New York, May 28, 2026, 08:02 EDT
- Dollar Tree raised its forecast for adjusted profit in fiscal 2026 after reporting first-quarter results that topped Wall Street estimates.
- The stock was up around 12% before the open. The Nasdaq had yet to start regular trading.
- Customer traffic dropped. But shoppers put more in their baskets per trip, which gave investors a clearer look at the chain’s business after Family Dollar.
Dollar Tree shares rallied in premarket trading Thursday after the retailer raised its full-year profit forecast and posted first-quarter results that beat estimates. The stock had struggled this year. Regular trading hours for the Nasdaq are 9:30 a.m. to 4:00 p.m. Eastern, and U.S. markets were open for business on May 28.
Dollar Tree is in focus as investors want to see if it can keep margins steady with low-income shoppers still pressured by food, fuel and other bills. Reuters noted the discount retailer’s pitch is winning over consumers looking for lower prices, and the shares moved as tariff and cost worries didn’t seem to hit this quarter.
Dollar Tree reported net sales up 7.2% to around $5.0 billion for the quarter ended May 2. Comparable store net sales climbed 3.5%. Adjusted diluted EPS came in at $1.74, up 38.1%.
Dollar Tree shares rose around 12% in premarket after the company topped analyst estimates for sales and earnings, according to LSEG data via Reuters. Wall Street had looked for $4.96 billion in sales and $1.54 per share in earnings.
Dollar Tree said sales got a lift from bigger average ticket sizes, up 4.5%, while customer visits dropped 1.0%. So the gain didn’t come from more shoppers, and there are still questions about store traffic even with the stronger top line.
Chief Executive Mike Creedon said Dollar Tree remains a “preferred destination for value, convenience, and discovery” after the quarter. He said changes in product mix, cost controls, customer engagement, and improved stores all helped margins get better. Dollar Tree, Inc.
Margins stood out in the report. Gross profit margin was up 120 basis points, or 1.2 points. Lower freight costs and less shrink from lost inventory offset the impact of higher tariffs and more markdowns.
Dollar Tree lifted its fiscal 2026 outlook for adjusted diluted EPS to a range of $6.70 to $7.10 from $6.50 to $6.90. The company left its full-year net sales forecast unchanged at $20.5 billion to $20.7 billion. For the current quarter, Dollar Tree is guiding for adjusted EPS of $1.00 to $1.15 and net sales of $4.8 billion to $4.9 billion.
DoorDash is pushing deeper into convenience with Dollar Tree. The two said Thursday that DoorDash users can now shop from more than 9,000 Dollar Tree stores in 48 states, offering over 10,000 items on the app. “Consumers want easier ways to shop for everyday needs at prices that work for them,” said DoorDash exec Mike Goldblatt. Business Wire
Dollar-store names moved higher after the update. MarketWatch said Dollar General shares gained 4.5% before the bell, with Dollar Tree up as well. Both stocks were down more than 20% for the year coming into Thursday.
But the risk stands out: fewer shoppers could turn into a bigger issue if tariffs, higher prices or markdowns weigh heavier. Piper Sandler cut its Dollar Tree price target to $101 from $116, staying at Neutral ahead of the report and flagged worries that comparable-store traffic might remain negative at least through the second quarter.
Dollar Tree said its full-year outlook does not include tariff refunds, and Reuters said those refunds came to about $110 million through May 26. That means investors are dealing with an uncertain number. The underlying business improved Thursday morning, but trade costs and store traffic are still the real test for how much of the premarket gain holds by the close.
