Dollar Tree raised its fiscal 2026 adjusted earnings guidance to $7.70-$8.05 per share, including an estimated 60-cent benefit from tariff refunds, after second-quarter net sales rose 7% year over year to $4.89 billion and comparable-store sales increased 3.7%. Adjusted earnings of $1.39 per share, excluding the $1.31-per-share net tariff-refund benefit, rose 80.5% from 77 cents and topped the Zacks Consensus Estimate of $1.13. Gross margin expanded 850 basis points to 42.9%, but about 680 basis points came from the net impact of tariff refunds; the company received $383 million in refunds and plans to reinvest about $210 million in pricing, marketing, store operations and store conditions. Third-quarter adjusted earnings guidance of 80-95 cents includes an estimated 50-cent negative impact from those reinvestments, while net sales for the year are still expected at $20.5-$20.7 billion with comparable-store sales growth of 3-4%. DLTR shares have fallen 17.9% in the past four weeks and trade at 14.1X forward 12-month earnings, below the Zacks sub-industry at 27.04X and the Zacks sector at 21.5X.
Dollar Tree IncDollar Tree raised fiscal 2026 adjusted earnings guidance and posted Q2 adjusted EPS of $1.39 that topped estimates.
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