TLDR
- Dollar Tree posted Q2 adjusted EPS of $2.70, crushing the $1.11 analyst estimate
- Q2 revenue hit $4.89 billion, up 7% year-over-year, beating the $4.86 billion estimate
- Comparable store sales rose 3.7%, helped by a 3.3% increase in average ticket
- Q3 EPS guidance of $0.80-$0.95 came in well below the $1.39 analyst consensus
- Full-year adjusted EPS outlook raised to $7.70-$8.05, topping the $7.04 consensus
Dollar Tree (DLTR) stock dropped around 3% in premarket trading on Thursday despite the discount retailer posting a strong second quarter. Investors were not impressed with what came next.
The company reported Q2 adjusted EPS of $2.70, well above the analyst consensus of $1.11. Revenue came in at $4.89 billion, a 7% increase year-over-year and ahead of the $4.86 billion estimate.
Comparable store net sales rose 3.7% in the quarter. That was driven by a 3.3% increase in average ticket size and a 0.4% uptick in traffic.
DOLLAR TREE $DLTR Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $4.9B (Est. $4.86B) 🟢; +7% YoY
🔹 Adj. EPS: $2.70; incl. $1.31 tariff refunds
🔹 Comp Store Net Sales: +3.7%
🔹 Oper Margin: 14.1%; +900 bps (650 bps refunds)FY26 Guide:
🔹 Adj. EPS: $7.70-$8.05 (Est. $7.04) 🟢
🔹… pic.twitter.com/iOxLR6HSvf— Wall St Engine (@wallstengine) August 27, 2026
It is worth noting the Q2 results included a $1.31 per share benefit tied to tariff refunds. Strip that out and the picture looks a bit different.
CEO Mike Creedon pointed to the traffic trends as a positive sign. “What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip,” he said.
Q3 Guidance Disappoints
The sell-off came down to one thing: Q3 guidance. Dollar Tree guided for adjusted EPS of $0.80 to $0.95 for the third quarter, with a midpoint of $0.88. That is well below the analyst consensus of $1.39.
The company flagged an approximate $0.50 per share impact in Q3 related to tariff refund reinvestments, which is eating into the near-term profit outlook.
On the revenue side, Dollar Tree expects Q3 net sales of $5.0 billion to $5.1 billion, with comparable store net sales growth of 3.0% to 4.0%.
Full-Year Outlook Raised
Despite the Q3 miss, Dollar Tree raised its full-year 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.
The full-year guidance includes an approximate $0.60 benefit related to tariff refund net impacts.
Annual net sales guidance was held steady at $20.5 billion to $20.7 billion. That is based on comparable store net sales growth of 3% to 4% for the full year.
The consensus estimate for full-year net sales sits at $20.65 billion, putting Dollar Tree’s forecast roughly in line with expectations on the top line.
Dollar Tree held its annual sales forecast for the second consecutive quarter. The full-year EPS raise was the headline upgrade in Thursday’s report.
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