Dollar Tree Reports 7.3% Sales Growth in Q1
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 52 minutes ago
0mins
Source: seekingalpha
- Strong Sales Performance: Dollar Tree reported a 7.3% year-over-year sales increase to $4.98 billion in Q1, exceeding the consensus estimate of 3.2% same-store sales growth, indicating robust performance amid economic pressures.
- Same-Store Sales Growth: The Dollar Tree banner achieved a 3.5% increase in same-store sales, driven by a 4.5% rise in average ticket size, despite a 1.0% decline in traffic, reflecting sustained consumer demand for value.
- Gross Margin Improvement: Gross profit margin increased by 120 basis points, primarily due to higher mark-on, lower freight costs, and reduced shrink, although partially offset by increased tariffs and markdowns, showcasing effective cost management.
- Optimistic Future Outlook: Dollar Tree guided for full-year EPS of $6.70 to $7.10, surpassing the consensus of $6.67, reflecting confidence in strategic execution and new store openings, which are expected to further drive profit growth.
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Analyst Views on DLTR
Wall Street analysts forecast DLTR stock price to rise
19 Analyst Rating
8 Buy
6 Hold
5 Sell
Hold
Current: 93.700
Low
75.00
Averages
127.41
High
160.00
Current: 93.700
Low
75.00
Averages
127.41
High
160.00
About DLTR
Dollar Tree, Inc. is an operator of retail discount stores operating under the brand names of Dollar Tree and Dollar Tree Canada. The Company operates approximately 9,000 stores across 48 states and the District of Columbia and approximately 275 stores across seven Canadian provinces. Its Dollar Tree segment is an operator of discount variety stores offering merchandise predominantly at the opening price point. The Dollar Tree segment includes its operations under the Dollar Tree and Dollar Tree Canada brands, 16 distribution centers in the United States and two distribution centers in Canada. The merchandise mix in its stores consists of consumable merchandise and discretionary merchandise, including variety merchandise and seasonal goods. Consumable merchandise includes everyday consumables, such as household paper and chemicals, food, candy, health and personal care products, and in most stores, frozen and refrigerated food.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dollar Tree Q1 Earnings Announcement Scheduled
- Earnings Release Date: Dollar Tree is set to announce its Q1 earnings on May 28 before market open, with a consensus EPS estimate of $1.55, reflecting a 23% year-over-year growth that showcases the company's resilience and growth potential amid economic pressures.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $4.97 billion, representing a 50.2% year-over-year increase, which will further solidify Dollar Tree's leadership in the discount retail market, especially as consumers seek value in their purchases.
- Historical Performance Review: Over the past two years, Dollar Tree has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, indicating the company's financial stability and adaptability in the market.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 6 upward revisions and 9 downward revisions, while revenue estimates experienced 5 upward and 5 downward revisions, reflecting mixed market sentiments regarding the company's future performance, which could impact investor confidence.
See More
Dollar Tree Raises Annual Profit Forecast Amid Strong Demand
- Earnings Forecast Increase: Dollar Tree raised its fiscal 2026 adjusted earnings per share forecast to $6.70 to $7.10, up from the previous range of $6.50 to $6.90, reflecting the company's confidence in future performance.
- Stock Price Surge: The company's shares rose about 12% in premarket trading, driven by strong demand and cost-cutting efforts, indicating a positive market reaction to its profitability outlook.
- Changing Consumer Demand: Rising living costs due to higher gasoline prices linked to the war in Iran have led consumers to prioritize value, boosting sales at discount retailers like Dollar Tree, highlighting a favorable market environment for the company.
- Store Layout Enhancements: By updating store layouts, improving product selection, and enhancing seasonal displays, Dollar Tree has further improved the shopping experience, which is expected to continue driving sales growth and strengthening its competitive position.
See More
Dollar Tree Reports 7.3% Sales Growth in Q1
- Strong Sales Performance: Dollar Tree reported a 7.3% year-over-year sales increase to $4.98 billion in Q1, exceeding the consensus estimate of 3.2% same-store sales growth, indicating robust performance amid economic pressures.
- Same-Store Sales Growth: The Dollar Tree banner achieved a 3.5% increase in same-store sales, driven by a 4.5% rise in average ticket size, despite a 1.0% decline in traffic, reflecting sustained consumer demand for value.
