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Dollar Tree's Q4 Earnings Beat Estimates, Sales Rise on Higher Comps
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Key Takeaways
DLTR posted Q4 FY25 EPS of $2.56, up 21.3% YoY and above estimates as sales rose and margins improved.
DLTR sales rose 9% to $5.45B as comps grew 5%, driven by a 6.3% rise in average ticket.
DLTR expects FY26 sales of $20.5B-$20.7B with 3-4% comps growth and plans about 400 store openings.
Dollar Tree, Inc. (DLTR - Free Report) posted solid fourth-quarter fiscal 2025 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Both metrics increased year over year. Quarterly results benefited from the sturdy execution of its strategic initiatives. The company posted its 20th straight year of positive same-store sales.
Dollar Tree’s adjusted earnings per share (EPS) from continuing operations jumped 21.3% year over year to $2.56 and beat the Zacks Consensus Estimate of $2.53.
Shares of Dollar Tree have gained more than 5% in the pre-market session after releasing its fourth-quarter fiscal 2025 results. Shares of this Zacks Rank #3 (Hold) company have gained 9.9% in the past three months compared with the industry’s 11.2% growth.
Net sales increased 9% year over year to $5.45 billion compared with the Zacks Consensus Estimate of $5.47 billion. Same-store sales (comps) grew 5% year over year. The company’s comps benefited from a 6.3% increase in the average ticket, partly offset by a 1.2% lower traffic.
Dollar Tree, Inc. Price, Consensus and EPS Surprise
The gross profit jumped 13.3% year over year to $2.1 billion, with a 150-basis-point (bps) gross margin expansion to 39.1%. This increase was fueled by improved mark-on from pricing actions, and reduced domestic and import freight costs, somewhat offset by increased tariff costs. We estimated a year-over-year increase of 10% in gross profit and a 40-bps expansion in the gross margin.
Selling, general and administrative (SG&A) costs were 26.9% of sales, down 10 bps from the year-earlier quarter. The decline was mainly owing to prior-year software impairments and contract termination costs, and reduced stock compensation, somewhat offset by increased store payroll aiding pricing initiatives, increased general liability claims and higher incentive compensation. On an adjusted basis, excluding strategic review costs, software impairments and termination costs, and the year-ago accelerated vesting of certain stock awards, the metric grew 170 basis points to 26.8% of total revenues.
Adjusted operating income jumped 10.7% year over year to $695 million. The operating margin rose 20 basis points to 12.8%.
DLTR’s Financial Health
Dollar Tree ended the fiscal fourth quarter with cash and cash equivalents of $717.8 million, no borrowings under its credit facilities and no commercial paper outstanding. As of Jan. 31, 2025, net merchandise inventories were $2.5 billion, down 7.4% year over year. It had a net long-term debt, excluding the current portion, of $2.43 billion and shareholders’ equity of $3.8 billion as of Jan. 31, 2026.
In fourth-quarter fiscal 2025, the company repurchased 2.2 million shares for $232 million. Dollar Tree had $1.8 billion remaining under the $2.5 billion repurchase authorization as of Jan. 31, 2026.
Dollar Tree’s Store Update
In fiscal 2025, the company opened 402 Dollar Tree stores and converted or added nearly 2,400 stores to the Dollar Tree 3.0 multi-price format, ending the year with approximately 5,300 multi-price stores. As of Jan. 31, 2026, DLTR operated 9,282 stores.
Q1 & FY26 Guidance by DLTR
The company projects net sales from continuing operations of $20.5-$20.7 billion, supported by comps growth of 3-4% compared with 4-6% mentioned earlier. Adjusted EPS from continuing operations is projected to be $6.50-$6.90, including the year-to-date share repurchase impacts. It projects approximately 400 store openings and 75 closings for the fiscal year. DLTR reported revenues of $19.4 billion and adjusted EPS of $5.75 in fiscal 2025.
For the first quarter of fiscal 2026, the company projects net sales from continuing operations between $4.9 billion and $5 billion, supported by expected comparable-store sales growth of 3-4%. Adjusted EPS is anticipated to come within the $1.45-$1.60 range.
Key Retail Stock Picks
Deckers Outdoors Corporation (DECK - Free Report) , together with its subsidiaries, designs, markets, and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities in the United States and internationally. At present, Deckers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DECK’s current fiscal-year sales and earnings indicates growth of 8.9% and 8.5%, respectively, from the year-ago figures. DECK delivered a trailing four-quarter earnings surprise of 36.9%, on average.
American Eagle Outfitters, Inc. (AEO - Free Report) operates as a specialty retailer of casual apparel, accessories and footwear for men and women. At present, AEO sports a Zacks Rank of 1.
The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings indicates growth of 4.11% and 16%, respectively, from the year-ago figures. American Eagle delivered a trailing four-quarter earnings surprise of 37.6%, on average.
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, FIVE sports a Zacks Rank of 1.
The consensus estimate for FIVE’s current fiscal-year sales and earnings implies growth of 22.1% and 25%, respectively, from the year-ago figures. FIVE has delivered a trailing four-quarter earnings surprise of 62.1 %, on average.
