Dollar Tree stock falls despite earnings beat

Investing.com -- Dollar Tree Inc. (NASDAQ: DLTR) reported second-quarter results that exceeded analyst expectations, but shares have dropped around 3% premarket as investors focused on weaker-than-expected third-quarter guidance.

The discount retailer posted adjusted earnings per share of $2.70, significantly surpassing the analyst consensus of $1.11. Revenue reached $4.9 billion, topping the estimate of $4.85 billion and representing a 7.0% increase YoY.

Comparable store net sales rose 3.7%, driven by a 3.3% increase in average ticket and a 0.4% increase in traffic. The quarter's results included a $1.31 per share benefit related to the net impact of tariff refunds.

However, the company's third quarter guidance disappointed investors. Dollar Tree expects adjusted EPS of $0.80 to $0.95, with a midpoint of $0.88 that includes an approximate $0.50 impact related to tariff refund reinvestments. It is below the consensus estimate of $1.39.

The company projects third-quarter comparable store net sales growth of 3.0% to 4.0% on revenue of $5.0 billion to $5.1 billion.

"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."

For the full fiscal year 2026, Dollar Tree raised its adjusted EPS outlook to a range of $7.70 to $8.05, with a midpoint of $7.88 that exceeds the analyst consensus of $7.04. This guidance includes an approximate $0.60 benefit related to the net impact of tariff refunds. The company expects full-year net sales of $20.5 billion to $20.7 billion based on comparable store net sales growth of 3% to 4%.

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