Dollar Tree, Inc. (NASDAQ: DLTR) reported financial results for its first quarter ended May 3, 2025.
“Our strong first quarter performance underscores the progress we’ve made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making,” said Mike Creedon, Chief Executive Officer. “History has shown that we have the resilience to emerge stronger from periods of economic uncertainty and in today’s rapidly evolving environment, we see a meaningful opportunity to further elevate the value, convenience, and discovery that our customers depend on Dollar Tree to provide.”

✅Dollar Tree Same-Store Net Sales +5.4% on +2.5% Traffic and +2.8% Ticket
✅Diluted Earnings per Share (EPS) from Continuing Operations of $1.47
✅Adjusted Diluted EPS from Continuing Operations of $1.26
✅Completed Over $500 Million of Share Repurchases Year-to-Date
✅Reiterate Full-Year Fiscal 2025 Net Sales Outlook Ranges of $18.5 to $19.1 Billion
✅Updating Adjusted EPS from Continuing Operations Outlook Range to $5.15 to $5.65 to Reflect Year-to-Date Share Repurchases
✅Net sales increased 11.3% to $4.6 billion. Same-store net sales increased 5.4%, driven by a 2.5% increase in traffic and a 2.8% increase in average ticket.

Gross profit increased 11.7% to $1.6 billion and gross margin expanded 20 basis points to 35.6%. The expansion in gross margin was driven primarily by lower freight, improved mark-on and lower occupancy costs due to sales leverage, partially offset by increased distribution, shrink, and markdown costs.
Selling, general and administrative expenses increased 100 basis points to 27.3% of total revenue. The increase was driven primarily by higher depreciation expense from store investments, higher store payroll from wage increases, general liability claims, and utilities costs, partially offset by lower stock compensation, lower temporary labor related to multi-price store conversions, and sales leverage.

Operating income increased 0.6% to $384.1 million and operating margin contracted 90 basis points to 8.3%. Adjusted operating income increased 1.4% to $387.8 million and adjusted operating margin contracted 80 basis points to 8.4%.
The Company’s effective tax rate was 25.9% compared to 24.6%. Adjusted effective tax rate was 26.1% compared to 24.6%.
Income from continuing operations was $313.5 million and diluted earnings per share from continuing operations was $1.47. On an adjusted basis, which does not include non-operating insurance gains or strategic review costs, net income was $269.7 million and diluted EPS was $1.26.
The Company repurchased 5.9 million shares for $436.8 million, including applicable excise tax. Subsequent to quarter end, we have purchased an additional 780 thousand shares for $67.5 million.