Ross Stores posts strong Q4 with 9% sales growth but faces bearish Reddit sentiment over competition and valuation.

Ross Stores reported a strong Q4 FY2026 with a 9% increase in comparable store sales and EPS of $2.00, beating estimates. Despite this, Reddit's r/wallstreetbets shows a very bearish view due to concerns about competition from private labels and online brands, and a high valuation at 32x P/E compared to peers. Management projects slower sales growth of 3-4% for FY2026 but plans to open 110 new stores and increase dividends. The key focus will be if Ross can sustain its momentum and manage tariff costs as it faces a crowded discount retail market.