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CHESAPEAKE, Va.--(BUSINESS WIRE)--Dollar Tree (NASDAQ: DLTR) is marking 40 years of bringing incredible value to customers with two milestones that celebrate its roots and invest in its future: the opening of its 9,500th store in Suffolk, Virginia, and a $40 million investment through the newly established Dollar Tree Impact Fund to expand access to everyday essentials and support the well-being of the communities where Dollar Tree operates across the U.S. and Canada. "Forty years ago, Dollar T.

Dollar Tree's multi-price strategy fuels sales growth, attracts higher-income shoppers and boosts customer engagement despite inflation and cost pressures.

When courts ordered tariff refunds for importers, Dollar Tree collected a nine-figure check from Washington. Shoppers who funded those duties through higher shelf prices are wondering if any of it finds its way back to them.

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On Tuesday the New York Federal Reserve put a number on what shoppers have suspected for a year. By February 2026, tariffs had added 2.9 percentage points to goods price inflation, and without them goods prices would have fallen slightly. Wall Street Journal economics correspondent Nick Timiraos circulated the research on October 6. It also found that roughly one quarter of every point of higher tariff rates reaches consumer prices within a year.

The person at the register paid, and some of that money is now coming back to someone else.

A $383 Million Check From Washington In February 2026, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) could not authorize tariffs. On March 27, 2026, a Court of International Trade judge ordered U.S. Customs and Border Protection to reliquidate entries without the IEEPA duties. That cleared the way for importers to get back duties they had already paid.

Dollar Tree (NASDAQ:DLTR | DLTR Price Prediction) received $383 million in IEEPA refunds in its fiscal second quarter. Of that, $369 million ran through cost of sales and $14 million came as interest. The net benefit was $1.31 per share. The windfall lifted GAAP earnings to $2.70 against a $1.13 consensus, a 138.6% beat, and added 650 basis points to operating margin expansion.

In the same quarter, Dollar Tree bought back 5.6 million shares for $605 million. It still has $2.5 billion left under its authorization.

Where the Refund Money Is Going Management did not announce a rebate or price cut. CEO Mike Creedon said funds would go toward “targeted pricing strategies, marketing, store operations, and store conditions.” The company plans $210 million of refund reinvestment for the full year, including a $40 million charitable contribution. It expects that spending to cut about $0.50 from third-quarter EPS.

CFO Stewart Glendinning argued shoppers benefit indirectly through lower ongoing tariff rates absorbing inflation “rather than passing those costs on to the customer.” The full-year adjusted EPS guide of $7.70 to $8.05 still includes roughly $0.60 of net refund benefit going to shareholders.

Dollar Tree did nothing improper. Importers paid the duties, so importers get the refunds. Shoppers who paid the higher shelf prices have no way to claim any of it.

A Price-Point Promise With an Asterisk The irony cuts deeper at a chain built on a fixed price. Dollar Tree moved about 710 more stores to multi-price format, bringing the total to roughly 6,600 stores selling items above $1.25. Multi-price goods now make up 17% of total sales, while more than 85% of assortment stays priced at $2 or less. The average ticket rose 3.3% while traffic grew just 0.4%.

Why Third-Quarter Traffic Matters Most Investors have looked past the one-time gain. Shares traded at $129.84 when results were filed on August 27 and stood at $116.19 on October 6. The New York Fed data supports concerns that dollar stores may no longer be bargains after inflation and tariffs.

Third-quarter results will be the test. If the reinvestment lifts traffic well above 0.4%, it supports Creedon’s argument that customers benefit indirectly. If traffic stalls while the average ticket keeps rising, the refund will look the way it does on the income statement: a windfall for shareholders, paid for by shoppers.

Data Sources Dollar Tree tariff refund irony: the New York Fed’s estimates of how much tariffs added to goods inflation and how much reached consumer prices, as circulated by Nick Timiraos. Contact [email protected] for any questions or corrections.

