EarningsQ1 2026 Earnings Report
MX:DLTR Q1 2026 EPS Results
Actual EPS$29.53
Consensus EPS$26.03
Beat/MissBeat by +$3.50
One Year Ago EPS$21.38
MX:DLTR Q1 2026 Revenue Results
Actual Revenue$84.44B
Expected Revenue$84.18B
Beat/MissBeat by +$263.65M
YoY Revenue Growth+7.24%
Earnings Announcement Details
QuarterQ1 2026
Date05/28/2026
TimeBefore Open
Conference CallThursday, May 28, 2026
MX:DLTR Upcoming Earnings
Dollar Tree's next earnings date is estimated for November 24, 2026, based on past reporting schedules.
Q1 2026 Earnings Call Audio
MX:DLTR Q1 2026 Earnings Call
0:00 / 0:00
Q1 2026 Earnings Slide Deck
Q1 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed solid underlying momentum with strong top-line growth, significant margin expansion (gross margin +120 bps, operating margin +110 bps) and a 38% increase in adjusted EPS, supported by inventory improvement, shrink reduction and strong cash generation/repurchases. Management acknowledged persistent headwinds—traffic down 1%, higher fuel and tariff uncertainty, modest SG&A deleverage due to marketing and liability costs, and ongoing variability in store execution—but emphasized operational levers (multi-price assortment, gold store standards, targeted marketing) and a prudent, conservative outlook. On balance the positive operational and financial developments materially outweigh the challenges, though execution and macro volatility remain watch points.Company Guidance
Top-line Growth
Net sales increased 7.2% year-over-year to $5.0 billion in Q1 FY2026, driven by 3.5% comparable store sales and a 3.7% contribution from new stores.
Strong Profitability and EPS Beat
Adjusted diluted EPS rose 38% year-over-year to $1.74, above the high end of the prior outlook; adjusted operating margin expanded 110 basis points to 9.5%.
Gross Margin Expansion
Gross margin expanded 120 basis points year-over-year, driven primarily by higher merchandise margin, freight favorability and lower shrink (partially offset by higher tariffs and markdowns).
Ticket and Category Strength
Average ticket grew 4.5% in the quarter, with comp gains across categories (discretionary +3.9% with notable strength in toys and personal care; consumables +3.2%), aided by multi-price assortment expansion.
Shrink Improvement and Operational Execution
Company reported measurable shrink improvement driven by operational initiatives (gold store standards, nonnegotiable audits, product protection and focused training), contributing to margin upside.
Inventory and Working Capital
Inventory declined 9% year-over-year while sales grew 7.2%, producing a favorable inventory-to-sales spread and supporting fresher assortments and working capital efficiency.
Cash Generation and Capital Allocation
Generated $644M in cash from operations, $392M free cash flow after $253M CapEx, ended Q1 with $1.0B cash and no commercial paper outstanding; repurchased ~5.5M shares for $595M in Q1 (additional $98M subsequent), reducing share count ~8% over 12 months and returning $1.7B to investors.
Upgraded Fiscal 2026 Outlook
Updated FY2026 guidance: net sales $20.5B–$20.7B, comparable store sales growth 3%–4%, adjusted diluted EPS $6.70–$7.10 (incorporates lower share count through date).
Progress on Store Standards and Assortment Strategy
Notable progress in fleet execution: percentage of below-standard stores reduced materially (from ~42% previously to under one-third), and multi-price assortment continues to drive relevance, ticket growth and incremental strength in everyday categories.
Marketing Capabilities Emerging
Company is scaling targeted, data-driven marketing (test-and-learn approach) to drive incremental trips and ROI; management views marketing as a growing enabler of frequency and customer engagement.
MX:DLTR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed