Dollar Tree Inc. (NASDAQ:DLTR) shares fell around 3% in pre-market trading despite the discount retailer delivering second-quarter earnings and revenue above Wall Street expectations, as investors focused on a softer-than-anticipated outlook for the third quarter.
Adjusted earnings per share reached $2.70, substantially ahead of the analyst consensus of $1.11. Revenue increased 7.0% year over year to $4.9 billion, also exceeding expectations of $4.85 billion.
The quarterly earnings figure included a $1.31 per-share benefit related to the net impact of tariff refunds.
Comparable sales benefit from higher spending and traffic
Dollar Tree reported comparable store net sales growth of 3.7% during the quarter. The increase was supported by a 3.3% rise in average ticket alongside a 0.4% improvement in customer traffic.
The combination of higher spending per transaction and positive traffic trends provided further evidence of resilient demand across the retailer’s store network.
“What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip,” said Mike Creedon, Chief Executive Officer. “Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook.”
Third-quarter earnings outlook weighs on shares
Despite the strong second-quarter performance, Dollar Tree’s third-quarter guidance came in below market expectations.
The company expects adjusted EPS of between $0.80 and $0.95, giving a midpoint of approximately $0.88. The forecast includes an estimated $0.50 impact associated with the reinvestment of tariff refunds and compares with the analyst consensus of $1.39.
Dollar Tree expects third-quarter comparable store net sales to increase between 3.0% and 4.0%, with revenue forecast at $5.0 billion to $5.1 billion.
Dollar Tree raises full-year earnings forecast
The company’s outlook for the full fiscal year was more encouraging, with Dollar Tree increasing its adjusted EPS guidance to between $7.70 and $8.05.
The midpoint of $7.88 is comfortably above the analyst consensus of $7.04 and includes an estimated $0.60 benefit from the net impact of tariff refunds.
Full-year net sales are expected to reach between $20.5 billion and $20.7 billion, supported by projected comparable store net sales growth of 3% to 4%.
While investors initially focused on the softer third-quarter earnings forecast, Dollar Tree’s strong Q2 performance, continued comparable sales growth and higher full-year profit outlook provide positive indicators for the retailer’s broader fiscal 2026 performance.
Dollar Tree stock price
