Dollar Tree Q4 Earnings Beat with $2.56 EPS; Fiscal 2026 EPS Outlook $6.50-$6.90 Misses
Dollar Tree posted Q4 net income of $506.1 million ($2.53 per share) and adjusted EPS of $2.56 on $5.451 billion revenue, up 9% year-over-year, with comps rising 5%. For fiscal 2026, it forecasts EPS of $6.50 to $6.90 and same-store sales growth of 3–4%, missing estimates.
1. Fourth-Quarter Results
Dollar Tree generated net income of $506.1 million, or $2.53 per share, compared to a prior-year loss of $3.70 billion. On a continuing operations basis, adjusted earnings were $2.56 per share, beating estimates by $0.03, while revenue rose 9% to $5.451 billion. Same-store sales grew 5%, driven by a 6.3% increase in average ticket despite a 1.2% traffic decline, and gross margin expanded 150 basis points to 39.1%.
2. Fiscal 2026 Outlook
The company expects fiscal 2026 adjusted EPS of $6.50 to $6.90 and net sales of $20.5 to $20.7 billion, based on same-store sales growth of 3–4%. For the first quarter, Dollar Tree projects adjusted EPS of $1.45 to $1.60 and net sales of $4.9 to $5.0 billion with comparable store growth of 3–4%, both forecasts falling slightly below consensus.
3. Market Reaction
Shares traded down around 3% in premarket activity as investors weighed the Q4 beat against guidance that trailed analyst forecasts. The cautious outlook offset strong margin gains and a 20th consecutive year of positive same-store sales growth.