Key Takeaways Dollar Tree's Q2 comps rose 3.7% as average ticket gained 3.3% and traffic increased 0.4%.Multi-price penetration reached 17% of sales, while consumables comps rose 5.8% and discretionary sales 1.6%.Management sees better assortments, store standards and marketing sustaining traffic as ticket comps toughen. Dollar Tree, Inc. (DLTR - Free Report) appears to be finding a healthier growth formula as improving traffic begins to complement ticket gains. The retailer entered the second half with strengthening customer engagement, better store execution and a broader assortment that is drawing shoppers across income groups. With traffic turning positive earlier than expected and momentum building through the second quarter, the focus now shifts to whether these operational improvements can keep store visits rising as the benefit from prior pricing actions starts to moderate.

The numbers support that improving trend. Second-quarter comparable-store sales advanced 3.7%, driven by a 3.3% increase in average ticket and a 0.4% rise in traffic. Dollar Tree now expects full-year comparable sales growth of 3%-4%. Multi-price penetration also increased about 400 basis points year over year to 17% of total sales, while consumables delivered a 5.8% comp and discretionary sales rose 1.6%. These metrics suggest that growth is becoming broader, with traffic increasingly contributing alongside pricing and assortment gains.

The bigger test will come in the back half, when ticket comparisons become tougher and traffic is expected to carry more of the growth burden. Management believes better assortments, improved store standards and stronger marketing can sustain customer visits, and it was encouraged by the start of the third quarter. However, higher freight costs, elevated fuel prices and broad-based merchandise inflation could pressure profitability. Sustained traffic gains will therefore be important not only for meeting the comp outlook but also for supporting operating leverage and longer-term earnings growth.

DLTR’s Price Performance, Valuation & EstimatesShares of this Zacks Rank #2 (Buy) company have gained 6.4% in the past six months against the industry’s loss of 5.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, DLTR trades at a forward price-to-earnings ratio of 14.22X compared with the industry’s average of 27.14X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DLTR’s current fiscal-year sales and earnings implies year-over-year growth of 6.6% and 36.4%, respectively. For the next fiscal year, the consensus estimate indicates a 6.1% rise in sales and 1.7% growth in earnings. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has increased in the past seven days.

Image Source: Zacks Investment Research

Other Key PicksFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 89.5% and 19.8%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales indicates growth of 23.5% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings indicates growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.

Key Takeaways Dollar Tree's Q2 comps rose 3.7%, driven by higher average ticket and traffic.Dollar Tree's multi-price sales reached 17%, while consumables comps increased 5.8%.Dollar Tree raised fiscal 2026 sales guidance to $20.5-$20.7 billion and adjusted EPS to $7.70-$8.05. Dollar Tree, Inc. (DLTR - Free Report) continues to strengthen its business by improving its assortment, store execution and value proposition. The company’s initiatives are increasingly focused on enhancing convenience and discovery while attracting customers across income groups. In the second quarter of fiscal 2026, comparable store sales increased 3.7%, driven by a 3.3% increase in average ticket and a 0.4% rise in traffic. Net sales increased 7% year over year, with net new store growth contributing 3.3%.

Dollar Tree is expanding its assortment across categories and price points to appeal to a wider range of shoppers. Multi-price penetration increased approximately 400 basis points year over year to 17% of total sales. The company continues to emphasize compelling opening price points, trusted brands, new categories and greater choice. Consumables posted a 5.8% comp increase in the second quarter, while discretionary comps increased 1.6%. Personal care and toys were notable outperformers, with strength broadly spread across the assortment.

Dollar Tree is also working to improve store conditions through stronger in-stock levels, recovery and store-level planning. Through the first half of fiscal 2026, it opened 188 stores and closed 34. Management continues to target about 400 new stores and 75 closures for the fiscal year. Management highlighted that better execution is also benefiting inventory control and merchandise protection. These initiatives complement targeted refreshes and renovations designed to improve store conditions. The combination of measured new-store growth and tighter operating standards provides a path to increase productivity without relying solely on footprint expansion.

Overall, Dollar Tree is emphasizing assortment expansion, multi-price penetration, store improvements, targeted pricing and stronger customer engagement. The company raised its fiscal 2026 outlook to $20.5-$20.7 billion in net sales, with comparable sales growth of 3-4%, while adjusted EPS is expected at $7.70-$8.05.

DLTR’s Price Performance, Valuation and EstimatesDollar Tree’s shares have increased 17.5% in the past year compared with the industry’s 6.8% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, DLTR trades at a forward price-to-earnings ratio of 14.46X compared with the industry’s average of 27.11X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DLTR’s fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 34.6% and 2.9%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has increased in the past 30 days.

