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Stephanie Stahl, a Director at Dollar Tree, Inc. (DLTR -5.62%), sold 1,185 shares of common stock on Sept. 4, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$155,792Shares sold1,185Post-transaction shares (directly held)4,089Post-transaction value$537,376.38Transaction value based on SEC Form 4 weighted average sale price ($131.47); post-transaction value based on Sept. 04, 2026, market close ($131.42).

Key questionsWhat is the scale of the insider's remaining equity interest?
Stahl retains direct ownership of 4,089 shares of common stock, representing an approximate 0.0021% ownership stake in the $24.7 billion discount retailer.How did the execution price compare to the current market valuation?
The transaction was executed at $131.47 per share, slightly above the $131.42 market close on Sept. 4, 2026.What are the company's fundamental financial metrics?
Dollar Tree reported trailing-twelve-month revenue of $20.1 billion and a net income of $1.6 billion.Company OverviewMetricValueShare Price (as of market close 2026-09-04)$131.42Market Capitalization$24.7 billionRevenue (TTM)$20.1 billionNet Income (TTM)$1.6 billionCompany SnapshotDollar Tree, Inc. is a retailer with a diverse product portfolio, including consumables, health and personal care products, household cleaning supplies, paper goods, and frozen or refrigerated foods, with merchandise priced at a consistent $1.25 per item.The company generates revenue through a high-volume discount retail model that emphasizes value pricing and operational efficiency, enabling consistent profitability across its extensive store network serving price-conscious consumers.Dollar Tree targets budget-conscious households and value-seeking consumers across North America, leveraging its fixed-price point strategy and broad merchandise assortment to capture market share in the discount retail segment.Dollar Tree, Inc. is a leading discount retailer with approximately 150,000 employees and a market capitalization of $24.7 billion, generating $20.1 billion in TTM revenue. The company's competitive advantage derives from its distinctive $1.25 fixed-price model, which collectively serves millions of consumers seeking value-oriented shopping experiences. With a one-year stock price appreciation of 31.09%, the company has demonstrated strong operational execution and market resilience within the consumer defensive sector.

What this transaction means for investorsStephanie Stahl sold a significant portion of her Dollar Tree stock, unloading about 22% of her holdings. Admittedly, that percentage might alarm investors, given that the Form 4 does not mention a specific reason for the transaction.

Moreover, Dollar Tree stock has had a nice run over the last year. The consumer staples stock struggled for years but has prospered since the company announced the sale of its Family Dollar division, which it completed in July 2025. Given the aforementioned 31% gain, one might wonder whether Stahl was locking in some gains.

Premium Feature

Moneyball Superscore

64/100

Today's Change

(

-5.62

%) $

-7.38

Current Price

$

124.04

Whatever the reason for her sale, the state of Dollar Tree may also explain why she kept most of her stock. The budget pricing model makes it more recession-resistant, and with Family Dollar no longer a concern, the retailer can again focus exclusively on its core business.

Additionally, its net income climbed by 62% yearly in the first half of fiscal 2026 (ended Aug. 1). At a P/E ratio of just 16, investors like Stahl are likely to want to stay invested in Dollar Tree stock.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Dollar Tree, Inc. (NASDAQ:DLTR) is trading sideways on Tuesday. It rallied by more than 4%yesterday after the company reported its earnings. The shares are getting close to a level that may have resistance. This could put a ceiling over the price. That is why Dollar Tree is the Stock of the Day.

‘Sell at former tops’ is an old Wall Street adage. It refers to how stocks tend to encounter resistance when they reach a level that has previously been a peak.

There can be resistance at a price that had previously been resistance because of remorseful or regretful buyers.

These are people who purchased shares at the previous top who have regretted doing so ever since. They have a losing position after the price drops.

When the shares climb back to the peak level, they have a chance to exit their positions at breakeven. They place sell orders and if there are enough of them, it will create resistance at the level again.

Dollar Tree Breaks Short-Term ResistanceYesterday, there was resistance around $133.50.

Buyers overpowered sellers, and the shares rallied. But they are getting close to another level that may provide resistance.

As you can see in the chart, Dollar Tree reached an all-time high of around $141.50 in January. There are traders and investors who bought shares there and have regretted it ever since.

If the stock returns to this level, they will place sell orders to finally exit their positions without losing money. If there is a large enough quantity of these orders, it can form resistance at the former high.

Some old trading expressions may not seem to make sense.

But some are based on market principles. ‘Sell at former’ tops is one of them.

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CHESAPEAKE, Va.--(BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR) today reported financial results for its second quarter ended August 1, 2026.

"What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip,” said Mike Creedon, Chief Executive Officer. “Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook. Our strategies are unlocking a better assortment in better-run stores, while allowing us to engage customers in more relevant and compelling ways. While we are proud of the progress we have made, we are even more focused on the opportunities ahead as we continue investing in the customer experience, strengthening the business, and driving profitable long-term growth."

Additional Business Highlights

Opened 75 new Dollar Tree stores during the quarter Converted or added about 710 stores to the Dollar Tree multi-price format, ending the quarter with approximately 6,600 multi-price stores Generated $922 million of net cash provided by operating activities from continuing operations and $675 million of free cash flow Q3 quarter-to-date share repurchases totaled $5.3 million Ended the quarter with 9,436 stores across the Dollar Tree U.S. and Dollar Tree Canada banners Second Quarter 2026 Key Operating Results (unaudited)

(from continuing operations unless otherwise noted)

(Compared to same period fiscal 2025)

Q2

Fiscal 2026

Change

Net Sales

$4.9B

7.0%

Same-Store Net Sales Growth

3.7%

Operating Income

$690M

198.7%

Diluted EPS

$2.70

260.0%

Adjusted Operating Income1

$690M

192.4%

Adjusted Diluted EPS1

$2.70

250.6%

1 For the second quarter of 2025, adjustments are for strategic review costs. See "Reconciliation of Non-GAAP Financial Measures" below for detailed schedules of this adjustment for the prior year comparable period.

  Second Quarter Results

Results for the second quarter ended August 1, 2026 are presented on a continuing operations basis. Continuing operations reflect the results of the Dollar Tree U.S. and Dollar Tree Canada banners.

Unless otherwise noted, all comparisons are to the prior-year second quarter ended August 2, 2025 for the results of continuing operations.

Net sales increased 7.0% to $4.9 billion. Comparable store net sales increased 3.7%, driven by a 3.3% increase in average ticket and a 0.4% increase in traffic.

Gross profit margin increased 850 basis points to 42.9% and included 680 basis points related to the net impact of tariff refunds. The remaining improvement in gross margin rate was primarily driven by lower tariff rates, favorable shrink, and occupancy leverage, partially offset by sales mix.

Selling, general and administrative expenses decreased 40 basis points to 29.2% of total revenue. SG&A included 30 basis points of tariff refund related reinvestment. The remaining year-over-year decrease primarily reflected lower payroll expenses partially offset by higher marketing and depreciation.

Adjusted selling, general and administrative expenses inclusive of transition services agreement income, net decreased 50 basis points as a percent of total revenue and included 30 basis points of tariff refund related reinvestment.

Transition services agreement income, net was $18 million for services provided between Dollar Tree and Family Dollar following the sale.

Operating income was $690 million and operating income margin was 14.1%. Operating income margin expanded 900 basis points versus the prior year period and included a 650 basis point benefit related to the net impact of tariff refunds. Adjusted operating income margin expanded 890 basis points including a 650 basis point benefit related to the net impact of tariff refunds.

The Company’s effective tax rate was 25.0%, compared to 25.5% in the prior-year period.

Income from continuing operations was $515 million and diluted earnings per share was $2.70, including a $1.31 benefit related to the net impact of tariff refunds.

The Company repurchased 5.6 million shares of its common stock during the second quarter of fiscal 2026 for $605 million, excluding applicable excise tax.

As of August 1, 2026, the Company had $2.5 billion remaining under its share repurchase authorization, $1.1 billion of cash and cash equivalents, no commercial paper outstanding, and no borrowings under its revolving credit facility.

Year-to-Date Results

Results for the 26 weeks ended August 1, 2026 are presented on a continuing operations basis. Continuing operations reflect the results of the Dollar Tree U.S. and Dollar Tree Canada banners.

Unless otherwise noted, all comparisons are to the prior-year 26 weeks ended August 2, 2025 for the results of continuing operations.

Net sales increased 7.1% to $9.9 billion. Comparable store net sales increased 3.6%, driven by a 3.9% increase in average ticket, partially offset by a 0.3% decrease in traffic.

Gross profit increased 21.9% to $3.9 billion and gross profit margin expanded 480 basis points to 39.8%, which includes a 340 basis point benefit from the net impact of tariff refunds. The remaining year-over-year improvement reflected higher mark-up from pricing initiatives, lower shrink and lower import freight costs, partially offset by higher tariff costs.

Selling, general and administrative expenses were 28.5% of total revenue, compared with 28.4% in the prior-year period. The increase primarily reflected higher marketing investments, general liability costs and depreciation expense from store investments, partially offset by lower payroll expenses.

Adjusted selling, general and administrative expenses inclusive of transition services agreement income, net decreased 20 basis points as a percent of total revenue.

Transition services agreement income, net was $39 million for services provided between Dollar Tree and Family Dollar following the sale.

Operating income increased 89.1% to $1.16 billion and operating income margin expanded approximately 510 basis points to 11.8%. Adjusted operating income margin expanded 500 basis points including a 320 basis point benefit related to the net impact of tariff refunds.

The Company’s effective tax rate was 25.0%, compared with 25.8% in the prior-year period. Income from continuing operations was $862 million and diluted earnings per share from continuing operations was $4.44, including a $1.29 net benefit of tariff refunds.

The Company repurchased 11.1 million shares for $1.2 billion, excluding applicable excise tax.

Fiscal 2026 Outlook

Net sales from continuing operations of $20.5 billion to $20.7 billion, based on comparable store net sales growth of 3% to 4% Approximately 400 new store openings and 75 closings Adjusted diluted EPS of $7.70 to $8.05 including an approximate $0.60 benefit related to the net impact of tariff refunds Third Quarter 2026 Outlook

Net sales from continuing operations of $5.0 to $5.1 billion, based on comparable store net sales growth in the range of 3.0% to 4.0%. Third quarter diluted EPS is currently expected to be in the range of $0.80 to $0.95 including an approximate $0.50 impact related to tariff refund reinvestments Conference Call Information

On August 27, 2026, the Company will host a conference call to discuss its earnings results at 8:00 a.m. Eastern Time. The telephone number for the call is (877) 407-3943 or (201) 689-8855. A recorded version of the call will be available for seven days after the call and may be accessed by dialing (877) 660-6853 or (201) 612-7415. The access code is 13762117. A webcast of the call is also accessible through the Investor Relations portion of the Company’s website.

Supplemental financial information for the second quarter is available on the Investor Relations portion of the Company’s website, at https://corporate.dollartree.com/investors.

