Dollar Tree Jumps 21% After Q1 EPS Beats by 19 Cents, Lifts 2026 Outlook
Updated
Updated · Barchart · May 31
Dollar Tree Jumps 21% After Q1 EPS Beats by 19 Cents, Lifts 2026 Outlook
3 articles · Updated · Barchart · May 31
Summary
Dollar Tree shares surged 21.27% over five trading days after the discount retailer posted fiscal first-quarter adjusted EPS of $1.74, beating the $1.55 consensus, and raised its full-year profit forecast.
Revenue rose 7.3% to $4.98 billion, while comparable sales increased 3.5% even as traffic fell 1%, with a 4.5% jump in average ticket showing shoppers are making fewer trips but spending more each visit.
Gross margin expanded 120 basis points despite tariff-related costs, and the company repurchased 5 million shares for about $595 million while ending the quarter with $1 billion in cash.
Management now expects 2026 sales of $20.5 billion to $20.7 billion and adjusted EPS of $6.70 to $7.10, alongside plans to open about 400 stores and close roughly 75.
The results add to recent signs that value-focused chains are benefiting as consumers stay willing to spend but increasingly trade down and prioritize essentials.