Dollar Tree, Inc. (NASDAQ:DLTR) reported second-quarter results that substantially surpassed analyst expectations, supported by strong same-store sales and margin improvement. The discount retailer’s shares rose 0.7% in premarket trading following the announcement.
For the quarter ending August 2, 2025, Dollar Tree posted adjusted earnings of $0.77 per share, well above the analyst estimate of $0.40. Revenue climbed 12.3% to $4.6 billion, beating the consensus forecast of $4.47 billion. Same-store sales rose 6.5%, driven by a 3.0% increase in customer traffic and a 3.4% rise in average transaction size.
The company noted that quarterly results included roughly $0.20 of positive impact from inventory timing and tariffs. Dollar Tree’s gross margin expanded 20 basis points to 34.4%, fueled by better pricing strategies and lower freight costs, partially offset by higher tariffs 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.
Dollar Tree recently finalized the sale of its Family Dollar business on July 5, 2025, for approximately $800 million in cash, allowing the company to focus entirely on the Dollar Tree brand. During the quarter, the retailer opened 106 new stores and converted around 585 locations to its 3.0 multi-price format.
Looking ahead, Dollar Tree raised its full-year fiscal 2025 net sales guidance to a range of $19.3 billion to $19.5 billion, based on 4% to 6% comparable store sales growth. Previously, the guidance range was $18.5 billion to $19.1 billion. The company also increased its adjusted EPS forecast to $5.32–$5.72, up from $5.15–$5.65.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.