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Dollar Tree Raises Full‑Year Outlook After Q1 Beat and New DoorDash Delivery Deal

A larger-than-expected quarter lifted guidance, added DoorDash delivery, with management warning higher fuel and tariff costs could pressure logistics.

Overview

  • Dollar Tree reported adjusted Q1 EPS of $1.74 and revenue of about $4.98 billion, beating analyst estimates and showing a 7.2% year‑over‑year sales gain.
  • Comparable‑store sales rose 3.5% on a 4.5% increase in average ticket while traffic fell roughly 1%, results the company credited to assortment changes, cost control and store improvements.
  • The company raised its fiscal 2026 adjusted EPS range to $6.70–$7.10 and left full‑year sales guidance unchanged, while projecting Q2 adjusted EPS of $1.00–$1.15.
  • Dollar Tree added DoorDash to its same‑day delivery partners, expanding on existing ties with Uber Eats and Instacart to offer on‑demand delivery from its U.S. stores.
  • Operational gains included margin expansion, operating income of about $473 million, 113 new stores, roughly 5,900 multi‑price locations, $595 million in buybacks and $392 million in free cash flow, though executives warned higher fuel and tariff costs could tighten margins later in the year.