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Aug 02, 2025
Dollar Tree Q2 2025 Earnings Report
Dollar Tree reported strong revenue and EPS growth, completed the sale of Family Dollar, and increased its full-year guidance.
Key Takeaways
Dollar Tree posted solid Q2 results with double-digit revenue growth, improved profitability, and a sharper focus on its core brand following the divestiture of Family Dollar.
Revenue grew 12.3% year-over-year to $4566800000.
Diluted EPS came in at $0.75, with adjusted EPS at $0.77.
Net income from continuing operations was $155500000.
The company completed the sale of Family Dollar and repurchased over $1 billion in shares year-to-date.
Revenue by Segment
Forward Guidance
Dollar Tree raised its full-year net sales and adjusted EPS guidance, citing strong Q2 performance and completed share repurchases.
Positive Outlook
- Full-year revenue guidance raised to $19.3B–$19.5B.
- Adjusted EPS guidance updated to $5.32–$5.72.
- Same-store sales expected to grow 4%–6% for FY25.
- Strong free cash flow generation year-to-date.
- Successful Family Dollar sale enhances strategic focus.
Challenges Ahead
- Gross margin slightly compressed by higher tariffs and markdowns.
- Operating margin contracted by 20 bps YoY.
- SG&A expenses increased due to wage and maintenance costs.
- Positive tariff timing benefit in Q2 expected to reverse in Q3.
- No additional share repurchases included in updated EPS guidance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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