Dollar Tree, Inc., headquartered in Chesapeake, VA, is one of North America’s largest and most loved value retailers, known for delivering great value, convenience, and a “thrill-of-the-hunt” discovery shopping experience. With a team of more than 150,000 associates, Dollar Tree operates more than 9,400 stores and 19 distribution centers across 48 contiguous states and seven Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The Company is committed to being a responsible steward of its business – supporting its people, serving its communities, and creating lasting value. To learn more about the Company, visit www.DollarTree.com.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). From time to time, the Company supplements the reporting of its financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP financial measures we have disclosed include adjusted corporate selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net; adjusted corporate selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net as a percentage of total revenue; adjusted selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net; adjusted selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net as a percentage of total revenue; adjusted selling, general and administrative expenses, exclusive of corporate selling, general and administrative expenses; adjusted selling, general and administrative expenses, exclusive of corporate selling, general and administrative expenses as a percentage of total revenue; adjusted operating income; adjusted operating income margin; adjusted income from continuing operations; adjusted income from continuing operations as a percentage of total revenue; adjusted diluted earnings per share - continuing operations; and adjusted effective tax rate, in each case with respect to our continuing operations; and free cash flow.

Reconciliations of the non-GAAP financial measures to the corresponding amounts prepared in accordance with GAAP appears in the tables under the heading “Reconciliation of Non-GAAP Financial Measures” below. These tables provide additional information regarding the adjusted measures.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “believe”, “anticipate”, “expect”, “intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”, “should”, “predict”, “possible”, “potential”, “continue”, “strategy”, and similar expressions. For example, our forward-looking statements include statements relating to our business and financial outlook for fiscal 2026, including without limitation our expectations regarding net sales, comparable store sales and adjusted diluted earnings per share for the third fiscal quarter and full fiscal year 2026, new store openings and closings for 2026 and various factors that are expected to impact our quarterly and annual results of operations for fiscal 2026; the direct and indirect impacts of current and potential tariffs and other trade-related measures and our plans to mitigate those impacts; tariff refunds and our reinvestment plans; our plans and expectations regarding our business, including the impact of various initiatives, investments, and strategies on the company’s performance and prospects for long-term growth; and our other plans, objectives, expectations (financial and otherwise) and intentions. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed March 16, 2026, our Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. Except as otherwise required by law, we are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

DOLLAR TREE, INC.

Condensed Consolidated Income Statements

(In millions, except per share data)

(Unaudited)

13 Weeks Ended

26 Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Revenues

Net sales

$

4,886.5

$

4,566.8

$

9,857.0

$

9,203.3

Other revenue

4.7

3.6

10.0

6.8

Total revenue

4,891.2

4,570.4

9,867.0

9,210.1

Expenses and other operating items

Cost of sales

2,792.2

2,996.7

5,933.2

5,983.7

Selling, general and administrative expenses

1,426.6

1,350.7

2,809.2

2,619.3

Transition services agreement income, net

17.7

8.0

38.8

8.0

Operating income

690.1

231.0

1,163.4

615.1

Interest expense, net

17.8

22.8

34.1

45.5

Other income, net

(14.1

)

(0.4

)

(19.5

)

(62.1

)

Income from continuing operations before income taxes

686.4

208.6

1,148.8

631.7

Provision for income taxes

171.9

53.1

287.0

162.7

Income from continuing operations

514.5

155.5

861.8

469.0

Income from discontinued operations, net of tax

—

32.9

—

62.8

Net income

$

514.5

$

188.4

$

861.8

$

531.8

Net earnings per share:

Basic from continuing operations

$

2.70

$

0.75

$

4.45

$

2.23

Basic from discontinued operations

—

0.16

—

0.30

Basic per share of common stock

$

2.70

$

0.91

$

4.45

$

2.53

Basic weighted average number of shares

190.6

207.3

193.7

210.4

Diluted from continuing operations

$

2.70

$

0.75

$

4.44

$

2.22

Diluted from discontinued operations

—

0.16

—

0.30

Diluted per share of common stock

$

2.70

$

0.91

$

4.44

$

2.52

Diluted weighted average number of shares

190.9

207.8

194.1

210.8

Selling, general and administrative expense rate

29.2

%

29.6

%

28.5

%

28.4

%

Transition services agreement income, net as a percentage of total revenue

0.4

%

0.2

%

0.4

%

0.1

%

Operating income margin

14.1

%

5.1

%

11.8

%

6.7

%

Income from continuing operations before income taxes as a percentage of total revenue

14.0

%

4.6

%

11.6

%

6.9

%

Effective tax rate

25.0

%

25.5

%

25.0

%

25.8

%

Income from continuing operations as a percentage of total revenue

10.5

%

3.4

%

8.7

%

5.1

%

The selling, general and administrative expense rate and operating income margin are calculated by dividing the applicable amount by total revenue.

Amounts in tables above may not recalculate due to rounding.

DOLLAR TREE, INC.

Condensed Consolidated Balance Sheets

(In millions)

(Unaudited)

August 1, 2026

January 31, 2026

August 2, 2025

ASSETS

Current Assets:

Cash and cash equivalents

$

1,058.1

$

717.8

$

666.3

Merchandise inventories

2,452.2

2,495.4

2,683.4

Other current assets

234.3

233.0

264.2

Total current assets

3,744.6

3,446.2

3,613.9

Restricted cash

43.7

42.9

77.5

Property, plant and equipment, net

5,100.9

4,959.6

4,652.4

Operating lease right-of-use assets

4,559.1

4,435.1

4,393.2

Goodwill

422.1

423.2

422.4

Deferred income taxes, net

1.7

1.0

85.5

Other assets

157.5

158.2

140.0

Total assets

$

14,029.6

$

13,466.2

$

13,384.9

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term borrowings

$

—

$

—

$

299.5

Current portion of operating lease liabilities

1,011.0

1,000.2

976.7

Accounts payable

1,626.5

1,530.7

1,593.8

Other current liabilities

665.6

697.7

616.9

Total current liabilities

3,303.1

3,228.6

3,486.9

Long-term debt, net

2,933.5

2,431.7

2,429.7

Operating lease liabilities, long-term

3,726.3

3,623.7

3,636.8

Deferred income taxes, net

347.9

153.3

—

Income taxes payable, long-term

23.4

29.7

27.6

Other liabilities

270.1

244.3

198.8

Total liabilities

10,604.3

9,711.3

9,779.8

Shareholders' equity

3,425.3

3,754.9

3,605.1

Total liabilities and shareholders' equity

$

14,029.6

$

13,466.2

$

13,384.9

The January 31, 2026 information was derived from the audited consolidated financial statements as of that date.

DOLLAR TREE, INC.

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

26 Weeks Ended

August 1, 2026

August 2, 2025

Cash flows from operating activities:

Net income

$

861.8

$

531.8

Income from discontinued operations, net of tax

—

62.8

Income from continuing operations

$

861.8

$

469.0

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:

Depreciation and amortization

356.8

313.1

Provision for deferred income taxes

193.9

158.7

Stock-based compensation expense

40.7

31.6

Impairments

0.4

0.1

Gain on insurance proceeds related to fixed assets

—

(41.0

)

Other non-cash adjustments to income from continuing operations

22.6

14.6

Changes in operating assets and liabilities:

Merchandise inventories

40.2

(7.4

)

Income taxes receivable

3.0

(18.0

)

Other current assets

(4.4

)

(52.7

)

Other assets

(17.0

)

(17.3

)

Accounts payable

97.2

(114.0

)

Income taxes payable

—

(121.0

)

Other current liabilities

(38.6

)

41.1

Other liabilities

19.4

15.5

Operating lease right-of-use assets and liabilities, net

(10.5

)

(33.1

)

Net cash provided by operating activities of continuing operations

1,565.5

639.2

Cash flows from investing activities:

Capital expenditures

(498.8

)

(493.9

)

Proceeds from sale of discontinued operations

—

668.0

Cash divested from sale of discontinued operations

—

(246.0

)

Proceeds from insurance recoveries

—

50.0

Proceeds from (payments for) fixed asset disposition

(1.0

)

0.7

Net cash used in investing activities of continuing operations

(499.8

)

(21.2

)

Cash flows from financing activities:

Proceeds from long-term debt

500.0

—

Principal payments for long-term debt

—

(1,000.0

)

Debt-issuance costs

—

(3.8

)

Proceeds from commercial paper notes

—

3,692.9

Repayments of commercial paper notes

—

(3,393.7

)

Proceeds from stock issued pursuant to stock-based compensation plans

3.8

4.9

Cash paid for taxes on exercises/vesting of stock-based compensation

(18.7

)

(12.1

)

Payments for repurchase of stock

(1,208.9

)

(924.2

)

Net cash used in financing activities

(723.8

)

(1,636.0

)

Cash flows from discontinued operations:

Net cash provided by operating activities of discontinued operations

—

343.3

Net cash used in investing activities of discontinued operations

—

(79.8

)

Net cash provided by discontinued operations

—

263.5

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(0.8

)

0.6

Net change in cash, cash equivalents and restricted cash

341.1

(753.9

)

Cash, cash equivalents and restricted cash at beginning of period

760.7

1,511.2

Cash, cash equivalents and restricted cash at end of period

$

1,101.8

$

757.3

DOLLAR TREE, INC.

Store Activity and Selected Sales Data

(Unaudited)

13 Weeks Ended

26 Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Store Count:

Beginning

9,382

9,016

9,282

8,881

New stores

75

106

188

254

Stores converted from Family Dollar (a)

—

36

—

41

Closings

(21

)

(10

)

(34

)

(28

)

Ending

9,436

9,148

9,436

9,148

Selling Square Footage (in millions)

84.0

81.2

84.0

81.2

Growth Rate (Square Footage)

3.4

%

8.0

%

3.4

%

8.0

%

52 Weeks Ended

August 1, 2026

August 2, 2025

Sales per Square Foot (b)

$243

$237

(a)

Stores converted from a Family Dollar store to a Dollar Tree store are reflected in the table above when they re-opened as a Dollar Tree store.

(b)

Sales per square foot is calculated based on total net sales for the reporting period divided by the average selling square footage during the period.

DOLLAR TREE, INC.

Reconciliation of Non-GAAP Financial Measures

(In millions, except per share data)

(Unaudited)

From time-to-time, the Company discloses certain financial measures not derived in accordance with GAAP. These non-GAAP financial measures should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purposes of analyzing operating performance, financial position, liquidity, or cash flows. The non-GAAP financial measures we have disclosed include adjusted corporate selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net; adjusted corporate selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net as a percentage of total revenue; adjusted selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net; adjusted selling, general and administrative expenses, exclusive and inclusive of transition services agreement income, net as a percentage of total revenue; adjusted selling, general and administrative expenses, exclusive of corporate selling, general and administrative expenses; adjusted selling, general and administrative expenses, exclusive of corporate selling, general and administrative expenses as a percentage of total revenue; adjusted operating income; adjusted operating income margin; adjusted income from continuing operations; adjusted income from continuing operations as a percentage of total revenue; adjusted diluted earnings per share - continuing operations; and adjusted effective tax rate, in each case with respect to our continuing operations. The Company believes providing additional information in these non-GAAP measures that exclude the unusual expenses and income described below is beneficial to the users of its financial statements in evaluating the Company's current operating results in relation to past periods. In addition, the Company's debt covenants exclude the impact of certain unusual expenses. The Company has included a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures in the following tables.

  1.)

During the first quarter of fiscal 2025, the Company entered into a definitive agreement to sell the Family Dollar business, and completed the sale on July 5, 2025. We incurred consulting, legal and other expenses related to the sale and separation activities, including costs associated with optimizing the remaining Dollar Tree business post-divestiture. Costs associated with these activities incurred in the second quarter and first half of fiscal 2025 totaled $5.0 million and $8.7 million, respectively.

