Dollar Tree (DLTR) Q4 2026 earnings summary

Executive summary

• Q4 2025 net sales grew 9% year-over-year to $5.45B, with comparable sales up 5% driven by ticket growth and strong seasonal demand.

• Multi-price strategy expanded to 5,300 stores, now 16% of sales, driving higher sales productivity and basket size.

• Completed sale of Family Dollar in July 2025, refocusing on a single-banner Dollar Tree enterprise.

• Accelerated household growth, reaching a record 102 million U.S. households in Q4.

• Free cash flow for FY25 was ~$1.1B, with $1.548B returned via share repurchases.

Financial highlights

• Q4 gross margin expanded 150 bps to 39.1%, driven by higher merchandise margin, lower freight, and favorable mix.

• Adjusted diluted EPS for Q4 was $2.56, up 21% year-over-year; FY25 adjusted diluted EPS increased 13% to $5.75.

• Adjusted operating margin up 20 bps to 12.8%; adjusted operating income up 10.7%.

• Inventory down 7% year-over-year, with sales up 9%, improving inventory turns and free cash flow.

• Returned $1.6B to shareholders via share repurchases in FY25, reducing shares outstanding by 8%.

Outlook and guidance

• FY26 net sales expected at $20.5B–$20.7B, with 3%–4% comparable sales growth.

• Adjusted diluted EPS guidance for FY26 is $6.50–$6.90, representing high teens earnings growth.

• Targeting 400 new store openings and 75 closings in FY26; CapEx planned at $1.1B–$1.2B.

• Gross margin expected to be roughly flat, with improved markdowns offset by higher freight.

• Corporate SG&A targeted at $470M–$490M for 2026, on track for 2% of sales by 2028.