Shares of Dollar Tree Inc. were climbing around 13 percent in the pre-market activity on Nasdaq, after the discount retailer on Thursday issued positive second-quarter comparable store sales outlook and raised fiscal 2026 earnings view on strong demand, after reporting higher first-quarter results. Separately, Dollar Tree announced a new partnership with commerce platform DoorDash Inc. to offer on-demand delivery.
Under the deal with DoorDash, consumers can now shop more than 10,000 products from Dollar Tree on DoorDash, from pantry staples and household essentials to party dcor, balloons, craft supplies, and seasonal items.
Through DoorDash, Dollar Tree can reach new consumers who get on-demand access to the required products at accessible prices. Dollar Tree will be available on DashPass, DoorDash's membership program that offers $0 delivery fees and reduced service fees on eligible orders.
From now through June 17, new consumers to Dollar Tree on DoorDash will get 40 percent off orders with a subtotal of $25 or more, up to $20 off, using promo code SHOPDT.
Regarding its outlook, Dollar Tree said it projects second-quarter adjusted earnings per share in the range of $1.00 to $1.15, net sales from continuing operations of $4.8 billion to $4.9 billion, and comparable store net sales growth in the range of 2.5 percent to 3.5 percent.
Looking ahead for fiscal 2026, Dollar Tree now expects adjusted earnings per share in the range of $6.70 to $7.10, higher than previously projected adjusted earnings per share in the range of $6.50 to $6.90.
Further, the firm continues to expect net sales from continuing operations in the range of $20.5 billion to $20.7 billion, based on comparable store net sales growth in the range of 3 percent to 4 percent.
In fiscal 2025, adjusted earnings per share were $5.75 and net sales were $19.4 billion, with same-store sales growth of 5.3 percent.
In the first quarter, Dollar Tree's net income grew to $347.3 million from last year's $343.4 million. Earnings per share improved 19.7 percent to $1.76 from $1.61 a year ago.
In the prior year, excluding income from discontinued operations, income from continuing operations was $313.5 million or $1.47 per share.
On an adjusted basis, income from continuing operations was $343.4 million or $1.74 per share, compared to prior year's $269.7 million or $1.26 per share last year.
Operating income increased 23 percent year-over-year to $473.3 million and operating margin expanded 120 basis points. Adjusted operating income increased 22 percent to $473.3 million.
The company's total revenue for the period rose 7.2 percent to $4.976 billion from $4.640 billion last year. Net sales grew to $4.971 billion from $4.637 billion a year ago.
Comparable store net sales increased 3.5 percent, driven by a 4.5 percent increase in average ticket, partially offset by a 1.0 percent decline in traffic.
In pre-market activity on Nasdaq, Dollar Tree shares were gaining around 12.7 percent to trade at $108.00, after closing Wednesday's regular trading 2.32 percent higher.
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