Dollar Tree Q1 2026 earnings beat, raises full-year EPS guidance

Adjusted EPS came successful astatine $1.74 for the 4th ended May 2, 2026, a 38% betterment twelvemonth implicit twelvemonth and good supra the $1.55 statement estimate. Revenue of $5.0 cardinal reflected 7.2% maturation compared with the prior-year period.

For the afloat fiscal twelvemonth 2026, the institution present expects adjusted EPS betwixt $6.70 and $7.10, a scope whose $6.90 midpoint clears the $6.67 expert consensus. Full-year nett income guidance was held dependable astatine $20.5 cardinal to $20.7 billion.

A 4.5% emergence successful mean transaction size pushed comparable store nett income up 3.5% for the period, adjacent arsenic shopper postulation slipped 1.0%. Operating income roseate 23% to $473.3 million, and operating borderline expanded 120 ground points.

On the outgo side, favorable freight rates, amended mark-on, and a simplification successful shrink lifted gross margin, though those benefits were tempered by tariff-related expenses and a emergence successful markdowns, the institution said.

"Our archetypal 4th results bespeak continued advancement crossed the concern and show the spot of Dollar Tree's presumption arsenic the preferred destination for value, convenience, and discovery," CEO Mike Creedon said successful a statement.

The concatenation has steadily rolled retired a multi-price model, stocking merchandise astatine $3 to $5 alternatively than clustering astir its historical astir $1 threshold, according to Bloomberg. The institution ended the 4th with astir 5,900 multi-price stores, aft converting oregon adding astir 630 locations to the format during the period, and operated 9,382 stores successful full crossed its U.S. and Canada banners.

The institution opened 113 caller stores during the 4th and returned $595 cardinal to shareholders done stock repurchases. It besides generated $392 cardinal successful escaped currency flow.

Second-quarter adjusted EPS is projected successful a scope of $1.00 to $1.15, with comparable store nett income maturation anticipated betwixt 2.5% and 3.5%, the institution said.