2.)

During the first quarter of fiscal 2024, a tornado destroyed our Dollar Tree distribution center in Marietta, Oklahoma ("DC 8"). As a result of the destruction, we have incurred losses totaling $129.0 million, consisting of $70.0 million related to damaged inventory and $59.0 million related to property and equipment. These losses are fully insured and therefore not contemplated in the non-GAAP adjustments below. Since the end of the first quarter of fiscal 2024, we have received insurance proceeds totaling $125.0 million related to damaged inventory, and $100.0 million related to damaged property, including $70.0 million in the first quarter of fiscal 2025 and $5.2 million in the first quarter of fiscal 2026. In the fourth quarter of fiscal 2024, we recorded a gain of $29.7 million for insurance proceeds received. We recorded additional gains in the first quarters of fiscal 2025 and fiscal 2026 totaling $61.8 million and $5.2 million, respectively, for insurance proceeds received.

In addition, the Company discloses free cash flow, a non-GAAP financial measure that we calculate as net cash provided by operating activities less capital expenditures. The Company believes free cash flow is an important indicator of our liquidity as it measures the amount of cash we generate from our business operations. Free cash flow may not represent the amount of cash flow available for general discretionary use, because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations. The Company has included a reconciliation of free cash flow to the most comparable GAAP measures in the following tables.

A reconciliation of the projected adjusted diluted EPS, which is a forward-looking non-GAAP financial measure, to the most directly comparable GAAP financial measure, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. GAAP measures may include the impact of such items as litigation reserves; restructuring charges; goodwill and intangible asset impairments; natural disasters; our store portfolio optimization review and strategic review and sale of Family Dollar, and the tax effect of all such items. Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.

DOLLAR TREE, INC.

Reconciliation of Non-GAAP Financial Measures - Continuing Operations

(In millions, except per share data)

(Unaudited)

13 Weeks Ended

26 Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Reconciliation of Adjusted Corporate Selling, General and Administrative Expenses, Exclusive of Transition Services Agreement Income, Net

Corporate selling, general and administrative expenses (GAAP)

$

130.8

$

147.6

$

272.6

$

289.4

Deduct: Strategic review costs

—

(4.3

)

—

(4.4

)

Adjusted corporate selling, general and administrative expenses, exclusive of transition services agreement income, net (Non-GAAP)

$

130.8

$

143.3

$

272.6

$

285.0

Adjusted corporate selling, general and administrative expenses, exclusive of transition services agreement income, net as a percentage of total revenue (Non-GAAP)

2.7

%

3.1

%

2.8

%

3.1

%

Reconciliation of Adjusted Corporate Selling, General and Administrative Expenses, Inclusive of Transition Services Agreement Income, Net

Corporate selling, general and administrative expenses (GAAP)

$

130.8

$

147.6

$

272.6

$

289.4

Deduct: Strategic review costs

—

(4.3

)

—

(4.4

)

Deduct: Transition services agreement income, net

(17.7

)

(8.0

)

(38.8

)

(8.0

)

Adjusted corporate selling, general and administrative expenses, inclusive of transition services agreement income, net (Non-GAAP)

$

113.1

$

135.3

$

233.8

$

277.0

Adjusted corporate selling, general and administrative expenses, inclusive of transition services agreement income, net as a percentage of total revenue (Non-GAAP)

2.3

%

3.0

%

2.4

%

3.0

%

Reconciliation of Adjusted Selling, General and Administrative Expenses, Exclusive of Transition Services Agreement Income, Net

Selling, general and administrative expenses (GAAP)

$

1,426.6

$

1,350.7

$

2,809.2

$

2,619.3

Deduct: Strategic review costs

—

(5.0

)

—

(8.7

)

Adjusted selling, general and administrative expenses, exclusive of transition services agreement income, net (Non-GAAP)

$

1,426.6

$

1,345.7

$

2,809.2

$

2,610.6

Adjusted selling, general and administrative expenses, exclusive of transition services agreement income, net as a percentage of total revenue (Non-GAAP)

29.2

%

29.4

%

28.5

%

28.3

%

Reconciliation of Adjusted Selling, General and Administrative Expenses, Inclusive of Transition Services Agreement Income, Net

Selling, general and administrative expenses (GAAP)

$

1,426.6

$

1,350.7

$

2,809.2

$

2,619.3

Deduct: Strategic review costs

—

(5.0

)

—

(8.7

)

Deduct: Transition services agreement income, net

(17.7

)

(8.0

)

(38.8

)

(8.0

)

Adjusted selling, general and administrative expenses, inclusive of transition services agreement income, net (Non-GAAP)

$

1,408.9

$

1,337.7

$

2,770.4

$

2,602.6

Adjusted selling, general and administrative expenses, inclusive of transition services agreement income, net as a percentage of total revenue (Non-GAAP)

28.8

%

29.3

%

28.1

%

28.3

%

Reconciliation of Adjusted Selling, General and Administrative Expenses, Exclusive of Corporate Selling, General and Administrative Expenses

Selling, general and administrative expenses (GAAP)

$

1,426.6

$

1,350.7

$

2,809.2

$

2,619.3

Deduct: Strategic review costs

—

(0.7

)

—

(4.3

)

Deduct: Corporate selling, general and administrative expenses

(130.8

)

(147.6

)

(272.6

)

(289.4

)

Adjusted selling, general and administrative expenses, exclusive of corporate selling, general and administrative expenses (Non-GAAP)

$

1,295.8

$

1,202.4

$

2,536.6

$

2,325.6

Adjusted selling, general and administrative expenses, exclusive of corporate selling, general and administrative expenses as a percentage of total revenue (Non-GAAP)

26.5

%

26.3

%

25.7

%

25.3

%

Reconciliation of Adjusted Operating Income

Operating income (GAAP)

$

690.1

$

231.0

$

1,163.4

$

615.1

Add: Strategic review costs

—

5.0

—

8.7

Adjusted operating income (Non-GAAP)

$

690.1

$

236.0

$

1,163.4

$

623.8

Adjusted operating income margin (Non-GAAP)

14.1

%

5.2

%

11.8

%

6.8

%

Reconciliation of Adjusted Income from Continuing Operations

Income from Continuing Operations (GAAP)

$

514.5

$

155.5

$

861.8

$

469.0

SG&A adjustments:

Add: Strategic review costs

—

5.0

—

8.7

Non-operating adjustment:

Deduct: Non-operating insurance gain

—

—

(5.2

)

(61.8

)

Provision for income tax adjustments

—

(1.3

)

1.3

13.0

Adjusted income from continuing operations (Non-GAAP)

$

514.5

$

159.2

$

857.9

$

428.9

Adjusted income from continuing operations as a percentage of total revenue (Non-GAAP)

10.5

%

3.5

%

8.7

%

4.7

%

Reconciliation of Adjusted Diluted Earnings Per Share - Continuing Operations

Diluted earnings per share - continuing operations (GAAP)

$

2.70

$

0.75

$

4.44

$

2.22

SG&A adjustments:

Add: Strategic review costs

—

0.02

—

0.04

Non-operating adjustment:

Deduct: Non-operating insurance gain

—

—

(0.03

)

(0.29

)

Provision for income tax adjustments

—

(0.01

)

0.01

0.06

Adjusted diluted earnings per share - continuing operations (Non-GAAP)

$

2.70

$

0.77

$

4.42

$

2.03

Reconciliation of Adjusted Effective Tax Rate

Effective tax rate (GAAP)

25.0

%

25.5

%

25.0

%

25.8

%

Add/Deduct: Tax impact of non-GAAP adjustments1

—

%

—

%

—

%

0.1

%

Adjusted effective tax rate (Non-GAAP)

25.0

%

25.5

%

25.0

%

25.9

%

1Relates to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant tax rates.

Amounts in tables above may not recalculate due to rounding.

DOLLAR TREE, INC.

Reconciliation of Non-GAAP Financial Measures

(In millions, except per share data)

(Unaudited)

13 Weeks Ended

26 Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Reconciliation of Net Cash Provided by Operating Activities of Continuing Operations to Free Cash Flow from Continuing Operations

Net cash provided by operating activities of continuing operations (GAAP)

$

921.5

$

260.7

$

1,565.5

$

639.2

Deduct:

Capital expenditures of continuing operations

(246.3

)

(245.1

)

(498.8

)

(493.9

)

Free cash flow from continuing operations (Non-GAAP)

$

675.2

$

15.6

$

1,066.7

$

145.3

Net cash provided by (used in) investing activities of continuing operations (GAAP) (c)

$

(246.9

)

$

177.7

$

(499.8

)

$

(21.2

)

Net cash used in financing activities (GAAP)

$

(622.9

)

$

(1,196.6

)

$

(723.8

)

$

(1,636.0

)

(c)

Net cash provided by (used in) investing activities includes capital expenditures, which is included in our computation of free cash flow.

More News From Dollar Tree, Inc.

Did Dollar Tree Inc (DLTR) Outperform Expectations with Q2 EPS of $2.70? GF Score: 79/100, 10.8% Undervalued Strong Sales Growth Offset by Ongoing Challenges

Dollar Tree Inc DLTR released its 8-K filing on August 27, 2026, revealing a second quarter marked by a 7.0% increase in total sales, reaching $4.89 billion. This release highlights both promising sales figures alongside notable challenges that have impacted the company's financial performance.

Founded in 1986, Dollar Tree operates almost 9,000 small-box discount stores across the United States and Canada, offering roughly 85% of its merchandise for $2 or less. Known for targeting value-conscious consumers, the retail chain features a diverse product mix, including consumables (49% of sales), variety items (45%), and seasonal goods (6%). In fiscal 2025, Dollar Tree generated over $19 billion in sales through its multi-price strategy, higher-margin discretionary assortments, and private-label products. In the recently reported quarter, the company faced challenges related to foot traffic and competition, leading to a 3.7% growth in comparable store net sales on the heels of a 6.5% rise from the previous year. Despite these headwinds, the company achieved a substantial increase in diluted earnings per share (EPS) of $2.70, significantly surpassing the prior year number and analyst expectations, thanks in part to a considerable $1.31 benefit from tariff refunds.

Financial Highlights and Efficiency ImprovementsDollar Tree's margins were positively influenced by a gross profit margin increase of 850 basis points to 42.9%. This improvement can largely be attributed to tariff refunds, which accounted for a significant portion of the increase. The remaining margin enhancement resulted from lower tariff rates and effective inventory control. Meanwhile, selling, general and administrative (SG&A) expenses saw a moderate decrease to 29.2% of total revenue, reflecting optimized operational efficiencies.Key financial metrics illustrate a robust performance model for Dollar Tree:

MetricQ2 2026Q2 2025ChangeNet Sales$4.89 billion$4.57 billion+7.0%Comparable Store Net Sales Growth3.7%6.5%-2.8%Operating Income$690 million$231 million+198.7%Diluted EPS$2.70$0.75+260.0% The increase in operating income margin, which expanded 900 basis points to 14.1%, indicates better operational health. This translates into improved profitability which is crucial for sustaining growth and navigating competitive retail landscapes.

