6% to 7% on top of a 5% gain in fiscal 2025. Full-year earnings per share are expected to range from $7.50 to $7.74, representing growth of 13% to 17% compared to $6.61 in fiscal 2025.

During the quarter, Ross Stores repurchased 1.5 million shares for $319 million and remains on track to buy back $1.275 billion in common stock during fiscal 2026.