Dollar Tree Inc
Q2 2027 Earnings
Includes a $1.31 per share benefit related to the net impact of tariff refunds (IEEPA tariff refunds totaling $383 million, partially offset by $22 million reinvestment in cost of sales, $15 million in SG&A, and $13 million of certain duties on aluminum pans and paper plates, all net of tax)
Market Reaction
Did DLTR Beat Earnings? Q2 2027 Results
Dollar Tree delivered a blowout second quarter of fiscal 2026, posting adjusted EPS of $2.70 against a consensus estimate of $1.13, a beat of 138.60% that extended the company's streak of topping Wall Street expectations to five consecutive quarters. Revenue climbed 7.0% year-over-year to $4.89 billion, edging past the $4.85 billion estimate, as comparable store net sales rose 3.7% on a combination of stronger average ticket and a welcome return to positive traffic. The central driver of the headline numbers was a $383 million windfall from IEEPA tariff refunds, which contributed $1.31 per diluted share and powered an 850 basis-point expansion in gross margin to 42.9%; operating income nearly tripled to $690.10 million. Analysts tracking the company had been watching closely for proof that the aggressive rollout of multi-price store formats, now reaching roughly 6,600 locations, could sustain momentum, and the traffic inflection offered some early validation. Management raised its full-year adjusted EPS outlook to $7.70 to $8.05, while flagging an approximate $0.50 per-share headwind in Q3 as tariff savings are reinvested into pricing and the customer experience.
- Comparable store net sales increased 3.7% driven by 3.3% increase in average ticket and 0.4% increase in traffic
- Net impact of tariff refunds contributed $1.31 per diluted share and 650 basis points to operating income margin
- Gross profit margin expanded 850 basis points to 42.9%
- Lower tariff rates, favorable shrink, and occupancy leverage drove margin improvement beyond tariff refunds
- SG&A decreased 40 basis points as a percentage of revenue to 29.2%
- Lower payroll expenses partially offset by higher marketing and depreciation
“What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip. Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook. Our strategies are unlocking a better assortment in better-run stores, while allowing us to engage customers in more relevant and compelling ways. While we are proud of the progress we have made, we are even more focused on the opportunities ahead as we continue investing in the customer experience, strengthening the business, and driving profitable long-term growth.”
Dollar Tree CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026 (full year): Net sales from continuing operations of $20.5 billion to $20.7 billion based on comparable store net sales growth of 3% to 4%; approximately 400 new store openings and 75 closings; adjusted diluted EPS of $7.70 to $8.05 including an approximate $0.60 benefit from the net impact of tariff refunds. For Q3 fiscal 2026: Net sales of $5.0 billion to $5.1 billion based on comparable store net sales growth of 3.0% to 4.0%; diluted EPS of $0.80 to $0.95 including an approximate $0.50 impact related to tariff refund reinvestments.
DLTR YoY Financials
DLTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.