What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip,” stated CEO Mike Creedon. "While we are proud of the progress we have made, we are even more focused on the opportunities ahead as we continue investing in the customer experience, strengthening the business, and driving profitable long-term growth."GuruFocus Valuation CheckBased on the latest analysis, Dollar Tree Inc DLTR appears to be undervalued at its current price of $132.18, with a GuruFocus (GF) Value pegged at $148.26, suggesting a potential upside of 10.8%. The firm’s GF Score of 79/100 signals that it outperforms many of its peers in certain key metrics, making it an appealing option in the defensive retail sector.The company's financial strength is rated at 6/10, which indicates a relatively acceptable level of stability for investors. Profitability and growth also receive a rank of 6/10 each, suggesting that while the company is performing satisfactorily, there are opportunities for enhancement, which could be instrumental in unlocking additional shareholder value over time. However, the predictability rating of only 1 star hints at potential volatility, which investors should consider.Insider activity shows a significant net selling figure of $248.5 million over the past year, with only $0.3 million in purchases. This volume of sales may warrant caution among investors, as it signals a potential lack of confidence from insiders regarding the immediate stock outlook.For a deeper dive, visit the Dollar Tree Inc stock page on GuruFocus.

Explore the complete 8-K earnings release (here) from Dollar Tree Inc for further details.

GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $148.26 (10.8% undervalued); its GF Score™ is 79/100; 7 gurus currently hold the stock, with 5 adding and 2 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Dollar Tree Inc DLTR research.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Dollar Tree, Inc. (NASDAQ:DLTR) reported second quarter fiscal 2026 results that beat Wall Street estimates for both revenue and earnings, while raising its full-year adjusted earnings outlook.

Net sales increased 7% year over year to $4.9 billion, topping analyst estimates of roughly $4.85 billion to $4.86 billion.

Comparable store sales rose 3.7%, driven by a 3.3% increase in average ticket and a 0.4% increase in traffic.

Diluted earnings per share came in at $2.70, including a $1.31 benefit from the net impact of tariff refunds. Operating income reached $690 million, with the operating margin expanding 900 basis points to 14.1%. Tariff refunds accounted for 650 basis points of the margin improvement.

Gross profit margin increased 850 basis points to 42.9%, including a 680-basis-point benefit from the net impact of tariff refunds. The company generated $675 million in free cash flow during the quarter and repurchased 5.6 million shares for $605 million.

“What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip,” Dollar Tree CEO Mike Creedon said in a statement.

“Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook.”

Dollar Tree raised its fiscal 2026 adjusted EPS outlook to $7.70 to $8.05, including an estimated $0.60 benefit from the net impact of tariff refunds. Full-year net sales are expected to range from $20.5 billion to $20.7 billion, based on comparable store sales growth of 3% to 4%.

For the third quarter, the company expects net sales of $5.0 billion to $5.1 billion and comparable store sales growth of 3% to 4%. Adjusted diluted EPS is expected to range from $0.80 to $0.95, including an approximately $0.50 impact from tariff refund reinvestments.

Shares of Dolar Tree were down about 9% in early trading following the results, as investors appeared to focus on the weaker-than-expected third-quarter earnings outlook and the extent to which tariff refunds contributed to the quarter's earnings and margin gains.

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Key Takeaways Dollar Tree's Q2 sales rose 7% to $4.89B, while adjusted EPS climbed 80.5% to $1.39.DLTR's gross margin expanded 850 bps to 42.9%, helped by tariff refunds and lower tariff rates.Dollar Tree raised FY26 adjusted EPS guidance to $7.70-$8.05 while keeping sales outlook unchanged. Dollar Tree, Inc. (DLTR - Free Report) posted solid second-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Both metrics increased year over year. Quarterly results benefited from solid comparable-store sales growth and improved margins, supported by the net impact of tariff refunds, lower tariff rates, favorable shrink and occupancy leverage.

Dollar Tree’s adjusted earnings per share (EPS) of $1.39, excluding the $1.31 per-share net tariff-refund benefit, rose 80.5% from 77 cents a year ago and beat the $1.13 consensus by 23.0%.

Shares of this Zacks Rank #3 (Hold) company have gained 17.5% in the past year compared with the industry’s 10.4% growth.

Image Source: Zacks Investment Research

DLTR’s Quarterly Performance: Key Metrics & InsightsNet sales increased 7% year over year to $4.89 billion and surpassed the $4.86 billion consensus by 0.7%. Comparable-store sales advanced 3.7%, driven by a 3.3% increase in average ticket and 0.4% traffic growth. Lower tariff rates, favorable shrink and occupancy leverage also supported profitability.

Profitability improved meaningfully as gross profit margin expanded 850 basis points year over year to 42.9%. About 680 basis points of that increase came from the net impact of tariff refunds, while the remaining improvement reflected lower tariff rates, favorable shrink and occupancy leverage, partly offset by sales mix.

Selling, general and administrative (SG&A) costs decreased 40 basis points to 29.2% of total revenues. Adjusted Operating income rose 198.7% to $690.1 million, with operating margin expanding 900 basis points to 14.1%.

DLTR’s Financial HealthDollar Tree ended the fiscal first quarter with cash and cash equivalents of $1.1 billion, no borrowings under its credit facilities and no commercial paper outstanding. It had a net long-term debt, excluding the current portion, of $2.93 billion and shareholders’ equity of $3.4 billion as of Aug. 1, 2026.

DLTR repurchased 5.6 million shares for $605 million during the quarter. Dollar Tree had $2.5 billion remaining under its share-repurchase authorization.

Dollar Tree’s Store UpdateIn the second quarter, DLTR opened 75 Dollar Tree stores and closed 21, ending the period with 9,436 locations across the United States and Canada. The company converted or added about 710 stores to its multi-price format, bringing the total to roughly 6,600.

Multi-price penetration increased about 400 basis points year over year to 17% of sales. Store standards also improved, with locations rated as "Opportunities" falling to 34% from 52% at the October 2025 Investor Day benchmark, while "Great" stores rose to 27% from 17%. Selling square footage increased 3.4% to 84.0 million square feet.

Q3 & FY26 Guidance by DLTRManagement increased its fiscal 2026 adjusted EPS outlook to $7.70-$8.05. The updated range includes an approximate 60-cent benefit from the net impact of tariff refunds. Dollar Tree continues to expect net sales of $20.5-$20.7 billion and comparable-store sales growth of 3%-4% for fiscal 2026. The retailer also plans about 400 new store openings and 75 closings for the year, alongside capital expenditures of $1.1-$1.2 billion.

For the third quarter of fiscal 2026, the company expects net sales of $5.0-$5.1 billion, supported by comparable-store sales growth of 3%-4%. Adjusted EPS is projected at 80-95 cents. The third-quarter earnings range includes an approximate 50-cent impact from tariff-refund reinvestments. For fiscal 2026, Dollar Tree expects about $275 million, or roughly 130 basis points, of net tariff-refund reinvestment impact on gross margin.

Stocks to ConsiderTarget Corporation (TGT - Free Report) offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Target’s current financial-year sales and EPS indicates growth of 4.6% and 37.7%, respectively, from the year-ago reported numbers. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.

Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States and currently holds a Zacks Rank #2 (Buy). FIVE delivered a trailing four-quarter earnings surprise of 70.1%, on average.

The Zacks Consensus Estimate for Five Below’s current fiscal-year sales and earnings calls for growth of 15.1% and 36.7%, respectively, from the year-ago reported numbers.

American Eagle Outfitters, Inc. (AEO - Free Report) operates as a multi-brand specialty retailer in the United States and internationally. At present, AEO carries a Zacks Rank of 2.

The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings indicates growth of 5.7% and 17.3%, respectively, from the year-ago figures. American Eagle delivered a trailing four-quarter earnings surprise of 48.5%, on average.

Dollar Tree continues to attract middle-income and higher-income shoppers as consumers deal with inflation. The discount retailer reported earnings Thursday (Aug. 27) showing its total sales for the second quarter climbing 7%.

Dollar Tree, Inc. (DLTR) Q2 2027 Earnings Call August 27, 2026 8:00 AM EDT

Company Participants

Daniel Delrosario - Senior VP of Investor Relations & Treasurer
Michael Creedon - CEO & Director
Stewart Glendinning - Chief Financial Officer

Conference Call Participants

Matthew Boss - JPMorgan Chase & Co, Research Division
Seth Sigman - Barclays Bank PLC, Research Division
Rupesh Parikh - Oppenheimer & Co. Inc., Research Division
Robert Griffin - Raymond James & Associates, Inc., Research Division
Michael Lasser - UBS Investment Bank, Research Division
Edward Kelly - Wells Fargo Securities, LLC, Research Division

Presentation

Operator

Greetings, and welcome to the Dollar Tree Q2 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. [Operator Instructions] It's now my pleasure to turn the call over to Daniel Delrosario, Senior Vice President, Investor Relations and Treasurer.

Daniel, please go ahead.

Daniel Delrosario
Senior VP of Investor Relations & Treasurer

Thank you, operator. Good morning, everyone, and thank you for joining us today to discuss Dollar Tree's second quarter fiscal 2026 results. With me today are Dollar Tree's CEO, Mike Creedon; and CFO, Stewart Glendinning.

Before we begin, I would like to remind everyone that some of the remarks that we will make today about the company's expectations, plans and future prospects are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties, which could cause actual results to differ materially from those contemplated by our forward-looking statements.

For information on the risks and uncertainties that could affect our actual results, please see the Risk Factors, Business and Management's Discussion and Analysis of Financial Condition and Results of Operations section in our annual report on Form 10-K filed on March 16, 2026, our most recent press release on Form 8-K and other

Dollar Tree (NASDAQ:DLTR) reported second-quarter fiscal 2026 results that exceeded its outlook, supported by higher comparable sales, improved traffic trends, stronger store execution and a $383 million receipt of tariff refunds.

Net sales rose 7% to $4.9 billion during the quarter. Comparable-store sales increased 3.7%, above the company’s expectations, as a 3.3% increase in average ticket combined with a 0.4% increase in customer traffic. CEO Mike Creedon said traffic turned positive earlier than management had anticipated and improved as the quarter progressed.

“The second quarter represented another period of progress for Dollar Tree,” Creedon said. “Improved execution across the business drove financial results above the high end of our outlook range.” Sales Growth and Store Execution Management attributed the sales performance to a broader assortment, greater use of multiple price points, marketing efforts and improvements in store conditions. Multi-price penetration increased about 400 basis points from a year earlier to 17% of total sales.

Consumables produced a 5.8% comparable-sales increase, while discretionary merchandise generated a 1.6% increase. Creedon said personal care and toys were notable performers, while sales increased across income cohorts, with gains skewing toward middle- and higher-income households.

The company estimated that shortages of helium reduced sales by about $15 million, or roughly 30 basis points of comparable-sales growth, during the period. The supply constraint was concentrated in Dollar Tree’s party business and also affected purchases tied to celebrations and events. Management said it is not assuming a near-term recovery in helium supply in its outlook.

Dollar Tree also continued work on its G.O.L.D. store standards, designed to improve in-stock levels, shopability, store recovery and planning. Creedon said the share of stores categorized as opportunities for improvement has fallen to about one-third of the nearly 9,500-store fleet, from approximately one-half at the company’s investor day last October.

While describing the progress as encouraging, Creedon said the company is focused on raising standards across the entire fleet and making improvements durable. He said favorable shrink results during the quarter reflected stronger store operations, inventory control and merchandise protection.