- Gross Margin Improvement: Gross profit margin increased by 120 basis points, primarily due to higher mark-on, lower freight costs, and reduced shrink, although partially offset by increased tariffs and markdowns, showcasing effective cost management.
- Optimistic Future Outlook: Dollar Tree guided for full-year EPS of $6.70 to $7.10, surpassing the consensus of $6.67, reflecting confidence in strategic execution and new store openings, which are expected to further drive profit growth.
See More
Dollar Tree Q1 Earnings Beat Expectations
- Earnings Surprise: Dollar Tree reported a Q1 Non-GAAP EPS of $1.74, beating expectations by $0.19, which reflects the company's robust performance in the current economic climate and boosts investor confidence.
- Revenue Growth: The company achieved revenue of $4.98 billion, a 7.3% year-over-year increase, surpassing market expectations by $20 million, indicating sustained competitiveness in the retail sector.
- Strong Cash Flow: Dollar Tree generated $644 million in net cash from operating activities and $392 million in free cash flow from continuing operations, showcasing solid financial health that supports future expansion plans.
- Fiscal 2026 Outlook: The company anticipates net sales for fiscal 2026 to range between $20.5 billion and $20.7 billion, with adjusted EPS expectations of $6.70 to $7.10, both exceeding market consensus, reflecting confidence in future growth.
See More
Dollar Tree Reports First Quarter Earnings Growth
- Earnings Performance: Dollar Tree's first-quarter net income reached $347.3 million, translating to earnings per share of $1.76, a significant increase from last year's $313.5 million and $1.47 per share, reflecting effective strategies in cost control and sales growth.
- Significant Revenue Growth: The company's quarterly revenue rose 7.2% year-over-year to $4.975 billion, up from $4.639 billion last year, indicating sustained consumer demand for low-priced goods and enhancing market competitiveness.
- Optimistic Future Guidance: The company projects next quarter's EPS between $1.00 and $1.15, with revenue expected to range from $4.8 billion to $4.9 billion, demonstrating management's confidence in future performance, which may attract more investor interest.
- Positive Annual Outlook: Dollar Tree anticipates full-year EPS between $6.70 and $7.10, with revenue expectations of $20.5 billion to $20.7 billion, showcasing the company's strong growth potential amid economic uncertainties.
See More
Dollar Tree Reports 7.2% Sales Growth in Q1
- Significant Sales Growth: Dollar Tree reported net sales of $5.0 billion for Q1, reflecting a 7.2% increase year-over-year, with comparable store sales rising 3.5%, primarily driven by a 4.5% increase in average ticket despite a 1.0% decline in traffic.
- Improved Profitability: Adjusted diluted EPS surged 38% to $1.74, while operating income rose 23% to $473 million, with operating margin expanding by 120 basis points, indicating successful cost management and market positioning strategies.
- Increased Shareholder Returns: The company returned $595 million to shareholders through share repurchases in Q1, demonstrating confidence in future growth, with $1.3 billion remaining under its repurchase authorization as of now.
- Optimistic Future Outlook: Dollar Tree raised its fiscal 2026 adjusted EPS outlook to between $6.70 and $7.10, and expects comparable store sales growth of 2.5% to 3.5% for Q2, reflecting sustained market demand and effective strategic execution.
See More
Dollar Tree Q1 Earnings Announcement Scheduled
- Earnings Release Date: Dollar Tree is set to announce its Q1 earnings on May 28 before market open, with a consensus EPS estimate of $1.55, reflecting a 23% year-over-year growth that showcases the company's resilience and growth potential amid economic pressures.
- Revenue Growth Expectations: The anticipated revenue for Q1 is $4.97 billion, representing a 50.2% year-over-year increase, which will further solidify Dollar Tree's leadership in the discount retail market, especially as consumers seek value in their purchases.
- Historical Performance Review: Over the past two years, Dollar Tree has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, indicating the company's financial stability and adaptability in the market.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 6 upward revisions and 9 downward revisions, while revenue estimates experienced 5 upward and 5 downward revisions, reflecting mixed market sentiments regarding the company's future performance, which could impact investor confidence.
See More
Dollar Tree Raises Annual Profit Forecast Amid Strong Demand
- Earnings Forecast Increase: Dollar Tree raised its fiscal 2026 adjusted earnings per share forecast to $6.70 to $7.10, up from the previous range of $6.50 to $6.90, reflecting the company's confidence in future performance.