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Dollar Tree currently carries a Zacks Rank #2 (Buy).

Eye These Other Solid Picks in RetailFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 89.5% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales indicates growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings indicates growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.

Key Takeaways Dollar Tree's Q2 sales rose 7%, while comparable sales increased 3.7% on higher traffic and ticket.Dollar Tree expanded its multi-price rollout to about 6,600 stores, with such goods at 17% of sales.Dollar Tree raised fiscal 2026 adjusted EPS guidance to $7.70-$8.05 amid ongoing margin pressures. Dollar Tree, Inc. (DLTR - Free Report) shares have fallen 17.9% over the past four weeks and 8.4% over the past three months. Yet the stock remains up 18.9% over the past year, leaving its longer rebound intact but under pressure.

The tension is between improving sales and traffic on one side and margin durability on the other. Tariff-refund benefits lifted the latest quarter, while reinvestment, fuel, inflation and merchandise mix could weigh more heavily on profitability ahead.

Dollar Tree's second-quarter fiscal 2026 net sales rose 7% to $4.89 billion, while comparable-store sales advanced 3.7%. Average ticket increased 3.3% and traffic improved 0.4%, turning positive sequentially. Consumables delivered a 5.8% comp and discretionary sales rose 1.6% despite helium-related in-stock constraints that reduced sales by about $15 million.

The multi-price rollout is also broadening the assortment. Dollar Tree ended the quarter with about 6,600 multi-price stores after converting or adding roughly 710 locations during the period. Multi-price merchandise represented 17% of sales, up about 400 basis points year over year. Store execution is improving as well, with locations classified internally as opportunities for improvement falling to about one-third of the fleet from roughly half at the October 2025 Investor Day.

Margin quality remains the central concern. Gross margin expanded 850 basis points to 42.9% in the second quarter, but about 680 basis points of that increase came from the net impact of tariff refunds. The company received $383 million of refunds and plans to reinvest about $210 million in pricing, marketing, store operations and store conditions. Third-quarter adjusted earnings guidance of 80-95 cents per share includes an estimated 50-cent negative impact from tariff-refund reinvestments.

Costs outside the refund cycle also deserve attention. First-half selling, general and administrative expenses were 28.5% of revenues compared with 28.4% a year earlier, reflecting higher marketing investments, general liability costs and depreciation from store investments. Higher inflation, elevated fuel costs and a sales mix tilted toward lower-margin consumables can further limit gross-margin upside.

The earnings outlook nevertheless moved higher. Dollar Tree raised fiscal 2026 adjusted earnings guidance to $7.70-$8.05 per share, including an estimated 60-cent benefit from the net impact of tariff refunds, while maintaining net sales guidance of $20.5-$20.7 billion and comparable-sales growth of 3-4%. The company also generated $675 million of free cash flow in the second quarter, supporting continued investment and share repurchases.

Investors assessing the value-retail landscape can also watch Dollar General Corporation (DG - Free Report) , another small-box retailer centered on affordable everyday essentials. Its broad mix of food, health, cleaning and household products makes it a relevant comparison to Dollar Tree's growing consumables business.

Ross Stores, Inc. (ROST - Free Report) offers a different value-retail reference point through its off-price apparel and home-fashion model. Its merchandise mix provides a more discretionary comparison as investors gauge how value-seeking demand is developing across retail.

DLTR's recent decline leaves the rebound dependent on execution rather than one-time margin help. The stock trades at 14.1X forward 12-month earnings, below its five-year median of 17.7X, but the path to sustained margin improvement still depends on controlling reinvestment, freight and inflation while preserving traffic gains.

Image Source: Zacks Investment Research

Dollar Tree currently carries a Zacks Rank #2 (Buy). The rank is designed around earnings-estimate revisions over a one- to three-month horizon, and the current reading points to favorable near-term estimate trends rather than guaranteeing share-price gains. 

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

The stock also has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. Those scores indicate favorable characteristics across valuation, growth and momentum within the Zacks Style Scores framework, complementing the Zacks Rank as investors weigh the stock's operating progress against its margin risks.

