10-QPeriod: Q2 FY2026

DOLLAR TREE, INC. Quarterly Report for Q3 Ended Aug 2, 2025

Filed September 3, 2025For Securities:DLTR

Summary

Dollar Tree, Inc. (DLTR) reported solid top-line growth for the quarter ended August 2, 2025, with net sales increasing by 12.3% year-over-year. This growth was driven by a robust 6.5% increase in comparable store net sales, reflecting both higher customer traffic and an increased average ticket price. The company also successfully completed the sale of its Family Dollar business during the period, which is now presented as discontinued operations. Despite the strong sales performance, operating income margin saw a slight decrease due to increased selling, general, and administrative expenses, primarily related to higher store payroll and depreciation. The company continues to invest in strategic initiatives, including supply chain optimization and technology upgrades, which are expected to have near-to-mid-term impacts on gross margins. The completion of the Family Dollar sale significantly impacts the balance sheet and cash flow statements, with net proceeds contributing to financial flexibility.

Financial Highlights

43 data points
Beta

Revenue

$4.64B

35.6% Gross Margin

Net Income

$343.40M

7.4% Net Margin

EPS (Diluted)

$1.61

Total Assets

$18.29B

Cash & Equivalents

$1.01B

Free Cash Flow

$378.50M

Financial Statements
Beta
Revenue$4.64B
Cost of Revenue$2.99B
Gross Profit$1.65B
SG&A Expenses$1.27B
Operating Income$384.10M
Net Income$343.40M
EPS (Basic)$1.61
EPS (Diluted)$1.61
Shares Outstanding (Basic)213.60M
Shares Outstanding (Diluted)213.90M

Key Highlights

  • 1Net sales increased 12.3% to $4,566.8 million, driven by a 6.5% comparable store net sales increase.
  • 2Completed the sale of the Family Dollar business on July 5, 2025, with net proceeds of approximately $800 million.
  • 3Diluted earnings per share from continuing operations rose to $0.75 from $0.66 year-over-year.
  • 4Gross profit margin improved slightly by 20 basis points to 34.4%, due to better mark-on and lower freight costs, partially offset by tariffs and distribution costs.
  • 5Operating income margin decreased by 20 basis points to 5.1% due to higher SG&A expenses.
  • 6Share repurchases totaled $501.4 million in the 13-week period, with $2.4 billion remaining on the authorization.
  • 7The company is expanding its multi-price point strategy, with over 4,240 stores now offering additional price points beyond $1.25.

Frequently Asked Questions

The sale of the Family Dollar business was completed on July 5, 2025. Its results are now presented as discontinued operations for all periods. The sale generated approximately $800 million in cash and significantly reduced the company's total assets and liabilities.

Comparable store net sales grew by 6.5% in the 13-week period. This was driven by a 3.0% increase in customer traffic and a 3.4% increase in the average ticket price.

The operating income margin decreased by 20 basis points to 5.1% primarily due to an increase in selling, general, and administrative (SG&A) expenses. This increase was attributed to higher store payroll costs, increased depreciation from store investments, and higher incentive compensation, partially offset by a decrease in general liability expenses and leverage from sales growth.

The company is actively implementing mitigation strategies to offset the impact of tariffs and other cost inflation. These strategies include negotiating lower product costs, shifting supply sources, adjusting product assortment, and increasing prices. While they expect near-term challenges with higher costs due to tariff volatility, they aim to protect margins and maintain competitiveness long-term. The ultimate impact remains uncertain.