Overview

• US value retailer's Q1 net sales rose 7.2%, slightly beating analyst expectations

• Adjusted EPS for Q1 increased 38% to $1.74, beating analyst expectations

• Company returned $595 mln to shareholders through Q1 share repurchases

Outlook

• Dollar Tree raises fiscal 2026 adjusted EPS outlook to $6.70-$7.10

• Company expects Q2 net sales of $4.8 bln-$4.9 bln and adjusted EPS of $1.00-$1.15

• Dollar Tree sees fiscal 2026 comparable store net sales growth of 3%-4%

Result Drivers

• HIGHER AVERAGE TICKET - Comparable store net sales growth was driven by a 4.5% increase in average ticket, partially offset by a 1.0% decline in traffic

• GROSS MARGIN IMPROVEMENT - Gross profit margin increased 120 basis points, primarily due to higher mark-on, lower freight costs, and lower shrink, partially offset by higher tariff costs and higher markdowns

• STORE EXPANSION - Opened 113 new stores and converted or added about 630 stores to the multi-price format, ending the quarter with approximately 5,900 multi-price stores

Company press release: ID:nBwc8gG8ka

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Beat*	$4.97 bln	$4.96 bln (21 Analysts)
Q1 Adjusted EPS	Beat	$1.74	$1.54 (24 Analysts)
Q1 Net Income		$347.3 mln
Q1 Same Store Sales Growth		3.5%

*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 9 "strong buy" or "buy", 12 "hold" and 7 "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 $115.00, about 20% above its May 27 closing price of $95.87

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 18 three months ago

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