Dollar Tree Inc. reported second-quarter results that exceeded analyst expectations, yet its shares declined 2.3% to close at $134.48 on Tuesday, even as after-hours trading showed a modest rebound to $135.00.
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, supported by a 3.3% increase in average ticket size and a 0.4% rise in customer traffic. The company also benefited from $1.31 per share in net tariff refunds.
Despite the strong quarter, Dollar Tree’s third-quarter guidance fell short of market expectations. Adjusted EPS is projected at $0.80 to $0.95, below the $1.39 consensus, with the midpoint of $0.88 reflecting a $0.50 impact from reinvestments of tariff refunds. Comparable sales growth is expected to range between 3.0% and 4.0%, with revenue projected at $5.0 billion to $5.1 billion.
For the full fiscal year 2026, Dollar Tree raised its adjusted EPS outlook to $7.70–$8.05, up from the prior range, with the midpoint of $7.88 exceeding the $7.04 consensus. Net sales are forecast at $20.5 billion to $20.7 billion, based on comparable sales growth of 3% to 4%. The updated guidance includes an estimated $0.60 benefit from tariff refunds.
CEO Mike Creedon highlighted the company’s focus on value and convenience, noting that traffic trends supported the strong comparable sales growth and EPS performance. "Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook," Creedon said in a statement.
The stock’s decline followed a day of trading where shares opened nearly 3% lower in premarket activity before closing at $134.48, reflecting investor caution despite the earnings beat.
