Dollar Tree, Inc. reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong comparable store sales growth and improved margins. The discount retailer’s shares rose 0.7% premarket following the announcement.
For the quarter ended August 2, 2025, Dollar Tree posted adjusted earnings of $0.77 per share, substantially beating the analyst estimate of $0.40. Revenue climbed 12.3% to $4.6 billion, surpassing the consensus forecast of $4.47 billion. Same-store sales increased 6.5%, fueled by a 3.0% rise in customer traffic and a 3.4% increase in average ticket size.
The company noted that its quarterly results included approximately $0.20 of positive impact from the timing of inventory mark-on and tariffs. Dollar Tree’s gross margin expanded 20 basis points to 34.4%, driven by improved pricing initiatives and lower freight costs, partially offset by higher tariff costs and shrink.
"The strong sales growth, margin outperformance, and market share gains that Dollar Tree delivered in the second quarter against an increasingly challenging economic backdrop reinforces the unique position that Dollar Tree occupies in today’s retail landscape," said Mike Creedon, Chief Executive Officer.
The company recently completed the sale of its Family Dollar business on July 5, 2025, for approximately $800 million in total cash proceeds, allowing it to focus exclusively on the Dollar Tree brand. During the quarter, Dollar Tree opened 106 new stores and converted approximately 585 locations to its 3.0 multi-price format.
Looking ahead, Dollar Tree raised its full-year fiscal 2025 net sales outlook to a range of $19.3 billion to $19.5 billion, based on comparable store sales growth of 4% to 6%. The previous range was $18.5 billion to $19.1 billion. The company also lifted its adjusted EPS guidance to $5.32 to $5.72 from between $5.15 and $5.65.
Source :
https://www.investing.com/news/earnings/dollar-tree-beats-q2-expectations-as-samestore-sales-rise-65-4221215
