Dollar Tree Q2 profit beats on tariff refunds, higher comparable sales

Dollar Tree

27/08/2026 11:42

Overview
US discount retailer's Q2 sales rose 7%, slightly beating analyst expectations
Adjusted EPS for Q2 more than doubled and beat analyst expectations
Company repurchased $605 mln in shares during Q2

Outlook
Dollar Tree sees fiscal 2026 net sales of $20.5 bln to $20.7 bln
Company expects fiscal 2026 adjusted EPS of $7.70 to $8.05 including $0.60 tariff refund benefit
Dollar Tree expects Q3 net sales of $5.0 bln to $5.1 bln and EPS of $0.80 to $0.95

Result Drivers
TARIFF REFUNDS - Co said net impact of tariff refunds contributed 680 basis points to gross margin and $1.31 to diluted EPS
SALES METRICS - Comparable store net sales growth driven by 3.3% increase in average ticket and 0.4% increase in traffic
OPERATIONAL IMPROVEMENTS - Margin expansion aided by lower tariff rates, favorable shrink, and occupancy leverage, partially offset by sales mix

Company press release: ID:nBw86Z4Bta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$4.89 bln
$4.86 bln (22 Analysts)
Q2 Adjusted EPS
Beat
$2.70
$1.14 (25 Analysts)
Q2 Net Income
 
$514.50 mln
 
Q2 Same Store Sales Growth
 
3.70%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 15 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the discount stores peer group is "buy."
Wall Street's median 12-month price target for Dollar Tree Inc is $130.50, about 1.3% below its August 26 closing price of $132.18
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Aug 26 - Kohl's sales fall as retailer cites 'persistent financial pressures' on shoppers
Aug 25 - Citi Trends Q2 sales rise, lifts 2026 outlook
Aug 26 - Bath & Body Works forecasts wider-than-expected third quarter sales decline on weak store traffic

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)