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Dollar Tree's Q4 Earnings Beat Estimates, Sales Rise on Higher Comps
Key Takeaways
Dollar Tree, Inc. (DLTR - Free Report) posted solid fourth-quarter fiscal 2025 results, wherein the bottom line surpassed the Zacks Consensus Estimate. Both metrics increased year over year. Quarterly results benefited from the sturdy execution of its strategic initiatives. The company posted its 20th straight year of positive same-store sales.
Dollar Tree’s adjusted earnings per share (EPS) from continuing operations jumped 21.3% year over year to $2.56 and beat the Zacks Consensus Estimate of $2.53.
Shares of Dollar Tree have gained more than 5% in the pre-market session after releasing its fourth-quarter fiscal 2025 results. Shares of this Zacks Rank #3 (Hold) company have gained 9.9% in the past three months compared with the industry’s 11.2% growth.
DLTR’s Quarterly Performance: Key Metrics & Insights
Net sales increased 9% year over year to $5.45 billion compared with the Zacks Consensus Estimate of $5.47 billion. Same-store sales (comps) grew 5% year over year. The company’s comps benefited from a 6.3% increase in the average ticket, partly offset by a 1.2% lower traffic.
Dollar Tree, Inc. Price, Consensus and EPS Surprise
Dollar Tree, Inc. price-consensus-eps-surprise-chart | Dollar Tree, Inc. Quote
The gross profit jumped 13.3% year over year to $2.1 billion, with a 150-basis-point (bps) gross margin expansion to 39.1%. This increase was fueled by improved mark-on from pricing actions, and reduced domestic and import freight costs, somewhat offset by increased tariff costs. We estimated a year-over-year increase of 10% in gross profit and a 40-bps expansion in the gross margin.
Selling, general and administrative (SG&A) costs were 26.9% of sales, down 10 bps from the year-earlier quarter. The decline was mainly owing to prior-year software impairments and contract termination costs, and reduced stock compensation, somewhat offset by increased store payroll aiding pricing initiatives, increased general liability claims and higher incentive compensation. On an adjusted basis, excluding strategic review costs, software impairments and termination costs, and the year-ago accelerated vesting of certain stock awards, the metric grew 170 basis points to 26.8% of total revenues.
Adjusted operating income jumped 10.7% year over year to $695 million. The operating margin rose 20 basis points to 12.8%.
DLTR’s Financial Health
Dollar Tree ended the fiscal fourth quarter with cash and cash equivalents of $717.8 million, no borrowings under its credit facilities and no commercial paper outstanding. As of Jan. 31, 2025, net merchandise inventories were $2.5 billion, down 7.4% year over year. It had a net long-term debt, excluding the current portion, of $2.43 billion and shareholders’ equity of $3.8 billion as of Jan. 31, 2026.
In fourth-quarter fiscal 2025, the company repurchased 2.2 million shares for $232 million. Dollar Tree had $1.8 billion remaining under the $2.5 billion repurchase authorization as of Jan. 31, 2026.
Dollar Tree’s Store Update
In fiscal 2025, the company opened 402 Dollar Tree stores and converted or added nearly 2,400 stores to the Dollar Tree 3.0 multi-price format, ending the year with approximately 5,300 multi-price stores. As of Jan. 31, 2026, DLTR operated 9,282 stores.
Q1 & FY26 Guidance by DLTR
The company projects net sales from continuing operations of $20.5-$20.7 billion, supported by comps growth of 3-4% compared with 4-6% mentioned earlier. Adjusted EPS from continuing operations is projected to be $6.50-$6.90, including the year-to-date share repurchase impacts. It projects approximately 400 store openings and 75 closings for the fiscal year. DLTR reported revenues of $19.4 billion and adjusted EPS of $5.75 in fiscal 2025.
For the first quarter of fiscal 2026, the company projects net sales from continuing operations between $4.9 billion and $5 billion, supported by expected comparable-store sales growth of 3-4%. Adjusted EPS is anticipated to come within the $1.45-$1.60 range.
Key Retail Stock Picks
Deckers Outdoors Corporation (DECK - Free Report) , together with its subsidiaries, designs, markets, and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities in the United States and internationally. At present, Deckers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DECK’s current fiscal-year sales and earnings indicates growth of 8.9% and 8.5%, respectively, from the year-ago figures. DECK delivered a trailing four-quarter earnings surprise of 36.9%, on average.
American Eagle Outfitters, Inc. (AEO - Free Report) operates as a specialty retailer of casual apparel, accessories and footwear for men and women. At present, AEO sports a Zacks Rank of 1.
The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings indicates growth of 4.11% and 16%, respectively, from the year-ago figures. American Eagle delivered a trailing four-quarter earnings surprise of 37.6%, on average.
Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, FIVE sports a Zacks Rank of 1.
The consensus estimate for FIVE’s current fiscal-year sales and earnings implies growth of 22.1% and 25%, respectively, from the year-ago figures. FIVE has delivered a trailing four-quarter earnings surprise of 62.1 %, on average.