Tariff Refunds Lift Earnings, Fund Investments Adjusted diluted earnings per share were $2.70, including $1.31 related to the combined effects of tariff refunds, reinvestment of those proceeds and certain duties on aluminum pans and paper plates. Excluding the net tariff-related impact, CFO Stewart Glendinning said underlying adjusted EPS was $1.39, above the company’s prior outlook of $1.00 to $1.15.

Dollar Tree received $383 million in tariff refund proceeds during the quarter. Of that amount, $369 million benefited gross profit and $14 million was recorded in other income. Gross profit was also reduced by $13 million of certain duties.

The company reinvested $37 million of the proceeds during the second quarter, including $22 million in cost of sales and $15 million in selling, general and administrative expenses. Those investments included its 40th anniversary promotion, marketing initiatives and store-condition improvements.

For the full year, Dollar Tree expects to reinvest approximately $210 million of tariff refund proceeds. Management said it did not assume an immediate return from the incremental spending, citing a competitive environment in which retailers are investing in price and the longer-term nature of investments in store standards and customer messaging.

Gross margin expanded 850 basis points to 42.9%, including a 680-basis-point benefit from the net effect of tariff refunds, reinvestments and certain duties. Beyond tariffs, Glendinning cited favorable shrink, better-than-expected freight costs and leverage on occupancy and distribution expenses from higher sales. Adjusted operating margin increased 890 basis points to 14.1%.

Cash Flow, Buybacks and Updated Outlook Inventory declined 9% from the prior year while sales rose 7%. The company ended the quarter with $1.06 billion in cash and no commercial paper outstanding. Operating cash flow totaled $922 million, while capital expenditures were $246 million, resulting in free cash flow of $675 million.

Dollar Tree repurchased 5.6 million shares for $605 million during the quarter. Over the past 12 months, the company said it has reduced its share count by about 8% and returned more than $1.8 billion to investors through share repurchases.

Full-year net sales are expected to range from $20.5 billion to $20.7 billion. Comparable-store sales are projected to increase 3% to 4% for the year. Adjusted diluted EPS is forecast at $7.70 to $8.05, including an estimated $0.60 net benefit from tariff refunds. Third-quarter net sales are expected to be $5.0 billion to $5.1 billion, with comparable-sales growth of 3% to 4%. Third-quarter adjusted diluted EPS is forecast at $0.80 to $0.95, including an approximately $0.50 negative effect from tariff-refund reinvestments. Glendinning said the company expects gross margin to be roughly flat in the third quarter excluding tariff-related items, benefiting from a comparison with last year’s inventory write-off, before declining in the fourth quarter. He cited higher fuel-related freight costs, broad-based merchandise cost inflation and a greater mix of lower-margin consumables.

Management said lower ongoing tariff rates than previously assumed provide some benefit in the second half, but that benefit is being absorbed by inflation, elevated fuel costs and efforts to maintain value for customers rather than pass costs through to shoppers.

Dollar Tree also said it will commit $40 million through its Dollar Tree Impact Fund to support local organizations as part of its 40th anniversary. Creedon said the company intends to build on its operating momentum in the second half while continuing to invest in assortment, pricing, marketing and store execution.

About Dollar Tree (NASDAQ:DLTR) Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company’s stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

On August 24, 2026, Dollar Tree Inc
DLTR +4.01% 79

shares rose 4.0% to $136.75, reflecting a strong momentum as the stock is currently trading within its 52-week range of $84.71 to $142.40. This positive performance aligns with a year-to-date increase of 11.2% and a one-year gain of 20.7%.

GF Value™ verdict: Dollar Tree is currently trading at $136.75, which is 7.7% below the GF Value™ estimate of $148.15, indicating it is undervalued.GF Score™: With a score of 79/100, Dollar Tree is considered above average, suggesting solid fundamentals.Notable signal: Insider activity shows significant net selling over the past 12 months, with $248.5M net sold, raising concerns about management's confidence in the stock.Is DLTR Overvalued or Undervalued?The current price of Dollar Tree Inc. at $136.75 is 7.7% below the GF Value™ estimate of $148.15. This undervaluation suggests a potential opportunity for investors, as the share price has room to rise based on GuruFocus' proprietary intrinsic value assessment. GF Value™ is derived from analyzing historical trading multiples, past business growth, and future performance estimates, providing a comprehensive view of the stock's value. The fact that DLTR is trading below this estimate indicates a margin of safety for potential buyers, although caution is warranted given the significant insider selling.

Given the GF Valuation label of "Fairly Valued," investors may want to consider the implications of the underlying financial data and market conditions before making any decisions. While the price may appear attractive, the net selling by insiders could serve as a warning signal regarding future performance or company outlook.

How Does DLTR's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)21.4x21.1x (5-Year Median)Forward P/E19.5xN/AThe current P/E ratio of 21.4x is slightly above the 5-year median of 21.1x, indicating that Dollar Tree is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that while the stock is undervalued based on the intrinsic value estimate, it is slightly overvalued relative to its historical earnings multiples.

What Does DLTR's GF Score™ Tell Us?The GF Score™ is a composite score that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum based on various metrics. Dollar Tree's score of 79/100 indicates that it possesses strong fundamentals with certain areas for improvement. The strongest sub-rank is the Valuation Rank at 10/10, suggesting that the stock is favorably valued relative to its peers. However, the Financial Strength, Profitability, and Growth Ranks are all at 6/10, showing that while the company is stable, there is room for enhanced performance.

MetricRatingGF Score™79Financial Strength6/10Profitability6/10Growth6/10Valuation10/10Momentum7/10Overall, the scores indicate that Dollar Tree is fairly well-rounded, with a particularly strong valuation metric. However, the financial strength and profitability metrics suggest that there is potential for improvement in operational performance, which could enhance the overall investment attractiveness.

What Are Gurus and Insiders Doing with DLTR?Currently, seven gurus hold positions in Dollar Tree, with five increasing their stakes and two reducing their holdings in recent quarters. This mixed sentiment reflects a cautious optimism among institutional investors. However, the insider activity is concerning, with a total of $248.5M net sold over the past year, compared to only $0.3M purchased. This significant net selling by insiders may indicate a lack of confidence from management regarding the company's future performance or market conditions.

This insider activity is a critical aspect to consider, particularly as it contrasts with the overall positive sentiment reflected in the GF Score™ and the undervaluation per GF Value™. Investors should weigh the implications of this insider selling against the broader fundamentals and valuation metrics before making any decisions.

What This Means for InvestorsBased on the current analysis, Dollar Tree Inc appears to be undervalued according to the GF Value™, presenting a potential investment opportunity. However, the significant insider selling raises questions about management's confidence, suggesting that investors should proceed with caution. The solid GF Score™ and favorable valuation metrics indicate that while the stock is attractively priced, considerations regarding insider sentiment and overall market conditions are essential. For a more in-depth look at Dollar Tree's fundamentals and valuation metrics, visit the Dollar Tree Inc
DLTR +4.01% 79

stock page.

Frequently Asked QuestionsWhat is DLTR's GF Score™?

Dollar Tree's GF Score™ is 79/100, indicating that the company has strong fundamentals and is above average in terms of its overall financial health and performance metrics.

Is DLTR overvalued or undervalued?

According to GF Value™, DLTR is currently undervalued, trading 7.7% below its intrinsic value estimate of $148.15.

What is DLTR's P/E ratio?

Dollar Tree's P/E ratio is 21.4x, which is slightly above its 5-year median of 21.1x, indicating that the stock is trading at a premium compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Dollar Tree is set to report Q2 results with expected revenue and earnings growth from a year ago.DLTR's sales may benefit from category strength, market share gains and store portfolio optimization.Tariffs, freight costs and higher operating expenses remain key pressures ahead of the Q2 results. Dollar Tree, Inc. (DLTR - Free Report) is likely to register growth in its top and bottom lines when it reports second-quarter fiscal 2026 results on Aug. 27, before market open. The Zacks Consensus Estimate for revenues is pegged at $4.85 billion, indicating growth of 6.3% from the prior-year quarter’s reported figure.

The consensus estimate for earnings is pegged at $1.11 per share, suggesting an increase of 44.2% from the year-ago period’s reported figure. The consensus mark has been unchanged in the past 30 days.

DLTR has a trailing four-quarter earnings surprise of 32.1%, on average. In the last reported quarter, the Chesapeake, VA-based company’s earnings surpassed the Zacks Consensus Estimate by 13.7%.

Trends to Watch Before Dollar Tree’s Q2 ReleaseDLTR’s fiscal second-quarter performance is expected to have benefited from growth across categories and market share gains. Dollar Tree’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings appears encouraging. Such factors have been driving the company's comps for a while now.

The company is expected to have witnessed a strong performance, driven by sales growth across categories and market share gains. Dollar Tree has made significant progress over the years in optimizing its store portfolio through store openings, renovations, re-banners and closings. The expanded multi-price assortment, continued strength from higher-income customers, and a healthy balance between traffic and ticket continue to support comps growth.

Strong performance from store conversions, openings, improved distribution center flow and the early traction of the Uber Eats partnership should have provided incremental support to second-quarter fiscal 2026 revenues.

For the second quarter of fiscal 2026, the company projects net sales from continuing operations between $4.8 billion and $4.9 billion, supported by expected comparable-store sales growth of 2.5-3.5%. Adjusted earnings per share are anticipated to be $1-$1.15.

Our model projects year-over-year sales growth of 6.2% and adjusted earnings per share of $1.10 for the second-quarter fiscal 2026.

However, Dollar Tree’s second-quarter fiscal 2026 results are expected to reflect the environment of uncertainty that management emphasized on the latest earnings call. Despite strong discretionary and consumable spending, management has taken a cautious stance, given the volatile macroeconomic backdrop and rising financial pressures on lower-income consumers, who continue to face elevated living costs across categories.

Dollar Tree has been witnessing pressure on SG&A expenses in recent quarters due to higher operating costs and strategic business investments. Another major factor weighing on the company’s performance is likely to have been the timing of tariff impacts. Tariff-related pressures have been leading to higher costs and remain concerning.

On the margin front, our model predicts the gross margin to be flat year over year at 34.4% in the fiscal second quarter. Benefits from improved markdowns and merchandising execution are likely to have been offset by tariffs and higher freight costs.

Dollar Tree’s Zacks Model FindingsOur proven model does not predict an earnings beat for Dollar Tree this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Dollar Tree currently has an Earnings ESP of 0.00% and a Zacks Rank of 2.

DLTR’s Stock Price & Valuation PictureFrom a valuation perspective, Dollar Tree shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 17.36X, below the five-year median of 17.74X and the Retail-Discount Stores industry’s average of 30.2X, the company’s shares offer compelling value for investors seeking exposure to the sector.

Image Source: Zacks Investment Research

Recent market movements show that Dollar Tree’s shares have rallied 35.2% in the past three months against the industry’s 2.4% decline.

Image Source: Zacks Investment Research

Stocks With Favorable CombinationHere are some companies, which, according to our model, have the right combination of elements to post an earnings beat this season:

Victoria's Secret (VSXY - Free Report) has an Earnings ESP of +5.20% and currently sports a Zacks Rank of 1. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for VSXY’s quarterly revenues is pegged at $1.6 billion, which indicates an 11.2% rise from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for VXSY’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate indicates a significant 133% rise from the year-ago quarter’s actual. VSXY has an average trailing four-quarter earnings surprise of 81.9%.

