Single-price point dollar stores' operator Dollar Tree Inc. (DLTR) Wednesday reported a surge in second quarter profit as increased demand for basic, consumable product drove more customers, resulting in higher earnings and operating margin. The company provided third-quarter earnings forecast and raised the full year earnings outlook.
Second-quarter net income rose 15.4% to $37.6 million from $32.6 million in the comparable quarter a year ago. Earnings per share were up 27.3% to $0.42 from $0.33 in the same quarter last year on lower share count. On average, twelve analysts polled by First Call/Thomson expected the company to earn $0.41 per share for the quarter.
Sales for the quarter increased 12.5% to $1.09 billion from $971.2 million in the prior-year quarter, and came above Street expectation of $1.08 billion. Comparable store sales increased 6.5% for the quarter.
Operating income was up at $61.6 million and operating margin improved 10 basis points to 5.6% from the year-earlier quarter.
Gross profit percentage for the quarter was 33.2%, compared to 33.6% in the same quarter last year hurt by the planned shift in the merchandise mix towards consumables and increased diesel fuel costs, relative to last year.
For the six-month period, net income was $81.2 million or $0.90 per share, up from $70.7 million or $0.71 per share in the prior-year period. Sales for the period surged to $2.14 billion from $1.95 billion in the year-ago period.
For the third quarter, the company expects earnings in the range of $0.40 to $0.43 per share, roughly in line with current Street expectation of $0.42 per share. Third quarter sales are anticipated to be in the range of $1.06 billion to $1.11 billion, while Street expects $1.08 billion. The company also expects third quarter comparable store sales to be low-to-low mid single digit positive.
For the full year, the company now expects earnings in the range of $2.33 to $2.43 per share, up from the prior guidance range of $2.23 to 2.39 per share. The Street currently expects earnings of $2.44 per share for the year.
The company also projects full-year sales in the range of $4.61 billion to $4.68 billion, based on low-to-low-mid single digit positive comparable store sales, up from previous outlook range of $4.52 billion to $4.63 billion. The Street currently expects sales of $4.64 billion for the year.
DLTR is currently trading at $36.71, down $2.47 or 6.30% on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.