Dollar Tree Inc
Q1 2027 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.04%.
Did DLTR Beat Earnings? Q1 2027 Results
Dollar Tree delivered a standout first quarter for fiscal 2026, with adjusted diluted EPS of $1.74 beating the $1.55 consensus estimate by 12.26% and revenue climbing 7.2% year over year to $4.98 billion, as the company's ongoing shift toward a multi-price format continued to pay off. The primary engine behind the beat was a combination of higher mark-on, lower freight costs, and reduced shrink, which drove operating income up 23% to $473.30 million and pushed operating margin 120 basis points higher to 9.5%. A 3.5% comparable store sales gain, fueled by a 4.5% rise in average ticket, underscored improving consumer engagement across roughly 5,900 multi-price locations, even as a 1.0% traffic dip pointed to lingering pressure on store visits. Free cash flow from continuing operations surged to $391.50 million from $129.70 million a year ago, supporting $595.00 million in share repurchases during the quarter. Looking ahead, the company raised its full-year adjusted EPS outlook to $6.70-$7.10 and guided net sales of $20.50 billion-$20.70 billion, reflecting confidence in sustained comparable store sales growth of 3%-4%.
- Comparable store net sales increased 3.5%, driven by 4.5% increase in average ticket
- Gross margin improved 120 basis points driven by higher mark-on, lower freight costs, and lower shrink
- Operating income margin expanded 120 basis points to 9.5%
- Multi-price format expansion to approximately 5,900 stores
- Lower payroll costs partially offset higher SG&A
- Transition services agreement income of $21.1 million
“Our first quarter results reflect continued progress across the business and demonstrate the strength of Dollar Tree's position as the preferred destination for value, convenience, and discovery.”
Dollar Tree CEO, on the earnings call
Forward Guidance & Outlook
For full-year fiscal 2026, Dollar Tree raised its adjusted diluted EPS outlook to $6.70-$7.10, with net sales expected in the range of $20.5 billion to $20.7 billion based on comparable store net sales growth of 3%-4%. The company expects approximately 400 new store openings and 75 closings. For Q2 fiscal 2026, net sales are expected to range from $4.8 billion to $4.9 billion with comparable store net sales growth of 2.5%-3.5%, and adjusted diluted EPS of $1.00-$1.15. The outlook is on a continuing operations basis and excludes the impact of tariff refunds.
DLTR YoY Financials
DLTR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.