Five Below Inc. (FIVE - Free Report) currently has an Earnings ESP of +20.80% and a Zacks Rank of 2. The company is likely to register growth in the top and bottom lines when it reports second-quarter fiscal 2026 results. The consensus mark for FIVE’s quarterly revenues is pegged at $1.2 billion, which indicates a 17.9% rise from the figure reported in the prior-year quarter.

The consensus mark for Five Below’s quarterly earnings has been unchanged in the past 30 days at $1.28 per share. The consensus estimate indicates an increase of 58% from the year-ago quarter’s actual. FIVE has an average trailing four-quarter earnings surprise of 70.1%.

Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +0.41% and a Zacks Rank of 3. ULTA is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.97 billion, which indicates 6.5% growth from the prior-year quarter’s actual.

The consensus estimate for earnings has moved up 0.3% in the past seven days to $6.19 per share, which implies 7.1% growth from the year-ago quarter's actual. ULTA has an average trailing four-quarter earnings surprise of 10%.

BlackRock Inc. purchased a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 15,926,906 shares of the company’s stock, valued at approximately $1,926,359,000. BlackRock Inc. owned 8.29% of Dollar Tree as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. State Street Corp increased its stake in Dollar Tree by 3.5% in the 3rd quarter. State Street Corp now owns 9,421,856 shares of the company’s stock valued at $889,141,000 after buying an additional 319,938 shares during the period. Alliancebernstein L.P. boosted its stake in shares of Dollar Tree by 176.9% during the 2nd quarter. Alliancebernstein L.P. now owns 3,746,222 shares of the company’s stock valued at $371,026,000 after buying an additional 2,393,172 shares during the period. Invesco Ltd. boosted its stake in shares of Dollar Tree by 1.5% during the 4th quarter. Invesco Ltd. now owns 2,719,303 shares of the company’s stock valued at $334,501,000 after buying an additional 39,506 shares during the period. Norges Bank purchased a new position in shares of Dollar Tree during the 4th quarter valued at $260,858,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Dollar Tree by 4.7% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,821,852 shares of the company’s stock valued at $224,106,000 after acquiring an additional 81,695 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

Dollar Tree Stock Up 1.0% Dollar Tree stock opened at $131.84 on Thursday. The company has a current ratio of 1.16, a quick ratio of 0.39 and a debt-to-equity ratio of 0.84. Dollar Tree, Inc. has a 1-year low of $84.71 and a 1-year high of $142.40. The firm’s fifty day simple moving average is $123.31 and its 200-day simple moving average is $114.18. The company has a market capitalization of $25.34 billion, a P/E ratio of 20.60, a P/E/G ratio of 1.49 and a beta of 0.64.

Dollar Tree (NASDAQ:DLTR – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The company reported $1.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.53 by $0.21. The firm had revenue of $4.98 billion during the quarter, compared to analysts’ expectations of $4.96 billion. Dollar Tree had a net margin of 6.51% and a return on equity of 35.19%. Dollar Tree’s revenue for the quarter was up 7.2% on a year-over-year basis. During the same period in the prior year, the company posted $1.26 earnings per share. Dollar Tree has set its Q2 2026 guidance at 1.000-1.150 EPS. Sell-side analysts forecast that Dollar Tree, Inc. will post 7 earnings per share for the current fiscal year. Dollar Tree declared that its Board of Directors has approved a share buyback plan on Thursday, July 2nd that authorizes the company to buyback $2.50 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 10.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades Several brokerages recently issued reports on DLTR. The Goldman Sachs Group lowered Dollar Tree from a “neutral” rating to a “hold” rating in a report on Wednesday, July 8th. Morgan Stanley boosted their target price on Dollar Tree from $126.00 to $130.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. Evercore raised Dollar Tree from a “hold” rating to an “outperform” rating in a research report on Wednesday, July 8th. Bank of America reaffirmed an “underperform” rating on shares of Dollar Tree in a research note on Thursday, May 28th. Finally, Freedom Capital lowered Dollar Tree from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 28th. Ten investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $123.41.

Get Our Latest Research Report on DLTR

Dollar Tree Profile (Free Report)

Dollar Tree, Inc is a North American discount retailer that operates a portfolio of value-oriented store banners, primarily Dollar Tree and Family Dollar. The company’s stores offer a broad assortment of everyday items at low price points, including household essentials, food and snacks, health and beauty products, cleaning supplies, seasonal and party goods, home décor, and basic apparel. Dollar Tree’s merchandising strategy emphasizes high-turnover branded and private-label merchandise tailored to budget-conscious consumers, with Family Dollar complementing the chain by offering a wider range of price points and assortment depth in smaller-format neighborhood locations.

Founded in 1986 and headquartered in Chesapeake, Virginia, Dollar Tree has grown through both organic store openings and acquisitions.

Featured Articles Five stocks we like better than Dollar Tree Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding DLTR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dollar Tree, Inc. (NASDAQ:DLTR – Free Report).

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CHESAPEAKE, Va.--(BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR), will report financial results for the second quarter of fiscal year 2026 ended on August 1, 2026, before the stock market opens on Thursday, August 27, 2026, followed by a conference call for investors and analysts at 8 a.m. ET. Chief Executive Officer Mike Creedon and Chief Financial Officer Stewart Glendinning will discuss the company’s results and lead a question-and-answer session.

WHEN:

  Thursday, August 27, 2026

8 a.m. Eastern Time

  DIAL-IN:

  Please dial (877) 407-3943 or (201) 689-8855 at least 10 minutes prior to the scheduled start time.

  WEBCAST:

  Available on the investor relations section of the company's website at

https://corporate.dollartree.com/investors/news-events/ir-calendar.

  REPLAY:

  A recorded version of the call will be accessible approximately three hours after the completion of the call by dialing (877) 660-6853 or (201) 612-7415 and entering the passcode 13762117. The replay will be available for seven days after the call.

  CONTACT:

  Dollar Tree, Inc.

Daniel Delrosario

Senior Vice President, Investor Relations & Treasurer

[email protected]

More News From Dollar Tree, Inc.

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The Retail – Discount Stores industry remains a strong pillar of the broader retail sector, benefiting from its focus on value, efficiency and consumer accessibility. Even as households face ongoing inflationary pressures, elevated borrowing costs and shifting spending patterns, discount retailers continue to attract steady foot traffic by offering competitive pricing, compelling assortments and convenient store formats. The growing preference for value is no longer limited to lower-income shoppers, as middle- and higher-income consumers are also trading down on everyday essentials and discretionary products to stretch their budgets. The ability to blend affordability with quality has helped industry participants capture demand across income segments. Meanwhile, strategic investments in supply-chain efficiency, store remodels, digital capabilities and technology are improving productivity and enhancing the customer experience.

Industry players are also sharpening their digital capabilities by integrating e-commerce with flexible fulfillment models, including buy-online-pickup-in-store and curbside services. Loyalty programs, data-driven merchandising and disciplined inventory management remain key growth levers. Retailers are also using artificial intelligence to improve demand forecasting and pricing, while expanding private-label offerings to support margins. As shoppers continue to seek value without compromising on convenience, companies with strong brand equity, scale advantages and operational discipline are well-positioned to thrive. Against this backdrop, The TJX Companies, Inc. (TJX - Free Report) , Ross Stores, Inc. (ROST - Free Report) , Target Corporation (TGT - Free Report) , and Dollar Tree, Inc. (DLTR - Free Report) stand out as prominent players in the Retail-Discount Stores industry.

About the Industry The Retail – Discount Stores industry is an important part of the broader retail sector, serving consumers who seek affordable, value-for-money products. Industry participants offer a wide assortment of merchandise, including groceries, household goods, apparel, electronics, cleaning supplies and pet products, at prices generally lower than traditional retailers. Their business models emphasize cost-efficient operations, bulk purchasing, disciplined inventory management and streamlined supply chains to maintain competitive pricing. Discount retailers typically carry a combination of national and private-label brands, helping them meet the needs of a broad customer base. The industry has historically remained resilient during economic slowdowns, as consumers become more price-conscious and increasingly prioritize value-oriented shopping.

4 Key Industry Trends to Watch Continued Trade-Down Traffic Across Income Brackets: Persistent inflation, elevated interest rates and ongoing economic uncertainty continue to reshape consumer spending habits in the United States. Even as inflation has moderated from its peak, households remain focused on stretching their budgets, prompting greater demand for everyday essentials and low-priced merchandise. Discount retailers are well positioned to benefit from this behavioral shift, as shoppers increasingly prioritize affordability over brand loyalty. The industry is likely to witness sustained traffic gains from both lower-income consumers and higher-income households trading down, supporting resilient sales growth despite a challenging macroeconomic backdrop.

Private Labels and Consumables Support Growth: Discount retailers are expanding their private-label portfolios and increasing their focus on consumable categories to strengthen customer loyalty and improve profitability. Groceries, health and beauty products, cleaning supplies and other everyday essentials generate recurring store visits and provide a stable revenue base, even during periods of economic uncertainty. At the same time, private-label products offer consumers quality alternatives at lower prices while helping retailers earn higher margins than many national brands. This combination of value and profitability is expected to remain a key competitive advantage for the industry.

Omnichannel Capabilities Enhance Customer Reach: As shopping behaviors evolve, discount retailers are increasingly connecting their physical and digital channels to improve convenience and retain customers. Companies are investing in digital platforms and flexible fulfillment options, including same-day delivery, buy-online-pickup-in-store and contactless payments. AI-powered demand forecasting, personalized promotions and mobile applications are also helping retailers improve customer engagement and respond more quickly to changing demand. At the same time, store renovations, mobile point-of-sale tools and faster checkout processes are enhancing the in-store experience, allowing retailers to expand their reach while keeping physical locations relevant and productive.

Margin Discipline Key to Defending Profitability: Competition in the discount retail space remains intense, with companies vying for market share through competitive pricing, broader assortments and faster product cycles. The growing influence of e-commerce has also increased the need for digital investments and efficient delivery networks. Although these initiatives support sales growth and customer convenience, they bring higher fulfillment, marketing and store-related expenses that can pressure margins. Elevated labor, freight and sourcing costs are also prompting retailers to emphasize operational efficiency. Supply-chain automation, distribution optimization and disciplined inventory management should remain critical to controlling costs, improving product availability and protecting profitability.

Zacks Industry Rank Indicates Bright Prospects The Zacks Retail - Discount Stores industry is housed within the broader Zacks Retail - Wholesale sector. The industry currently carries a Zacks Industry Rank #33, which places it in the top 13% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates encouraging near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.

Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimate has risen 6.2%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry vs. Broader Market The Zacks Retail - Discount Stores industry has outperformed the broader Retail - Wholesale sector but underperformed the Zacks S&P 500 composite over the past year.

Stocks in this industry have collectively advanced 17.6%. Meanwhile, the Zacks Retail - Wholesale sector has risen 2.6%, and the S&P 500 has jumped 19.9% in the same time frame.

One-Year Price Performance

Industry's Current Valuation Based on a forward 12-month price-to-earnings (P/E) ratio, which is commonly used for valuing retail stocks, the industry is currently trading at 32.05 compared with the S&P 500’s 19.83 and the sector’s 22.45.

