Dollar Tree Inc. stock fell Thursday after the company reported second-quarter results, with adjusted diluted earnings of $2.70 per share including a $1.31 benefit from tariff refunds; excluding that benefit, underlying earnings were $1.39 per share, topping the $1.14 consensus estimate. Sales rose 7% year over year to $4.89 billion, beating the $4.86 billion estimate. Comparable-store net sales increased 3.7%, driven by a 3.3% increase in average ticket and 0.4% traffic growth. Gross margin expanded 850 basis points to 42.9%, with tariff refunds contributing 680 basis points. During the earnings call, Chief Financial Officer Stuart Glendinning said elevated fuel prices are driving a "very, very meaningful" increase in freight surcharges, warning the pressure will persist as long as fuel costs remain high, contributing to an expected decline in fourth-quarter gross margin. Dollar Tree raised its fiscal 2026 adjusted earnings outlook to $7.70 to $8.05 per share from $6.70 to $7.10, topping the $7.04 consensus, and maintained its annual sales forecast of $20.5 billion to $20.7 billion. For the third quarter, the company expects adjusted earnings of 80 cents to 95 cents per share, including a 50-cent impact from reinvesting tariff refunds, trailing the $1.40 consensus, with projected sales of $5 billion to $5.1 billion.
Dollar Tree IncFuel prices driving higher freight surcharges, pressuring margins and Q4 outlook.
