Dollar Tree Inc. (NASDAQ:DLTR) stock climbed on Monday after the retailer released mixed quarterly results and an upbeat forecast.
- The company reported:
- Q4 adjusted earnings per share of $2.56, beating the analyst consensus estimate of $2.52 and within the management guidance of $2.40 to $2.60.
- Quarterly sales of $5.45 billion were almost in line with the Street view of $5.46 billion and management guidance range of $5.4 billion to $5.5 billion.
- Sales jumped 9%.
- Same-store net sales increased 5%, driven by a 6.3% increase in average ticket, partially offset by a 1.2% decline in traffic.
Dollar Tree Margin Analysis
Gross profit increased 13.3%, and gross profit margin increased 150 basis points to 39.1%.
The improvement in gross margin was primarily driven by improved mark-up from pricing initiatives and lower domestic and import freight costs. These benefits were partially offset by higher tariff costs.
Operating income increased 30.2%. Adjusted operating income increased 10.7%.
DLTR Store Performance
Dollar Tree reported fourth-quarter comparable store net sales growth of 5.0% and 5.3% for fiscal year 2025.
The company opened 402 new Dollar Tree stores during 2025. It also converted or added about 2,400 stores to the Dollar Tree 3.0 multi-price format, ending the year with approximately 5,300 multi-price stores.
DLTR Outlook
Dollar Tree expects fiscal 2026 adjusted earnings of $6.50-$6.90 per share, versus the consensus of $6.69 per share.
The retailer expects fiscal 2026 sales of $20.5 billion-$20.7 billion versus the consensus of $20.69 billion.
The company expects first-quarter 2026 adjusted earnings of $1.45-$1.60 per share, and sales between $4.9 billion and $5 billion compared with Wall Street estimates of $1.55 and $4.96 billion.
DLTR Price Action: Dollar Tree shares were up 4.57% at $112.37 at the time of publication on Monday, according to Benzinga Pro data.
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