Dollar Tree Q1 2025 Earnings Report
Key Takeaways
Dollar Tree delivered robust top-line growth with $4.6 billion in revenue, supported by increased customer traffic and average ticket size. The company posted solid net income and continued to expand its store footprint while progressing on the sale of its Family Dollar segment.
Revenue rose 11.3% year-over-year to $4.6 billion.
Net income from continuing operations reached $313.5 million.
Same-store sales at Dollar Tree increased 5.4%, with both traffic and ticket growth.
148 new stores were opened, and 500 were converted to the multi-price format.
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Dollar Tree Revenue by Segment
Forward Guidance
Dollar Tree reaffirmed its FY25 revenue outlook and slightly updated its EPS guidance due to recent share repurchases. The company expects modest Q2 headwinds but anticipates acceleration in the second half.
Positive Outlook
- FY25 net sales outlook remains $18.5B–$19.1B.
- Same-store sales growth guidance of 3%–5%.
- Adjusted EPS guidance raised to $5.15–$5.65.
- Continued share repurchases enhancing EPS outlook.
- Family Dollar sale expected to close in Q2 with $800M+ in net proceeds.
Challenges Ahead
- Q2 adjusted EPS expected to decline 45%–50% YoY.
- SG&A costs from Family Dollar support will weigh on H1 EPS.
- Gross margin pressures remain from tariffs and distribution costs.
- Continued elevated depreciation and utilities impacting expense ratios.
- Inventory and markdown costs continue to offset margin gains.