Dollar Tree Shares Slide Despite Q2 Earnings Beat And Upgraded Outlook

Dollar Tree Inc. (NASDAQ:DLTR) posted second-quarter results well ahead of analyst expectations, but shares dropped more than 6% in premarket trading Wednesday.

Adjusted EPS was $0.77, beating consensus of $0.40. Revenue rose 12.3% year-over-year to $4.6 billion, above expectations of $4.47 billion. Same-store sales grew 6.5%, supported by a 3.0% increase in customer traffic and a 3.4% rise in average ticket size.

The company said results included about $0.20 of benefit from inventory mark-on timing and tariffs. Gross margin expanded 20 basis points to 34.4%, helped by stronger pricing and lower freight costs, partly offset by higher tariffs and shrink.

Dollar Tree raised its FY25 net sales outlook to $19.3-$19.5 billion from $18.5-$19.1 billion and lifted its adjusted EPS forecast to $5.32-$5.72 from $5.15-$5.65. Comparable sales are expected to rise 4% to 6%.