Key Takeaways ROST posted 13% sales growth and plans 115 store openings in fiscal 2026.DLTR is expanding its multi-price assortment while using AI to improve customer engagement and performance.DG raised its fiscal 2026 sales, same-store sales and EPS outlook amid improving execution. 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 Zacks-defined Retail – Discount Stores industry is currently in the top 11% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect the Investment Bank industry to outperform the market over the next three to six months.

At this stage, we recommend buying shares of three discount retail store bigwigs with a favorable Zacks Rank. The stocks are: Ross Stores Inc. (ROST - Free Report) , Dollar Tree Inc. (DLTR - Free Report) and Dollar General Corp. (DG - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks year to date.

Image Source: Zacks Investment Research

Ross Stores Inc.Ross Stores is well positioned for continued growth, supported by strong sales momentum, customer acquisition and a compelling value proposition. Second-quarter fiscal 2026 sales rose 13%, with broad-based strength across categories and regions. 

ROST sees further upside from merchandising, marketing and store-execution initiatives that remain in the early stages. Store expansion adds another growth lever, with 115 openings planned for fiscal 2026. ROST also maintains a strong financial foundation, supported by healthy liquidity and cash generation.

ROST has an expected revenue and earnings growth rate of 12.4% and 32.7%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 11.7% in the last 30 days.

Strong Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 19.1% from the last closing price of $231.15. The brokerage target price is currently in the range of $234-$310. This indicates a maximum upside of 34.1% and no downside.

Dollar Tree Inc.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. 

DLTR continues to enhance its merchandising, store standards, targeted marketing and operational execution while leveraging data and artificial intelligence (AI) to better engage customers and optimize performance. 

DLTR 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.

DLTR has an expected revenue and earnings growth rate of 6.7% and 34.6%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 10.6% in the last 30 days.

Strong Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 21.6% from the last closing price of $112.33. The brokerage target price is currently in the range of $98-$170. This indicates a maximum upside of 51.3% and a downside of 12.8%.

Dollar General Corp.Dollar General is benefiting from disciplined execution, improving store standards and a sharper value proposition, supporting sustained traffic and market-share gains across income cohorts. DG’s extensive rural footprint, remodel program and expanding delivery capabilities reinforce convenience, while digital engagement and DG Media Network monetization provide additional growth and margin opportunities. 

Better inventory control, lower shrink, reduced damages and supply-chain efficiencies are strengthening profitability and operating performance. DG raised its fiscal 2026 outlook for net sales growth of 4-4.3%, same-store sales growth of 2.5-2.9% and EPS of $7.80-$8.00, reflecting confidence in continued momentum. Ongoing store investments and productivity initiatives should support DG’s earnings growth and shareholder returns.

DG has an expected revenue and earnings growth rate of 4.1% and 12.9%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.4% in the last seven days.

Strong Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 15.4% from the last closing price of $121.91. The brokerage target price is currently in the range of $90-$176. This indicates a maximum upside of 44.4% and a downside of 26.2%.

Nykredit A S purchased a new position in shares of Dollar Tree, Inc. (NASDAQ:DLTR – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 1,358,361 shares of the company’s stock, valued at approximately $164,294,000. Nykredit A S owned 0.72% of Dollar Tree at the end of the most recent quarter.

Several other hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Dollar Tree during the second quarter valued at approximately $2,643,741,000. Pzena Investment Management LLC purchased a new stake in shares of Dollar Tree in the second quarter worth approximately $1,176,661,000. Primecap Management Co. CA purchased a new stake in shares of Dollar Tree in the second quarter worth approximately $455,845,000. Bank of America Corp DE bought a new stake in shares of Dollar Tree during the 2nd quarter worth approximately $385,350,000. Finally, Norges Bank bought a new stake in shares of Dollar Tree during the 4th quarter worth approximately $260,858,000. 97.40% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In A number of equities analysts recently issued reports on the company. Piper Sandler boosted their price objective on Dollar Tree from $114.00 to $121.00 and gave the company a “neutral” rating in a report on Monday, August 31st. The Goldman Sachs Group reiterated a “neutral” rating and issued a $131.00 target price on shares of Dollar Tree in a research note on Monday, August 31st. Evercore upgraded Dollar Tree from a “hold” rating to an “outperform” rating in a research report on Wednesday, July 8th. BNP Paribas Exane boosted their target price on shares of Dollar Tree from $88.00 to $98.00 and gave the company an “underperform” rating in a research note on Friday, May 29th. Finally, Gordon Haskett upgraded shares of Dollar Tree from a “reduce” rating to a “hold” rating and set a $115.00 price target on the stock in a report on Thursday, June 4th. Eleven research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $131.68.

