Dollar Tree, Inc. (NASDAQ:DLTR) shares jumped almost 18% on Thursday morning after the discount retailer reported stronger-than-expected earnings and upwardly revised its full-year profit guidance.
Adjusted earnings per share were $1.74, above analyst expectations of $1.55.
Revenue totaled $4.97 billion, matching consensus estimates and increasing 7.2% year over year. Comparable store sales rose 3.5%, supported by ongoing momentum in the company’s multi-price format expansion.
Dollar Tree also raised its full-year 2026 adjusted EPS outlook to a range of $6.70 to $7.10, above the prior consensus estimate of $6.67. The company said the improved outlook reflects stronger operating performance and continued execution of its strategic initiatives.
The company returned $595 million to shareholders through share repurchases during the first quarter and reported $644 million in net cash provided by operating activities from continuing operations, alongside $392 million in free cash flow.
Dollar Tree also opened 113 new stores and converted or added about 630 locations to its multi-price format, ending the quarter with roughly 5,900 stores in that model.
“Our first quarter results reflect continued progress across the business and demonstrate the strength of Dollar Tree’s position as the preferred destination for value, convenience, and discovery,” Dollar Tree CEO Mike Creedon said.
“As we celebrate our 40th anniversary in 2026, we are encouraged by the progress we are seeing across the business and remain focused on making thoughtful investments in our stores, assortment and customer experience – building Dollar Tree to last for decades to come.”