EarningsQ2 2026 Earnings Report
MX:DLTR Q2 2026 EPS Results
Actual EPS$50.72
Consensus EPS$21.55
Beat/MissBeat by +$29.18
One Year Ago EPS$14.47
MX:DLTR Q2 2026 Revenue Results
Actual Revenue$91.89B
Expected Revenue$91.32B
Beat/MissBeat by +$567.89M
YoY Revenue Growth+7.02%
Earnings Announcement Details
QuarterQ2 2026
Date08/27/2026
TimeBefore Open
Conference CallThursday, August 27, 2026
MX:DLTR Upcoming Earnings
Dollar Tree's next earnings date is estimated for November 24, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:DLTR Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported better-than-expected sales, positive traffic, broad-based category strength, improved store execution, favorable shrink, strong cash flow and raised full-year EPS guidance. The principal challenges were helium supply constraints, inflation, fuel-driven freight costs, expected back-half gross-margin pressure, ongoing tariff uncertainty and remaining store-execution opportunities, but management expressed confidence in the underlying business momentum and long-term strategy.Company Guidance
Strong Second-Quarter Sales and Comparable Growth
Net sales increased 7% to $4.9 billion, driven by a 3.7% increase in comparable store sales and a 3.3% contribution from net new store growth. Comparable sales exceeded the high end of the company's outlook.
Traffic Turned Positive Earlier Than Expected
Customer traffic increased 0.4%, improving sequentially from the first quarter and turning positive about one quarter earlier than previously expected. Average ticket increased 3.3%, supported by last year's pricing actions and higher multi-price penetration.
Broad-Based Category Performance
Consumables delivered a 5.8% comparable sales increase and discretionary delivered a 1.6% increase. Personal care and toys were notable outperformers, discretionary performed well despite helium-related constraints, and the company described consumables growth as exceptional.
Multi-Price Strategy Continued to Gain Adoption
Multi-price penetration increased approximately 400 basis points year-over-year to 17% of total sales. Management said the strategy provides flexibility to offer the right item at the right price while maintaining Dollar Tree's value proposition.
Improved Store Execution
The proportion of stores classified as being in the opportunity-for-improvement category declined to about one-third of the fleet from approximately half at Investor Day last October. The company reported progress in store conditions, consistency, in-stock levels, shoppability, recovery and store-level planning.
Favorable Shrink Performance
Shrink was favorable during the quarter and contributed to profitability improvement. Management said shrink was much better than last year and better than expected, with approximately two-thirds of the benefit from inventory results and one-third from a cumulative reserve adjustment.
Gross Margin and Operating Margin Expansion
Gross margin expanded 850 basis points to 42.9%, including a 680 basis point benefit from the net impact of tariff refunds, reinvestments and certain duties. Adjusted operating margin expanded 890 basis points to 14.1%, including a 650 basis point net benefit from those tariff-related items.
Underlying Earnings Beat Expectations
Adjusted diluted EPS was $2.70, including $1.31 from the combined net impact of tariff refunds, reinvestments and certain duties. Excluding that net tariff impact, underlying EPS was $1.39, ahead of the previously stated $1 to $1.15 outlook range. Management attributed the underlying beat to higher-than-expected sales, better margins, favorable shrink, modestly better freight, fixed-cost leverage and SG&A leverage.
Tariff Refund Proceeds Available for Customer-Facing Investments
Dollar Tree received approximately $383 million of tariff refund proceeds during the second quarter. The company is deploying the funds toward targeted pricing strategies, marketing, store operations, store conditions, assortment improvements, in-store signage and digital and marketing capabilities.
Inventory and Cash Flow Improvement
Inventory declined 9% year-over-year while sales increased 7%, resulting in a favorable inventory-to-sales spread. The company ended the quarter with $1.06 billion in cash and no commercial paper outstanding, generated $922 million in cash from operations and produced $675 million of free cash flow after $246 million of capital expenditures.
Share Repurchases and Reduced Share Count
The company repurchased 5.6 million shares for $605 million during the quarter. Over the last 12 months, Dollar Tree reduced its share count by approximately 8% and returned more than $1.8 billion to investors through share repurchases.
Raised Full-Year Earnings Outlook
The updated full-year outlook calls for net sales of $20.5 billion to $20.7 billion, comparable sales growth of 3% to 4%, and adjusted diluted EPS of $7.70 to $8.05. The EPS outlook includes an approximately $0.60 benefit from the net impact of tariff refunds.
Third-Quarter Sales Outlook Remains Positive
For the third quarter, Dollar Tree expects net sales of $5 billion to $5.1 billion and comparable store sales growth of 3% to 4%.
Lower Interest Expense Assumption
The company now expects full-year net interest expense of $70 million, which is $15 million lower than previously assumed, reflecting a higher average cash balance and higher interest income.
Community Investment Through Dollar Tree's Impact Fund
As part of the company's 40th anniversary, Dollar Tree committed $40 million through its Dollar Tree's Impact Fund to support local organizations, expand access to essentials, create opportunities and strengthen communities.
Confidence in Long-Term Operating Algorithm
Management said the second quarter was a proof point that its initiatives are working, citing a better assortment, better-run stores, improved marketing and earlier positive traffic. The company expressed confidence in its long-range earnings algorithm while not providing 2027 guidance.
Continued Store Refresh and Renovation Program
The company is continuing targeted store refreshes and renovations intended to make stores cleaner, brighter and easier to shop, while evaluating results and refining its approach.
Positive Customer Response Across Income Cohorts
Dollar Tree reported sales growth across all income cohorts, with household gains skewing toward middle- and higher-income households. Management said value, convenience and assortment breadth are resonating across income groups.
Marketing and Customer Engagement Expansion
The company strengthened marketing and customer outreach through its 40th anniversary celebration and broader value messaging. Management said the $1 anniversary price-point program created excitement and a halo effect, although it was small in scale and not a key driver of comparable sales.
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