Get Our Latest Research Report on Dollar Tree Insider Activity In related news, insider Robert Aflatooni sold 2,500 shares of the company’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $126.01, for a total value of $315,025.00. Following the completion of the sale, the insider directly owned 24,820 shares of the company’s stock, valued at $3,127,568.20. This represents a 9.15% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $131.47, for a total transaction of $155,791.95. Following the transaction, the director owned 4,089 shares in the company, valued at approximately $537,580.83. The trade was a 22.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 7.10% of the company’s stock.

Dollar Tree Stock Up 1.8% Shares of NASDAQ:DLTR opened at $114.40 on Friday. Dollar Tree, Inc. has a 52-week low of $84.71 and a 52-week high of $142.40. The stock has a market cap of $21.46 billion, a P/E ratio of 13.97, a price-to-earnings-growth ratio of 1.04 and a beta of 0.66. The business’s 50 day moving average is $126.67 and its 200 day moving average is $114.16. The company has a quick ratio of 0.39, a current ratio of 1.13 and a debt-to-equity ratio of 0.86.

Dollar Tree (NASDAQ:DLTR – Get Free Report) last issued its earnings results on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, beating analysts’ consensus estimates of $1.15 by $1.55. Dollar Tree had a return on equity of 38.61% and a net margin of 8.03%.The business had revenue of $4.89 billion during the quarter, compared to analyst estimates of $4.86 billion. During the same period in the previous year, the company posted $0.77 EPS. Dollar Tree’s revenue was up 7.0% on a year-over-year basis. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. Sell-side analysts predict that Dollar Tree, Inc. will post 7.95 EPS for the current year.

Dollar Tree declared that its Board of Directors has approved a share repurchase program on Thursday, July 2nd that allows the company to repurchase $2.50 billion in shares. This repurchase authorization allows the company to reacquire up to 10.7% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s leadership believes its stock is undervalued.

Dollar Tree Profile (Free Report)

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, seasonal items, toys, health and personal-care products, and other general merchandise. Product assortments may include both nationally recognized brands and private-label goods.

The company traces its origins to discount retail operations established in the 1950s and adopted the Dollar Tree name in the early 1990s.

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Integrated Wealth Concepts LLC increased its stake in shares of Dollar Tree, Inc. (NASDAQ:DLTR – Free Report) by 347.1% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 19,005 shares of the company’s stock after purchasing an additional 14,754 shares during the quarter. Integrated Wealth Concepts LLC’s holdings in Dollar Tree were worth $2,299,000 as of its most recent SEC filing.

A number of other institutional investors also recently added to or reduced their stakes in DLTR. California State Teachers Retirement System raised its holdings in Dollar Tree by 13,223.3% in the second quarter. California State Teachers Retirement System now owns 34,952,131 shares of the company’s stock worth $4,227,460,000 after purchasing an additional 34,689,793 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Dollar Tree in the 2nd quarter valued at about $2,643,741,000. Pzena Investment Management LLC purchased a new position in shares of Dollar Tree in the 2nd quarter worth approximately $1,176,661,000. Primecap Management Co. CA purchased a new position in shares of Dollar Tree in the 2nd quarter worth approximately $455,845,000. Finally, Bank of America Corp DE bought a new position in shares of Dollar Tree during the 2nd quarter worth approximately $385,350,000. Institutional investors own 97.40% of the company’s stock.

Wall Street Analyst Weigh In Several equities research analysts have weighed in on DLTR shares. JPMorgan Chase & Co. raised their target price on shares of Dollar Tree from $160.00 to $170.00 and gave the company an “overweight” rating in a research note on Monday, July 6th. Wall Street Zen upgraded Dollar Tree from a “hold” rating to a “buy” rating in a report on Saturday, August 22nd. Raymond James Financial reissued an “outperform” rating and issued a $145.00 price objective on shares of Dollar Tree in a research report on Friday, August 28th. Wells Fargo & Company boosted their target price on Dollar Tree from $145.00 to $155.00 and gave the stock an “overweight” rating in a research note on Monday, August 17th. Finally, Weiss Ratings raised Dollar Tree from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, August 28th. Eleven investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $131.68.

Get Our Latest Research Report on DLTR Insider Transactions at Dollar Tree In related news, insider Robert Aflatooni sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $126.01, for a total value of $315,025.00. Following the sale, the insider owned 24,820 shares in the company, valued at $3,127,568.20. This represents a 9.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Stephanie Stahl sold 1,185 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $131.47, for a total transaction of $155,791.95. Following the completion of the transaction, the director owned 4,089 shares in the company, valued at approximately $537,580.83. This trade represents a 22.47% decrease in their position. The SEC filing for this sale provides additional information. 7.10% of the stock is currently owned by corporate insiders.

Dollar Tree Trading Up 0.8% NASDAQ DLTR opened at $119.17 on Tuesday. Dollar Tree, Inc. has a 12-month low of $84.71 and a 12-month high of $142.40. The company has a fifty day simple moving average of $127.22 and a two-hundred day simple moving average of $114.45. The company has a current ratio of 1.13, a quick ratio of 0.39 and a debt-to-equity ratio of 0.86. The stock has a market cap of $22.36 billion, a P/E ratio of 14.55, a P/E/G ratio of 1.09 and a beta of 0.66.

Dollar Tree (NASDAQ:DLTR – Get Free Report) last announced its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, beating analysts’ consensus estimates of $1.15 by $1.55. The firm had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.86 billion. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. The business’s quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.77 earnings per share. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. On average, analysts forecast that Dollar Tree, Inc. will post 7.95 earnings per share for the current year.

Dollar Tree announced that its board has approved a stock repurchase plan on Thursday, July 2nd that allows the company to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 10.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Dollar Tree Company Profile (Free Report)

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, seasonal items, toys, health and personal-care products, and other general merchandise. Product assortments may include both nationally recognized brands and private-label goods.

The company traces its origins to discount retail operations established in the 1950s and adopted the Dollar Tree name in the early 1990s.

Featured Stories Five stocks we like better than Dollar Tree Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down 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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HighTower Advisors LLC trimmed its holdings in Dollar Tree, Inc. (NASDAQ:DLTR – Free Report) by 32.6% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 11,607 shares of the company’s stock after selling 5,607 shares during the period. HighTower Advisors LLC’s holdings in Dollar Tree were worth $1,404,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently made changes to their positions in DLTR. NewEdge Advisors LLC raised its stake in shares of Dollar Tree by 3,237.4% during the 1st quarter. NewEdge Advisors LLC now owns 13,750 shares of the company’s stock valued at $1,032,000 after purchasing an additional 13,338 shares during the period. Woodline Partners LP boosted its stake in Dollar Tree by 40.7% in the 1st quarter. Woodline Partners LP now owns 17,078 shares of the company’s stock worth $1,282,000 after purchasing an additional 4,941 shares during the period. Focus Partners Wealth grew its holdings in Dollar Tree by 2.0% during the 1st quarter. Focus Partners Wealth now owns 10,646 shares of the company’s stock valued at $799,000 after buying an additional 213 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in Dollar Tree during the 2nd quarter valued at about $257,000. Finally, CW Advisors LLC bought a new stake in shares of Dollar Tree during the second quarter valued at about $264,000. Hedge funds and other institutional investors own 97.40% of the company’s stock.

More Dollar Tree News Here are the key news stories impacting Dollar Tree this week:

