Dollar Tree (DLTR) investor relations material

Executive summary

• Net sales grew 7.0% year-over-year to $4.9 billion in Q2 2026, with comparable store sales up 3.7% driven by a 3.3% increase in average ticket and 0.4% growth in customer traffic.

• Diluted EPS was $2.70, including a $1.31 benefit from tariff refunds; operating income margin expanded 900 basis points, with a 650 basis point benefit from tariff refunds.

• Gross profit surged 33.4% to $2,094.3 million, benefiting from $368.7 million in tariff refunds and improved shrink and occupancy leverage.

• Opened 75 new stores and converted or added about 710 stores to the multi-price format, ending the quarter with 9,436 stores and 6,600 multi-price stores.

• Returned $605 million to shareholders via share repurchases in Q2; generated $922 million in net cash from operating activities and $675 million in free cash flow.

Financial highlights

• Gross profit margin increased 850 basis points to 42.9%, including a 680 basis point benefit from tariff refunds.

• Operating income was $690 million, up 198.7% year-over-year; adjusted operating income margin expanded 890 basis points to 14.1%.

• SG&A expense rate decreased by 40 basis points to 29.2% of revenue, aided by lower payroll and consulting fees.

• Ended Q2 with $1.1 billion in cash and no commercial paper outstanding; repurchased $605 million in shares.

• Net sales per selling square foot increased to $243 from $237 year-over-year.

Outlook and guidance

• Fiscal 2026 net sales expected between $20.5 billion and $20.7 billion, with comparable store net sales growth of 3% to 4%.

• Fiscal 2026 adjusted diluted EPS outlook raised to $7.70–$8.05, including a $0.60 benefit from tariff refunds.

• Q3 2026 net sales projected at $5.0–$5.1 billion, with adjusted EPS of $0.80–$0.95, including a $0.50 impact from tariff refund reinvestments.

• Plans for approximately 400 new store openings and 75 closings in fiscal 2026; capital expenditures expected at $1.1B–$1.2B.

• No additional tariff refunds assumed for the remainder of the year.