Dollar Tree, Inc. reported its fiscal 2025 fourth‑quarter and full‑year results on March 16, 2026. Adjusted diluted earnings per share for the quarter were $2.56, beating the consensus estimate of $2.53 by $0.03. Net sales for the quarter reached $5.45 billion, slightly below the $5.46 billion estimate, a miss of $20 million. The company’s comparable‑store net sales grew 5.0 % year over year, and the same‑store net sales for the full year rose 5.3 % to $19.4 billion.
The EPS beat was driven by a 150‑basis‑point expansion of gross profit margin to 39.1 %, a result of pricing initiatives that lifted mark‑on and lower domestic and import freight costs. Operating income increased 21 % to $2.56 billion, while adjusted EBITDA fell short of estimates by $61 million, reflecting higher tariff costs that partially offset margin gains.
Revenue fell short of expectations by $20 million, largely because traffic declined 1.2 % in the quarter. The company countered this headwind with a 6.3 % increase in average ticket, which helped lift same‑store sales. The 402 new Dollar Tree stores opened during fiscal 2025 contributed to the 9.0 % net‑sales growth in the quarter and the 10.4 % growth for the year.
Management guided for fiscal 2026 comparable‑store net‑sales growth of 3 % to 4 % and adjusted earnings per share of $6.50 to $6.90. For the first quarter of fiscal 2026, the company expects comparable‑store net‑sales growth of 3 % to 4 % and adjusted EPS of $1.45 to $1.60. “We expect net sales in the range of $20.5 billion to $20.7 billion, reflecting comparable store sales growth of 3 % to 4%. We expect diluted earnings per share in the range of $6.50 to $6.90, which is consistent with our Investor Day framework and represents high‑teens earnings growth for the year,” said CFO Stewart Glendinning.
CEO Mike Creedon highlighted the company’s continued value proposition, noting, “Our strong results this quarter show that Dollar Tree remains America’s retail destination for value, convenience, and discovery – underscored by our 20th consecutive year of positive same‑store sales. By delivering great value at low prices, with disciplined execution, we continue to expand our reach and drive long‑term growth.” The multi‑price “Dollar Tree 3.0” strategy, which introduced higher‑price items up to $9.00, is cited as a key driver of the 5.0 % same‑store sales growth.
Investors reacted with mixed sentiment. While the EPS beat and margin expansion reinforced confidence in the company’s execution, concerns over the revenue miss, adjusted EBITDA shortfall, and a 1.2 % traffic decline tempered enthusiasm. The company’s focus on core‑brand expansion, lower freight costs, and a disciplined pricing strategy positions it to sustain growth, but the impact of higher tariff costs and competitive pressure remains a headwind.
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