Over the past five years, the industry has traded as high as 33.97X and as low as 21.19X, with the median being 27.32X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

4 Retail Discount Store Stocks to Keep a Close Eye On TJX Companies: TJX Companies continues to strengthen its leadership in the off-price retail space through its compelling value proposition, broad customer appeal and differentiated treasure-hunt shopping experience. Management remains confident in the company's ability to gain market share, supported by abundant branded merchandise availability, a deep vendor network, targeted marketing initiatives and continued investments in store modernization, international expansion and talent development. The company's flexible business model, disciplined execution and growing presence across global markets reinforce its competitive positioning while creating multiple long-term growth opportunities.

The Zacks Consensus Estimate for TJX Companies’ current financial-year sales and EPS implies growth of 5.9% and 9.3%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 5.5% rise in sales and 9.7% growth in earnings. TJX has a trailing four-quarter earnings surprise of 8.8%, on average. Shares of this Zacks Rank #2 (Buy) company have advanced 26.4% over the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. .

Price and Consensus: TJX

Ross Stores: Ross Stores is strengthening its competitive position through disciplined execution, compelling branded assortments and a customer-focused transformation strategy that is driving broad-based traffic growth and market share gains. The company continues to enhance its merchandising, marketing and store experience while expanding its footprint and leveraging strong vendor relationships to secure attractive off-price merchandise. Management also sees significant runway from new customer acquisition, particularly among younger shoppers, supported by modernized branding, targeted marketing and ongoing operational improvements.

The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS implies growth of 10.2% and 17.1%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 6% rise in sales and 9.6% growth in earnings. ROST has a trailing four-quarter earnings surprise of 10.2%, on average. Shares of this Zacks Rank #2 company have soared 84.3% over the past year.

Price and Consensus: ROST

Target: Target’s broad merchandise portfolio, strong brand recognition and combination of style, convenience and value provide a solid foundation for renewed growth. Management is sharpening category leadership through product innovation, exclusive partnerships and assortment upgrades, while investments in stores, digital fulfillment, supply-chain reliability and guest service are improving execution. Encouraging customer response across both physical and digital channels suggests that these strategic actions are gaining traction. With its differentiated retail model and a clear multiyear transformation plan, Target is well positioned to strengthen market share and deliver sustained success.

The Zacks Consensus Estimate for Target’s current financial-year sales and EPS implies growth of 3.7% and 9.9%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 2.8% rise in sales and 6.5% growth in earnings. TGT has a trailing four-quarter negative earnings surprise of 8.2%, on average. Shares of this Zacks Rank #2 company have rallied 45.7% over the past year.

Price and Consensus: TGT

Dollar Tree: Dollar Tree is strengthening its competitive position by executing a focused transformation centered on value, convenience and an expanded multi-price assortment that is driving broader customer appeal and deeper everyday relevance. The company continues to enhance its merchandising, store standards, targeted marketing and operational execution while leveraging data and AI to better engage customers and optimize performance. Management also sees meaningful opportunities to capture market share as value-conscious shoppers across income levels increasingly turn to the brand, supported by disciplined investments in assortment, store refreshes and supply-chain capabilities.

The Zacks Consensus Estimate for Dollar Tree’s current financial-year sales and EPS implies growth of 6.5% and 21.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 6.2% rise in sales and 10.3% growth in earnings. DLTR has a trailing four-quarter negative earnings surprise of 32.1%, on average. Shares of this Zacks Rank #2 company have jumped 12% over the past year.

Price and Consensus: DLTR

In 1982, the U.S. Securities and Exchange Commission (SEC) adopted Rule 10b-18, providing companies with a safe harbor for qualifying share repurchases. Since then, publicly traded companies have been repurchasing their own shares in order to consolidate ownership and boost earnings per share (EPS). But for some firms, the timing of their stock buybacks indicates that management views the current share price as undervalued.

This year, companies are on a record-setting pace.

Get Dollar Tree alerts:

According to Bloomberg, during the first four months of 2026, S&P 500 companies announced plans to repurchase $665 billion worth of shares, the highest total ever recorded in that same timeframe. And, based on historical rates, analysts now forecast authorized repurchases to reach $1.55 trillion for the full year.

Participating in that shopping spree are three companies that have recently announced a collective $24.5 billion in new, replenished, or increased share repurchase plans.

Dollar Tree: $2.5 Billion Buyback Adds Fuel to TurnaroundDollar Tree Today

$125.94 0.00 (0.00%)

As of 07/17/2026 04:00 PM Eastern

52-Week Range$84.71▼

$142.40P/E Ratio19.68

Price Target$122.68

On July 2, the board of directors for Dollar Tree NASDAQ: DLTR replenished its share repurchase authorization to the tune of $2.5 billion.

The board approved the authorization the previous day, and the amount represented approximately 10.7% of the company’s more than 192 million shares outstanding at the time

Although Dollar Tree’s current authorization doesn’t have an expiration date, the company had already been active in the market, repurchasing $500 million of stock in June under its previous authorization.

When the calendar turned to July, shares were down 5.13% year to date (YTD), presenting an opportunity as the stock’s momentum had recently shifted.

Since its YTD low of $86.80 on May 13, DLTR has gained nearly 48% and now trades around 10% lower than its 52-week high of $142.40. The current rally can be partly attributed to July 8 upgrades from Raymond James (Outperform rating) and Goldman Sachs (from Sell to Neutral), as well as upwardly revised full-year guidance, with forecasted EPS increasing to a range of $6.70 to $7.10.

With a low-volatility beta of 0.65, a TradeSmith financial health indicator that has been green for about a month, and more than 97% institutional ownership, the discount retailer’s buyback aligns with Wall Street’s improving sentiment. After posting EPS beats for five consecutive quarters and six out of the last seven, Dollar Tree is expected to report Q2 earnings on Sept. 2.

Morgan Stanley: $20 Billion Buyback Reinforces Earnings MomentumMorgan Stanley Today

MS

Morgan Stanley

$215.27 -0.23 (-0.11%)

As of 07/17/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$136.17▼

$232.25Dividend Yield1.86%

P/E Ratio17.40

Price Target$220.80

Ahead of its record-breaking Q2 earnings report on July 15, Morgan Stanley NYSE: MS reauthorized a massive $20 billion buyback—good for 5.6% of its shares outstanding—on June 24.

The company’s current multi-year repurchase authorization doesn’t have an expiration date, and shares have ticked up slightly since the most recent buyback.

Q2 marks the second consecutive quarter the investment bank announced all-time high EPS and revenue, with the firm attributing its recent success to a 69% year-over-year jump in equity trading, an increase in investment banking deals and hitting a $10 trillion milestone in total client assets under management, including a record $148 billion in net new assets.

In Q2, the company spent $1.5 billion on its own shares, and since its YTD low on March 12, shares are up nearly 48%. The stock carries a consensus Moderate Buy rating, while current short interest is just 1.12% of the float.

Accenture: $2 Billion Bet That Its Stock Is UndervaluedAccenture Today

$143.56 -0.01 (-0.01%)

As of 07/17/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$118.15▼

$291.09Dividend Yield4.54%

P/E Ratio11.47

Price Target$192.96

On June 23, global professional services and consulting firm Accenture NYSE: ACN announced a $2 billion increase to its fiscal 2026 share repurchase program that accounts for 2.4% of its shares outstanding.

From management’s perspective, the authorization comes at an opportune time: Shares of ACN are down around 46% YTD, and nearly 53% off of their 52-week high.

That $2 billion repurchase plan was an increase that brought its 2026 authorization to $7.5 billion.

The company has until Aug. 31 to exhaust those funds, with CEO Julie Sweet saying that “Accenture is at the center of AI-driven reinvention, and we do not believe our current share price reflects that position or the strength of our business fundamentals.”

Still, the firm faces an uphill battle in getting its stock near its 52-week high. In Accenture’s Q3, revenue growth slowed to 5.59%, with operating cash flow regressing to a quarter-over-quarter loss of 0.82%.

Meanwhile, the company’s financial health, according to TradeSmith, has been in the red for more than five months. But the stock’s consensus price target suggests around 33% potential upside from current prices. Over the past year, institutional inflows of more than $25 billion (compared to $13.25 billion in outflows) demonstrate that the smart money also sees a buy-low opportunity.

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Diane King Hall turns to Wednesday's early movers by highlighting a pair of upgrades in Dollar Tree (DLTR), though neither signal a concrete bullish stance. The same applies to a Goldman Sachs upgrade in RH (RH).

Dollar Tree, Inc. (NASDAQ: DLTR) (the “Company”) today announced that its Board of Directors has replenished the Company's share repurchase authorization t

On June 26, 2026, Dollar Tree Inc DLTR shares rose 4.8% today, bringing the current price to $123.87. The stock has experienced significant volatility over the past year, with a 52-week range of $84.71 to $142.40.

GF Value™ verdict: Current price at $123.87 is 15.2% below GF Value™ of $145.99.GF Score™ of 76/100 indicates the stock is above average in terms of overall quality.Most notable signal: Insiders sold $248.3M in the last 3 months, indicating potential caution among executives. Is DLTR Overvalued or Undervalued? Dollar Tree Inc DLTR is currently trading at $123.87, which is 15.2% below the GF Value™ estimate of $145.99. This suggests that the stock may be undervalued at its current price, providing a potential opportunity for investors. The GF Valuation label indicates that the stock is "Modestly Undervalued," which suggests there may be some margin of safety for those considering an investment. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

However, it is important to consider the broader market context and the various indicators related to the company's performance. Notably, the insider selling of $248.3 million in the past three months may raise questions about the company's near-term prospects. This activity could imply that those closest to the business may have reservations about the stock's short-term performance.

How Does DLTR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.4x 21.1x (5-Year Median) Forward P/E 17.8x N/A The current P/E ratio of 19.4x is below its 5-year median of 21.1x, indicating that the stock is trading at a lower valuation compared to its historical levels. The forward P/E of 17.8x further supports this notion of a relatively attractive valuation. This P/E analysis is consistent with the GF Value™ verdict of being modestly undervalued, suggesting that there may be potential for price appreciation as the market adjusts to align with historical norms.

What Does DLTR's GF Score™ Tell Us? Metric Rating GF Score™ 76/100 Financial Strength 6/10 Profitability 6/10 Growth 6/10 Valuation 10/10 Momentum 4/10 The GF Score™ of 76/100 suggests that Dollar Tree Inc is positioned above average compared to other stocks in the market. The strongest aspect of DLTR’s score is its Valuation rank of 10/10, indicating it is perceived as a strong value relative to its price. Conversely, its Momentum rank of 4/10 suggests that the stock may not be exhibiting strong upward price movement, which could be a point of concern for those looking for quick returns. Overall, while Dollar Tree has a solid valuation, its financial strength, profitability, and growth ranks indicate that there is room for improvement in these areas.

What Are Insiders Doing with DLTR Stock? In the last three months, insiders at Dollar Tree Inc have sold $248.3 million worth of shares, with no reported buying activity. This pattern of significant selling may indicate that insiders are cautious about the company's future performance. Such actions could reflect their belief that the stock price may not have much upside in the near term, which is an important consideration for potential investors.

While insider selling does not necessarily predict future stock performance, it can serve as a signal that warrants attention. The absence of insider buying further emphasizes the cautious sentiment surrounding the stock.

