Dollar Tree Inc. reported second-quarter results that exceeded analyst expectations, yet its shares fell in premarket trading as guidance for the current quarter and full year disappointed investors.
The discount retailer posted adjusted earnings per share of $2.70, well above the $1.11 consensus estimate, while revenue reached $4.9 billion, topping the $4.85 billion forecast. Comparable store net sales rose 3.7% year-over-year, driven by a 3.3% increase in average ticket size and a 0.4% rise in customer traffic. The company also benefited from a $1.31 per share net impact related to tariff refunds.
Shares of Dollar Tree slid 3% premarket to $125.96 after closing down 1.71% at $132.18 on Wednesday. The decline followed the release of third-quarter guidance, which fell short of expectations. The company projected adjusted EPS of $0.80 to $0.95, with a midpoint of $0.88, below the $1.39 consensus. Comparable store sales growth was expected to slow to 3.0% to 4.0%, while revenue was forecast at $5.0 billion to $5.1 billion.
For the full fiscal year 2026, Dollar Tree raised its adjusted EPS outlook to $7.70 to $8.05, with a midpoint of $7.88, exceeding the $7.04 consensus. Full-year net sales were projected at $20.5 billion to $20.7 billion, with comparable store sales growth expected between 3% and 4%. The updated guidance included an approximate $0.60 benefit from tariff refunds.
CEO Mike Creedon highlighted the company's focus on value, convenience, and customer experience, noting that positive traffic trends supported strong comparable sales growth and earnings above the high end of guidance. However, the weaker-than-expected outlook for the current quarter weighed on investor sentiment despite the strong quarterly performance.
