Dollar Tree exceeded sales expectations in Q1, but cautious outlook due to potential tariff impacts

From Financial Modeling Prep: 2025-06-04 16:12:00

Dollar Tree (NASDAQ:DLTR) exceeded sales expectations in Q1 amid economic pressures and tariff concerns. Net sales rose 11.3% to $4.6 billion, beating forecasts. Operating income increased 1.4% to $388 million, leading to adjusted EPS of $1.26. Shares fell 7% on cautious outlook due to potential tariff impacts on profits.

The discount retailer anticipates challenges from tariff-related volatility in upcoming quarters. Dollar Tree aims to mitigate most of the pressure from current tariffs if they remain unchanged throughout the fiscal year. Despite uncertainties, strong customer engagement is expected to continue.

Dollar Tree forecasts net sales of $18.5 billion to $19.1 billion for fiscal 2025, with comparable store growth of 3% to 5%. Q2 comparable sales are expected to be at the higher end of the range, indicating ongoing customer loyalty. The company remains focused on driving growth amidst cost uncertainties.



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