Dollar Tree Q1 EPS $1.74 Beats Estimates, Raises FY Guidance
DLTR•Dollar Tree delivered Q1 adjusted EPS of $1.74, beating estimates by $0.19 on $4.97 billion revenue (+7.2% YoY) and 3.5% comparable sales growth. It raised full-year EPS guidance to $6.70–7.10 (midpoint $6.90) and projected Q2 EPS of $1.00–1.15 (midpoint $1.08).
1. Q1 Financial Results
Dollar Tree reported adjusted EPS of $1.74, exceeding estimates by $0.19, on revenue of $4.97 billion, up 7.2% year-over-year. Comparable store net sales rose 3.5%, driven by a 4.5% increase in average ticket that offset a 1.0% decline in traffic.
2. Updated Guidance
Management raised fiscal 2026 adjusted EPS guidance to a range of $6.70–7.10, with a midpoint of $6.90 above the $6.67 consensus. The company maintained its revenue outlook at $20.5–20.7 billion and forecast Q2 EPS of $1.00–1.15 (midpoint $1.08) versus analysts’ $0.99 estimate.
3. Margin Expansion Drivers
Operating income margin expanded by 120 basis points to $473.3 million, driven by higher mark-on, lower freight costs and reduced shrink. These gains were partly offset by increased tariff expenses and higher markdowns, yet adjusted operating income still rose 22% year-over-year.