What This Means for Investors Based on the GF Value™ estimate, Dollar Tree Inc DLTR is currently undervalued, presenting a potential opportunity for investors. However, the significant insider selling and the stock's momentum rank suggest caution. Investors should weigh the potential for price appreciation against the signals of insider activity and overall market conditions.

For the complete analysis, visit the Dollar Tree Inc DLTR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is DLTR's GF Score™?

DLTR's GF Score™ is 76/100, indicating that the stock is above average in terms of overall quality and investment potential.

Is DLTR overvalued or undervalued?

DLTR is considered undervalued based on the GF Value™ estimate, with a current price that is 15.2% below its fair value.

What is DLTR's P/E ratio?

DLTR's P/E ratio (TTM) is 19.4x, which is below its 5-year median of 21.1x, suggesting it is trading at a lower valuation compared to its historical averages.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

On June 24, 2026, Dollar Tree Inc (DLTR) shares rose 5.2% to a current price of $119.35. This recent uptick comes amidst a broader trend, with the stock experie

Key Takeaways DLTR trades below key retail benchmarks, though its price target implies only measured upside.DLTR raised its earnings outlook as multi-price, freight and shrink gains support profit momentum.DLTR faces pressure from softer traffic, higher SG&A costs, tariffs and transportation expenses. Dollar Tree, Inc. (DLTR - Free Report) offers a more interesting setup after stronger earnings, higher guidance and improving execution. The stock also trades at a valuation that looks less demanding than many retail benchmarks.

That does not make the buy case automatic. Traffic is still soft, cost pressure remains visible and the stock’s broader profile points to progress with limits.

DLTR Valuation Looks Less DemandingDollar Tree trades at 15.39 times forward 12-month earnings. That is below the Zacks sub-industry at 31.39 times, the broader Zacks sector at 22.78 times and the S&P 500 at 21.34 times.

Image Source: Zacks Investment Research

This discount can appeal to investors looking for a cheaper retail multiple tied to a company with improving earnings. Still, the $118 price target implies only measured upside from the cited share price of $111.65, which keeps valuation from looking like a clear bargain.

Dollar Tree Gets an Earnings ResetDollar Tree’s first-quarter fiscal 2026 results changed the earnings discussion. Adjusted earnings per share rose 38% year over year to $1.74, topping expectations and showing that better execution is reaching the bottom line.

The company also raised its full-year adjusted earnings per share outlook to $6.70-$7.10 from the prior range of $6.50-$6.90. That creates a stronger profit setup, especially as multi-price penetration, lower freight costs and better shrink performance support earnings momentum.

DLTR Has Cash Flow to Back the StoryDollar Tree’s financial position adds support to the investment case. The company ended the first quarter with $1 billion in cash, no borrowings under its credit facilities and no commercial paper outstanding.

Free cash flow reached $392 million in the quarter. Dollar Tree also repurchased about $595 million of shares and plans $1.1 billion to $1.2 billion in capital expenditures for fiscal 2026, showing room to invest in stores, distribution and assortment while returning capital.

Dollar Tree Still Faces Real FrictionThe caution case remains meaningful. Selling, general and administrative expenses increased 50 basis points to 27.8% of total revenue in the first quarter, reflecting higher marketing costs, general liability costs and depreciation tied to store investments.

Traffic is another pressure point. Comparable sales rose 3.5%, but the gain came from a 4.5% increase in average ticket while traffic declined 1%. Tariff uncertainty, higher fuel costs and transportation expenses add further risk to margin consistency.

Dollar General Corporation (DG - Free Report) is a relevant peer because both companies serve value-focused shoppers navigating pressure on household budgets. Five Below Inc. (FIVE - Free Report) also provides useful context, as discretionary value retail depends heavily on traffic, affordability and assortment appeal.

DLTR Offers a Mixed Risk-RewardDollar Tree’s investment case is better than it was when earnings visibility looked weaker. The stock has a lower multiple than key benchmarks, higher earnings guidance and enough cash flow to fund growth initiatives.

The issue is the limited room for error. Margin resilience and comparable-store sales growth must continue long enough to support further estimate gains. If macro pressure keeps traffic subdued or costs rise faster than planned, the shares could stay range-bound.

What DLTR’s Zacks Rank Signals NowThe bottom line is that DLTR has improving fundamentals, but not a clean all-clear. The stock currently carries a Zacks Rank #3 (Hold), which fits a profile where investors can recognize progress while waiting for stronger confirmation.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores add a more favorable layer. DLTR has a VGM Score of A, Growth Score of A, Momentum Score of A and Value Score of B. The combination supports a cautious-but-interesting investment profile, with the valuation discount and earnings momentum offset by traffic, tariff and expense risks.

Key Takeaways Dollar Tree is now centered on the Dollar Tree banner after completing the Family Dollar sale.Dollar Tree's multi-price rollout is supporting broader assortments and stronger ticket growth.Dollar Tree's margin gains reflect higher mark-on, lower freight costs and improved shrink control. Dollar Tree, Inc. (DLTR - Free Report) has become a more focused investment story, with the Dollar Tree banner now carrying the operating narrative after the Family Dollar sale. The stock’s outlook depends on whether stronger execution, multi-price expansion and margin progress can offset weaker traffic and a cautious consumer backdrop.

The latest setup is constructive, but not one-sided. Sales are growing, guidance has moved higher and margins are improving, yet investors still need evidence that traffic can recover.

Dollar Tree After the Family Dollar ExitDollar Tree completed the sale of Family Dollar on Jul. 5, 2025, making the Dollar Tree banner the company’s core operating brand. That shift gives investors a cleaner business to evaluate, centered on discount variety stores in the United States and Canada.

The transition is still not fully complete. Dollar Tree is providing a breakup of corporate selling, general and administrative expenses through fiscal 2026 to aid comparability after the divestiture. It also continues to provide certain transition services to the buyer of Family Dollar, which makes the operating story cleaner but still evolving.

DLTR Finds Growth in Multi-PriceMulti-price remains one of Dollar Tree’s most important growth levers. The format allows the company to offer higher-quality items, larger pack sizes and broader category choices while preserving its value positioning.

By the end of the first quarter of fiscal 2026, Dollar Tree had about 5,900 multi-price stores, after converting or adding roughly 630 stores in the quarter. The broader assortment is helping basket composition across consumables and discretionary categories, with ticket growth reflecting stronger multi-price penetration and more relevant products.

Dollar Tree Margins Improve on Better ExecutionThe margin story matters as much as sales growth in the current setup. In the first quarter of fiscal 2026, gross margin expanded 120 basis points (bps), driven mainly by higher mark-on, lower freight costs and lower shrink.

Adjusted operating income rose 22% year over year to $473.3 million, while adjusted operating margin expanded 110 bps to 9.5%. These gains show that internal execution, including better shrink control and freight benefits, is playing a bigger role in the earnings recovery than simple top-line growth.

Image Source: Zacks Investment Research

DLTR Still Needs Traffic to ReboundThe mixed part of the story is traffic. First-quarter comparable sales increased 3.5%, but that gain was driven by a 4.5% increase in average ticket, partly offset by a 1% decline in traffic.

That puts trip frequency near the center of the investment debate. Lower-income shoppers remain under pressure from higher fuel costs, inflation in essentials and broader macro uncertainty. Dollar General Corporation (DG - Free Report) is a relevant comparison because it also competes for value-driven essentials trips. Five Below Inc. (FIVE - Free Report) offers another point of comparison in discretionary value retail, where assortment freshness and price perception influence customer visits.

Dollar Tree Outlook Rises, but Risks RemainDollar Tree raised its fiscal 2026 adjusted earnings outlook after the stronger first quarter. The company now expects net sales from continuing operations of $20.5 billion to $20.7 billion, comparable-store sales growth of 3% to 4% and adjusted earnings per share of $6.70 to $7.10.

The outlook is not risk-free. Tariffs, markdowns, higher fuel costs, selling, general and administrative expense pressure and consumer softness remain key constraints. Management expects gross margin to be roughly flat for fiscal 2026, as merchandise margin and freight benefits are offset by tariffs and markdown pressure.

How DLTR’s Zacks Rank Fits the SetupThe bottom line is that Dollar Tree’s execution has improved, but the stock still carries a balanced risk-reward profile. Multi-price growth and margin recovery support the bull case, while traffic softness and cost uncertainty keep near-term visibility limited.

The stock currently carries a Zacks Rank #3 (Hold), which is consistent with a business showing progress but not enough clarity to support a more aggressive stance. Its Style Scores are stronger, with a Growth Score of A, Momentum Score of A, Value Score of B and VGM Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Those scores point to attractive growth, momentum and combined style characteristics. For investors, the combination suggests DLTR has favorable underlying traits, but the Zacks Rank keeps the broader view measured until traffic and cost pressures show steadier improvement.

A Dollar Tree sign is seen outside the store in Washington, U.S., June 1, 2021. REUTERS/Erin Scott/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesDollar Tree keeps annual net sales forecast unchangedFirst-quarter sales narrowly beat analyst expectationsQuarterly gross margin expanded by 120 basis points, helping hit record EPSCompany excludes tariff refunds ​of $110 million so far from forecastMay 28 (Reuters) - Dollar Tree (DLTR.O), opens new tab raised its annual profit forecast on Thursday, buoyed by resilient demand for affordable essentials from budget‑conscious consumers and efforts to offset higher costs, sending its shares up ​about 12% in early trading.

The company has been improving its product selection ​to attract value-focused shoppers already grappling with higher living costs.

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Dollar Tree has ⁠also moved away from its historic $1 model to a "multi‑price" strategy, with items priced ​at $1.25, $3, $5 and higher. This, along with easing freight expenses, has helped it counter higher tariffs ​and supply chain costs.

For the first quarter, gross margins increased 120 basis points, helping the company post a 1% rise in net income and record per-share profit of $1.74 that beat market estimates of $1.54, ​according to data compiled by LSEG.

The company maintained its annual net sales forecast ​and said it expects fiscal 2026 adjusted earnings of $6.70 to $7.10 per share, compared with its prior forecast ‌of $6.50 ⁠to $6.90.

"There's no question the low-income consumer is under pressure," CFO Stuart Clendening said, while CEO Mike Creeden added that customers are "shopping thoughtfully and closer to need."

Executives also said the company is benefiting from consumers trading down.

Recent U.S. retail earnings show higher-income Americans continue ​to spend despite ​rising fuel costs, with ⁠steady sales underscoring resilience.

"Dollar Tree's business remains solid and should continue to benefit from a stickier core consumer and gains from ​middle-to-upper-income consumers trading down as macro trends remain challenging," Telsey Advisory ​analyst Joseph ⁠Feldman said.

The company, which sources much of its imported merchandise from China, said its forecast excludes about $110 million in tariff refunds received through May 26 after the Supreme Court ⁠struck down ​tariffs that U.S. President Donald Trump had introduced ​last year.

The graphic shows that Dollar Tree has underperformed other discount retailers so far this yearFirst-quarter sales rose 7.2% to $4.97 billion, narrowly beating analysts' estimates of $4.96 billion.

Reporting by Neil J Kanatt in Bengaluru; Editing by Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Dollar Tree logged higher profit and revenue in its fiscal first quarter, as consumers continued to rely on the company for low-cost goods.