Dollar Tree Posts $506M Q4 Profit on 9% Sales Growth, Guides $20.5B–$20.7B FY26
Dollar Tree swung to a Q4 net income of $506.1m ($2.53/share) versus a $3.69bn loss last year, driven by a 9% rise in net sales to $5.44bn and 5% comparable-store growth. For FY26, the company expects net sales of $20.5–$20.7bn and adjusted EPS of $6.50–$6.90.
1. Q4 Profit Reversal and Sales Growth
In the quarter ending January 31, Dollar Tree delivered net income of $506.1m, or $2.53 per share, reversing a $3.69bn loss a year earlier. Net sales climbed 9% to $5.44bn and comparable-store sales rose 5%, powered by a 6.3% rise in average ticket despite a 1.2% decline in customer traffic.
2. Fiscal 2025 Annual Performance
For the full year ended January 31, net sales increased 10.4% to $19.39bn and net income reached $1.28bn versus a $3.03bn loss previously. Operating income grew 13.1% to $1.65bn as the company opened 402 new stores and expanded its multi-price format to 5,300 locations.
3. Outlook for Fiscal 2026
Dollar Tree forecasts FY26 net sales from continuing operations of $20.5bn to $20.7bn, with comparable-store sales up 3%–4%. The retailer plans roughly 400 new store openings and 75 closures, and projects Q1 sales of $4.9bn–$5bn with adjusted EPS of $1.45–$1.60.
4. Share Reaction and Margin Drivers
Shares rose nearly 4% after the company reported adjusted EPS of $2.56, topping expectations. Gross margins expanded on pricing, product mix and freight efficiencies, while the firm repurchased $1.55bn of shares in fiscal 2025 and $193m in the current quarter.