Tariff refunds boost Dollar Tree earnings; sales rise 7%
Dollar Tree Inc. reported strong second quarter earnings, boosted by comparable store sales gains and tariff refunds.
The extreme discounter reported earnings per share of $2.70, including a $1.31 benefit related to the net impact of tariff refunds, for the quarter ended Aug. 1, compared to $0.91 in the year-ago period. Analysts had expected earnings of $1.15 per share.
Net sales increased 7.0% to $4.9 billion. Comparable store net sales increased 3.7%, driven by a 3.3% increase in average ticket and a 0.4% increase in traffic.
“Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook,” stated Dollar Tree CEO Mike Creedon. “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."
The retailer opened 75 new Dollar Tree stores during the quarter. It also continued to expand its multi-price format that features merchandise above (at $3 to $5) its traditional $1 price point. It converted or added about 710 stores to the format, for a total 6,600 multi-price stores.
[READ MORE: Dollar Tree's new distribution center to serve stores across West, Southwest]
Guidance
For the full fiscal year 2026, Dollar Tree now expects adjusted earnings per share of $7.70 to $8.05, up from a prior range of $6.70 to $7.10, with tariff refunds accounting for approximately $0.60 per share of the improvement. In line with its previous forecast, sales are expected in the range of a $20.5 billion to $20.7 billion, with comparable store net sales growth of 3% to 4%.
For the third quarter, Dollar Tree projected adjusted EPS of $0.80 to $0.95, including a $0.50-per-share impact tied to tariff refund reinvestments. The company expects net sales of $5.0 billion to $5.1 billion and comparable sales growth of 3% to 4%.
The retailer ended the quarter with 9,436 stores across 48 states and seven Canadian provinces under the Dollar Tree and Dollar Tree Canada banners.