Positive Sentiment: Zacks Research increased its FY2028 EPS forecast to $7.89 from $7.67 and raised its FY2029 forecast to $8.86 from $8.62. Analysts also lifted estimates for Q1 2028, Q2 2028, Q4 2028 and Q1 2029, signaling stronger longer-term earnings expectations. Neutral Sentiment: The revisions leave Zacks’ projected FY2028 earnings only modestly above the current-year consensus estimate of $7.84. The changes may support investor confidence, but they do not represent a formal company guidance update. Neutral Sentiment: Reported short-interest data showed zero shares short and a zero-day days-to-cover ratio, providing no meaningful indication of short-seller pressure or potential short-covering demand. Negative Sentiment: Zacks Research lowered its Q4 2027 EPS forecast to $2.63 from $2.76 and cut its Q3 2028 forecast to $1.39 from $1.53. These reductions point to possible pressure on earnings in specific reporting periods. Negative Sentiment: An opinion article titled “3 reasons to avoid DLTR and 1 stock to buy instead” reflects a bearish view of Dollar Tree, although it is commentary rather than a new operating or financial disclosure. 3 reasons to avoid DLTR and 1 stock to buy instead Insider Buying and Selling In other Dollar Tree news, Director Stephanie Stahl sold 1,185 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $131.47, for a total value of $155,791.95. Following the completion of the transaction, the director owned 4,089 shares of the company’s stock, valued at $537,580.83. The trade was a 22.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Robert Aflatooni sold 2,500 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $126.01, for a total transaction of $315,025.00. Following the completion of the transaction, the insider directly owned 24,820 shares in the company, valued at $3,127,568.20. The trade was a 9.15% decrease in their position. The disclosure for this sale is available in the SEC filing. 7.10% of the stock is owned by insiders. Dollar Tree Stock Performance Shares of DLTR opened at $118.17 on Monday. The company has a market cap of $22.17 billion, a PE ratio of 14.43, a price-to-earnings-growth ratio of 1.09 and a beta of 0.66. The company has a current ratio of 1.13, a quick ratio of 0.39 and a debt-to-equity ratio of 0.86. The stock has a 50-day moving average price of $127.27 and a 200-day moving average price of $114.54. Dollar Tree, Inc. has a 12-month low of $84.71 and a 12-month high of $142.40.

Dollar Tree (NASDAQ:DLTR – Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $2.70 earnings per share for the quarter, topping the consensus estimate of $1.15 by $1.55. The company had revenue of $4.89 billion for the quarter, compared to analysts’ expectations of $4.86 billion. Dollar Tree had a net margin of 8.03% and a return on equity of 38.61%. Dollar Tree’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.77 earnings per share. Dollar Tree has set its Q3 2026 guidance at 0.800-0.950 EPS and its FY 2026 guidance at 7.700-8.050 EPS. As a group, equities analysts forecast that Dollar Tree, Inc. will post 7.95 earnings per share for the current fiscal year.

Dollar Tree announced that its Board of Directors has initiated a stock buyback program on Thursday, July 2nd that permits the company to buyback $2.50 billion in shares. This buyback authorization permits the company to reacquire up to 10.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

Analyst Ratings Changes DLTR has been the topic of a number of recent analyst reports. Deutsche Bank Aktiengesellschaft increased their price target on shares of Dollar Tree from $99.00 to $102.00 and gave the stock a “hold” rating in a report on Thursday, June 4th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $131.00 price objective on shares of Dollar Tree in a research note on Monday, August 31st. BNP Paribas Exane upped their target price on shares of Dollar Tree from $88.00 to $98.00 and gave the stock an “underperform” rating in a report on Friday, May 29th. Jefferies Financial Group upgraded shares of Dollar Tree from a “moderate sell” rating to a “buy” rating in a research note on Wednesday, July 8th. Finally, Guggenheim boosted their price target on shares of Dollar Tree from $135.00 to $145.00 and gave the company a “buy” rating in a research report on Tuesday, August 25th. Eleven investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $131.68.

Read Our Latest Analysis on DLTR

About Dollar Tree (Free Report)

Dollar Tree, Inc operates discount variety stores under the Dollar Tree brand. Its stores offer a broad selection of merchandise at value-oriented prices, including consumable products, household supplies, seasonal items, toys, health and personal-care products, and other general merchandise. Product assortments may include both nationally recognized brands and private-label goods.

The company traces its origins to discount retail operations established in the 1950s and adopted the Dollar Tree name in the early 1990s.

Read More Five stocks we like better than Dollar Tree Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound 3 Small-Cap Biotechs With Binary Catalysts on the Calendar Planet Labs Has Fallen Back to Earth, But Wall Street Still Sees a Rebound As Homeowners’ Premiums Surge, This Insurer Is Posting Record Profits 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).

Receive News & Ratings for Dollar Tree Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dollar Tree and related companies with MarketBeat.com's FREE daily email newsletter.

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.

Read Next

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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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Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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.

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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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