Dollar Tree Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.10%.
Did DLTR Beat Earnings? Q1 2026 Results
Dollar Tree delivered a clean beat to open fiscal 2025, with adjusted diluted EPS of $1.26 clearing the $1.21 consensus estimate by 4.51% and revenue of $4.64 billion topping expectations by 2.39% on 11.3% year-over-year growth. The standout driver was the company's accelerating rollout of its multi-price 3.0 store format, which helped fuel a 5.4% comparable sales gain built on both higher traffic and a stronger average ticket, while gross margin expanded 20 basis points to 35.6% on lower freight costs and improved mark-on. The company converted roughly 500 stores to the new format during the quarter, and analysts have noted that these locations are outperforming legacy Dollar Tree stores by a meaningful margin. Looking ahead, Dollar Tree reiterated its full-year net sales outlook of $18.50 billion to $19.10 billion and updated its adjusted EPS range to $5.15 to $5.65, though management cautioned that second-quarter adjusted EPS could fall 45% to 50% year-over-year as tariff pressures and Family Dollar separation costs weigh on near-term results before a stronger second half.
- Same-store net sales growth of 5.4% driven by 2.5% traffic increase and 2.8% average ticket increase
- Gross margin expansion of 20 basis points to 35.6% from lower freight, improved mark-on, and occupancy leverage
- Conversion of approximately 500 stores to 3.0 multi-price format
- Opening of 148 new Dollar Tree stores
- Selling square footage growth of 7.4% year-over-year
“Our strong first quarter performance underscores the progress we've made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making.”
Dollar Tree CEO, on the earnings call
Forward Guidance & Outlook
Dollar Tree reiterated its full-year fiscal 2025 net sales outlook of $18.5 billion to $19.1 billion from continuing operations, based on comparable store net sales growth of 3% to 5%. The company updated its adjusted diluted EPS from continuing operations outlook to $5.15 to $5.65 to reflect year-to-date share repurchases. For Q2, comparable net sales growth is expected towards the higher end of the 3% to 5% full-year range, but adjusted EPS could decline 45-50% year-over-year before re-accelerating in Q3 and Q4. The outlook assumes current tariff levels remain in effect and that most incremental margin pressure from higher tariffs and other input costs can be mitigated. Family Dollar shared services costs will create a $0.30 to $0.35 full-year EPS headwind concentrated in the first half of the year.
DLTR YoY Financials
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Figures from SEC filings and company reports. Not investment advice.