The firm reported a 5.4% rise in same-store net sales driven by a 2.5% increase in traffic and a 2.8% increase in average ticket.

Dollar Tree Inc. (DLTR) shares tumbled nearly 10% on Wednesday after the company said it expects second-quarter adjusted earnings per share from continuing operations to fall as much as 45% to 50%.

Dollar Tree also stated that second-quarter (Q2) adjusted earnings per share (EPS) will re-accelerate in the third and fourth quarters to meet the company’s full-year earnings outlook.

For the rest of fiscal 2025, the company expects to mitigate the earnings impact of the cost pressures it faces, including higher tariffs. However, in the short term, it expects to see some earnings volatility, it said.

Dollar Tree also believes that second-quarter comparable net sales growth will be toward the higher end of its full-year outlook range of 3% to 5%.

Meanwhile, the company reported upbeat first-quarter (Q1) results. Net sales rose 11.3% year-over-year (YoY) to $4.6 billion, surpassing a Street estimate of $4.53 billion. Adjusted EPS of $1.26 beat an analyst estimate of $1.21.

The firm reported a 5.4% rise in same-store net sales, driven by a 2.5% increase in traffic and a 2.8% increase in average ticket size.

Dollar Tree said it continues to expect full-year net sales from continuing operations to be in the range of $18.5 billion to $19.1 billion, based on comparable store net sales growth of 3% to 5%.

As of May 3, 2025, Dollar Tree had approximately $519.7 million remaining under its $2.5 billion share repurchase authorization and $1 billion in cash and cash equivalents.

Dollar Tree shares have gained over 15% in 2025 but have declined by more than 26% in the past 12 months.

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