- Stock Price Surge: The company's shares rose about 12% in premarket trading, driven by strong demand and cost-cutting efforts, indicating a positive market reaction to its profitability outlook.
- Changing Consumer Demand: Rising living costs due to higher gasoline prices linked to the war in Iran have led consumers to prioritize value, boosting sales at discount retailers like Dollar Tree, highlighting a favorable market environment for the company.
- Store Layout Enhancements: By updating store layouts, improving product selection, and enhancing seasonal displays, Dollar Tree has further improved the shopping experience, which is expected to continue driving sales growth and strengthening its competitive position.
See More
Dollar Tree Reports 7.3% Sales Growth in Q1
- Strong Sales Performance: Dollar Tree reported a 7.3% year-over-year sales increase to $4.98 billion in Q1, exceeding the consensus estimate of 3.2% same-store sales growth, indicating robust performance amid economic pressures.
- Same-Store Sales Growth: The Dollar Tree banner achieved a 3.5% increase in same-store sales, driven by a 4.5% rise in average ticket size, despite a 1.0% decline in traffic, reflecting sustained consumer demand for value.
- Gross Margin Improvement: Gross profit margin increased by 120 basis points, primarily due to higher mark-on, lower freight costs, and reduced shrink, although partially offset by increased tariffs and markdowns, showcasing effective cost management.
- Optimistic Future Outlook: Dollar Tree guided for full-year EPS of $6.70 to $7.10, surpassing the consensus of $6.67, reflecting confidence in strategic execution and new store openings, which are expected to further drive profit growth.
See More
Dollar Tree Q1 Earnings Beat Expectations
- Earnings Surprise: Dollar Tree reported a Q1 Non-GAAP EPS of $1.74, beating expectations by $0.19, which reflects the company's robust performance in the current economic climate and boosts investor confidence.
- Revenue Growth: The company achieved revenue of $4.98 billion, a 7.3% year-over-year increase, surpassing market expectations by $20 million, indicating sustained competitiveness in the retail sector.
- Strong Cash Flow: Dollar Tree generated $644 million in net cash from operating activities and $392 million in free cash flow from continuing operations, showcasing solid financial health that supports future expansion plans.
- Fiscal 2026 Outlook: The company anticipates net sales for fiscal 2026 to range between $20.5 billion and $20.7 billion, with adjusted EPS expectations of $6.70 to $7.10, both exceeding market consensus, reflecting confidence in future growth.
See More
Dollar Tree Reports First Quarter Earnings Growth
- Earnings Performance: Dollar Tree's first-quarter net income reached $347.3 million, translating to earnings per share of $1.76, a significant increase from last year's $313.5 million and $1.47 per share, reflecting effective strategies in cost control and sales growth.
- Significant Revenue Growth: The company's quarterly revenue rose 7.2% year-over-year to $4.975 billion, up from $4.639 billion last year, indicating sustained consumer demand for low-priced goods and enhancing market competitiveness.
- Optimistic Future Guidance: The company projects next quarter's EPS between $1.00 and $1.15, with revenue expected to range from $4.8 billion to $4.9 billion, demonstrating management's confidence in future performance, which may attract more investor interest.
- Positive Annual Outlook: Dollar Tree anticipates full-year EPS between $6.70 and $7.10, with revenue expectations of $20.5 billion to $20.7 billion, showcasing the company's strong growth potential amid economic uncertainties.
See More
Dollar Tree Reports 7.2% Sales Growth in Q1
- Significant Sales Growth: Dollar Tree reported net sales of $5.0 billion for Q1, reflecting a 7.2% increase year-over-year, with comparable store sales rising 3.5%, primarily driven by a 4.5% increase in average ticket despite a 1.0% decline in traffic.
- Improved Profitability: Adjusted diluted EPS surged 38% to $1.74, while operating income rose 23% to $473 million, with operating margin expanding by 120 basis points, indicating successful cost management and market positioning strategies.
- Increased Shareholder Returns: The company returned $595 million to shareholders through share repurchases in Q1, demonstrating confidence in future growth, with $1.3 billion remaining under its repurchase authorization as of now.
- Optimistic Future Outlook: Dollar Tree raised its fiscal 2026 adjusted EPS outlook to between $6.70 and $7.10, and expects comparable store sales growth of 2.5% to 3.5% for Q2, reflecting sustained market demand and effective strategic execution.
See More
