Dollar Tree (DLTR) DLTR Q2 Financial Results Summary
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Dollar Tree, Inc. (DLTR) Q2 2026: Strong Growth and EPS Surge — Positive Outlook
Dollar Tree, Inc. (NASDAQ: DLTR) reported impressive financial results for its second quarter ended August 1, 2026, showcasing significant growth compared to the prior year. The company achieved total sales of $4.9 billion, reflecting an increase of $320 million or +7.0% year-over-year (YoY). This growth was driven by a 3.7% increase in comparable store net sales, building on a robust 6.5% growth from the previous year.
Key Financial Metrics:
- Total Sales: $4.9 billion (+7.0% YoY)
- Comparable Store Net Sales Growth: 3.7% (compared to 6.5% last year)
- Diluted EPS: $2.70 (+260.0% YoY)
- Operating Income: $690 million (+198.7% YoY)
- Adjusted Operating Income Margin: Expanded by 890 basis points
This quarter is undoubtedly a positive one for shareholders, as the substantial increase in both revenue and earnings per share (EPS) indicates strong operational performance and effective cost management. The diluted EPS of $2.70 includes a notable $1.31 benefit from tariff refunds, which significantly contributed to the overall earnings growth.
Operational Highlights:
- Average Ticket Increase: 3.3%
- Traffic Increase: 0.4%
- Operating Income Margin: Expanded by 900 basis points to 14.1%
- Share Repurchases: $605 million returned to shareholders through share buybacks
The company also reported a gross profit margin increase of 850 basis points to 42.9%, aided by lower tariff rates and improved operational efficiencies. Selling, general, and administrative expenses decreased slightly to 29.2% of total revenue, reflecting effective cost control measures.
Shareholder Returns and Future Guidance:
Dollar Tree returned $605 million to shareholders through share repurchases during the quarter, demonstrating its commitment to returning value to investors. The company has also increased its fiscal 2026 adjusted EPS outlook to a range of $7.70 to $8.05, which includes an approximate $0.60 benefit related to tariff refunds.
For the upcoming third quarter of fiscal 2026, Dollar Tree anticipates comparable net sales growth of 3% to 4% and expects adjusted EPS to be in the range of $0.80 to $0.95, including a $0.50 impact from tariff refund reinvestments.
Conclusion and Forward-Looking Catalysts:
Investors should keep an eye on Dollar Tree's continued expansion efforts, as the company opened 75 new stores during the quarter and converted approximately 710 stores to the multi-price format. The focus on enhancing the customer experience and optimizing store operations will be crucial for sustaining growth.
As Dollar Tree navigates the evolving retail landscape, its ability to maintain positive traffic trends and manage costs effectively will be key drivers of future performance. The upcoming quarter will be critical for assessing the impact of these strategies on sales and profitability.
Note: The following tables are in millions.
| 13 Weeks Ended | August 1, 2026 | August 2, 2025 | 26 Weeks Ended | August 1, 2026 | August 2, 2025 |
|---|---|---|---|---|---|
| Net sales | $4,857.4 | $4,540.2 | $9,872.0 | $9,214.0 | |
| Other revenue | 4.7 | 3.6 | 10.0 | 6.8 | |
| Total revenue | 4,862.1 | 4,543.8 | 9,882.0 | 9,220.8 | |
| Cost of sales | 2,757.7 | 2,904.1 | 5,914.4 | 5,922.2 | |
| Selling, general and administrative expenses | 1,426.4 | 1,350.9 | 2,831.0 | 2,634.3 | |
| Total costs and expenses | 4,184.1 | 4,255.0 | 8,745.4 | 8,556.5 | |
| Operating income | 678.0 | 288.8 | 1,136.6 | 664.3 | |
| Interest expense | 17.8 | 22.8 | 34.1 | 45.5 | |
| Other income | (14.3) | (0.4) | (19.2) | (62.7) | |
| Income before income taxes | 674.5 | 266.4 | 1,121.7 | 680.9 | |
| Income tax expense | 160.8 | 61.5 | 259.7 | 162.8 | |
| Income from continuing operations | $513.7 | $204.9 | $862.0 | $518.1 | |
| Discontinued operations, net of tax | — | 32.9 | — | 62.8 | |
| Net income | $513.7 | $237.8 | $862.0 | $580.9 | |
| Net earnings per share - basic | $2.70 | $0.75 | $4.45 | $2.23 | |
| Net earnings per share - diluted | $2.70 | $0.91 | $4.45 | $2.53 | |
| Weighted-average shares used to compute net income per share: | Basic: 190.4 | Diluted: 207.0 | Basic: 193.4 | Diluted: 210.3 | |
| Adjusted operating margin | 14.1% | 5.1% | 11.8% | 6.7% | |
| Effective tax rate | 25.0% | 25.5% | 25.0% | 25.8% |
| ASSETS | August 1, 2026 | January 31, 2026 | August 2, 2025 |
|---|---|---|---|
| Cash and cash equivalents | $1,058.1 | $717.8 | $666.3 |
| Merchandise inventories | 2,452.2 | 2,495.4 | 2,683.4 |
| Other current assets | 234.3 | 233.0 | 264.2 |
| Total current assets | 3,744.6 | 3,446.2 | 3,613.9 |
| Restricted cash | 43.7 | 42.9 | 77.5 |
| Property, plant and equipment, net | 5,100.9 | 4,959.6 | 4,652.4 |
| Operating lease right-of-use assets | 4,559.1 | 4,435.1 | 4,393.2 |
| Goodwill | 422.1 | 423.2 | 422.4 |
| Deferred income taxes, net | 1.7 | 1.0 | 85.5 |
| Other assets | 157.5 | 158.2 | 140.0 |
| Total assets | $14,029.5 | $13,466.0 | $13,384.3 |
| Short-term borrowings | — | — | 299.5 |
| Current portion of operating lease liabilities | 1,011.0 | 1,000.2 | 976.7 |
| Accounts payable | 1,626.5 | 1,530.7 | 1,593.8 |
| Other current liabilities | 665.6 | 697.7 | 616.9 |
| Total current liabilities | 3,303.1 | 3,228.6 | 3,486.9 |
| Long-term debt, net | 2,933.5 | 2,431.7 | 2,429.7 |
| Operating lease liabilities | 3,726.3 | 3,623.7 | 3,636.8 |
| Deferred income taxes, net | 347.9 | 153.3 | — |
| Income taxes payable | 23.4 | 29.7 | 27.6 |
| Other liabilities | 270.1 | 244.3 | 198.8 |
| Total liabilities | 10,604.3 | 9,711.3 | 9,779.8 |
| Shareholders' equity | 3,425.3 | 3,754.9 | 3,605.1 |
| Total liabilities and shareholders' equity | $14,029.5 | $13,466.0 | $13,384.3 |
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