Dollar Tree Earnings Call: CEO Mike Creedon Cites Tariff Volatility As Major Hurdle While Lifting Full-Year Outlook

Dollar Tree now expects fiscal 2025 net sales from continuing operations to be in the range of $19.3 billion to $19.5 billion, compared with the previous forecast of $18.5 billion and $19.1 billion.

Dollar Tree (DLTR) CEO Mike Creedon stated on Wednesday that tariffs continue to be a source of ongoing volatility, and operating in an environment where rates fluctuate frequently remains one of the dollar store chain’s largest challenges.

“Our expanded assortment makes us more relevant, broadens our customer base and increases our flexibility in responding to tariffs and other cost pressures,” Creedon said on a post-earnings call.

Retail sentiment on Dollar Tree remained unchanged in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits. Shares of Dollar Tree were down nearly 9% in early trading.

Truist Securities analyst Scot Ciccarelli stated that the delay in the tariff impact is expected to negatively impact third-quarter earnings per share (EPS) and is likely to remain flat year-over-year at approximately $1.08.

The company’s second-quarter net sales totaled $4.57 billion, exceeding Wall Street expectations of $4.45 billion, according to data compiled by Fiscal AI. Its adjusted EPS of $0.77 topped estimates of $0.41.  

Dollar Tree executives said that the company was seeing customers across all income levels resonating with its stores. They noted that 50% of the customers the company added came from the higher $100,000 salary point and that these shoppers made two-thirds of Dollar Tree’s customers in the second quarter.

The company now expects fiscal 2025 net sales from continuing operations to be in the range of $19.3 billion to $19.5 billion, compared with the previous forecast of $18.5 billion and $19.1 billion.

Dollar Tree forecast adjusted EPS to come between $5.32 and $5.72, compared with the prior expectation of $5.15 to $5.65.

A user on Stocktwits noted that the company’s stock could hit $120 in the near term.

Dollar Tree’s shares have jumped nearly 38% this year and gained over 60% in the last 12 months.

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