Dollar Tree, Inc. (NASDAQ:DLTR) shares are set to drop on Wednesday as the discount retailer reported stronger-than-expected first quarter results but gave forecasts that fell flat with Wall Street.
Adjusted earnings per share came in at $1.26 for the three months to April 2025, ahead of the $1.20 Street consensus.
Net sales rose to $4.64 billion, compared to an expected $4.5 billion, while same-store sales increased 5.4%. The group opened 148 new Dollar Tree stores and converted around 500 to its '3.0' multi-price format during the period.
“Our strong first quarter performance underscores the progress we’ve made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making,” said CEO Mike Creedon.
Looking ahead to the second quarter, adjusted EPS is projected to fall by as much as 50% year-on-year but the company expects to mitigate the impact of higher tariffs as part of its ongoing cost strategy.
The FY adjusted EPS range was raised to $5.15 to $5.65, up from prior guidance of $5 to $5.50, as full-year net sales are now seen coming in between $18.5 billion and $19.1 billion, compared with the Street estimate of $18.9 billion.