Dollar Tree posted Q4 FY2025 adjusted EPS of $2.56, beating the consensus estimate of $2.53 by 1.1%, while revenue of $5.45 billion came in line with Wall Street expectations – up 9% year over year. Shares gained more than 5% in pre-market trading following the results announcement on March 16, 2026.
About Dollar Tree, Inc.
Dollar Tree, Inc. (NASDAQ: DLTR), headquartered in Chesapeake, Virginia, is one of North America’s largest discount variety retailers. Founded in 1986, the company operates more than 9,200 stores across 48 contiguous U.S. states and seven Canadian provinces under the Dollar Tree and Dollar Tree Canada banners. Following the completed sale of Family Dollar in fiscal 2025, Dollar Tree has returned to a focused single-banner enterprise dedicated to delivering value, convenience, and a “thrill-of-the-hunt” discovery shopping experience.
As of March 2026, the company’s market capitalization stands at approximately $21.37 billion, with roughly 150,000 associates supporting its store fleet and 18 distribution centers. The retailer has delivered 20 consecutive years of positive same-store sales, underscoring the durability of its value-focused model through multiple economic cycles. Dollar Tree’s primary price points span $1.25 to multiple price bands under its fast-growing multi-price “Dollar Tree 3.0” format, with approximately 5,300 fully converted multi-price stores by year end.
Top Financial Highlights
- Total Q4 net sales reached $5.45 billion, a 9.0% increase year over year
- Full-year FY2025 net sales hit $19.4 billion, up 10.4% from the prior year
- Q4 diluted EPS from continuing operations was $2.56, rising 37.8% year over year
- Q4 adjusted diluted EPS of $2.56 beat the Zacks consensus estimate of $2.53 by 1.1%
- FY2025 full-year adjusted diluted EPS reached $5.75, up 13% from the prior year
- Gross profit margin expanded 150 basis points to 39.1% in Q4, driven by lower freight costs and favorable pricing actions
- Q4 operating income rose 30.2% to $695 million; adjusted operating income grew 10.7%
- Same-store net sales grew 5.0% in Q4, driven by a 6.3% increase in average ticket, partially offset by a 1.2% decline in traffic
- Full-year free cash flow exceeded $1.1 billion, with operating cash flow at $2.2 billion
- Cash and cash equivalents at quarter end stood at $717.8 million with no commercial paper outstanding
- Dollar Tree returned $1.548 billion to shareholders via share repurchases in fiscal 2025, reducing shares outstanding by approximately 8% year over year
- FY2026 guidance calls for net sales of $20.5 to $20.7 billion and adjusted EPS of $6.50 to $6.90
- Q1 FY2026 guidance targets net sales of $4.9 to $5.0 billion and adjusted EPS of $1.45 to $1.60
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Q4 Net Sales | $5.45B | $5.46B | In line; 9% YoY growth |
| Adjusted EPS (Q4) | $2.56 | $2.53 | Beat by +$0.03 (+1.1%) |
| Adjusted EBITDA (Q4) | $819.2M | $880.7M | Miss by ~7% |
| Q4 Same-Store Sales Growth | 5.0% | ~2% prior year baseline | Strong acceleration vs. prior period |
| FY2026 Adjusted EPS Guidance | $6.70 midpoint | ~$6.74 consensus | Slight miss by 0.6% |
| Q1 FY2026 Revenue Guidance | $4.95B midpoint | ~$4.95B consensus | Roughly in line |
| Q4 Operating Margin | 12.7% | In line with prior year | Flat YoY; adjusted operating margin expanded 20 bps to 12.8% |
| Full-Year FY2025 Adj. EPS | $5.75 | $5.60-$5.80 company guidance | Beat company’s own raised guidance midpoint |
What Leadership Is Saying?
CEO Mike Creedon on Strategy and Vision
“Our strong results this quarter show that Dollar Tree remains America’s retail destination for value, convenience, and discovery – underscored by our 20th consecutive year of positive same store sales. By delivering great value at low prices, with disciplined execution, we continue to expand our reach and drive long-term growth.”
Creedon further elaborated on the company’s transformation during the earnings call, noting that Dollar Tree exited fiscal 2025 from a stronger earnings base than contemplated at Investor Day, reflecting operational progress in the back half of the year and positive customer response to the expanded multi-price assortment. He highlighted that Dollar Tree U.S. households reached a record 102 million, adding 6.5 million net new households in Q4 alone – a meaningful acceleration versus Q3.
CFO Stewart Glendinning on Financials and Margins
“For the fourth quarter of fiscal 2025, Dollar Tree delivered strong results, extending the momentum we built throughout the year. Comparable sales increased 5%, gross margin expanded 150 basis points, and adjusted diluted earnings per share increased 21% year-over-year. We ended the quarter with $718 million in cash and no commercial paper outstanding. In 2025, we returned a record amount of capital to shareholders. With a strong balance sheet and multiple levers to drive growth, we believe we are well-positioned to deliver consistent, profitable growth and to create long-term value for our shareholders.”
Glendinning also noted that the full year saw gross margin improve by 59 basis points, a strong outcome, and that FY2026 guidance reflects a goal to maintain that improved performance even as freight cost tailwinds are expected to partially reverse. He confirmed plans to rightsize the corporate cost structure, targeting corporate SG&A of approximately 2% of sales by fiscal 2028.
Historical Performance
Dollar Tree Q4 YoY Comparison
| Category | Q4 FY2025 (Jan 31, 2026) | Q4 FY2024 (Feb 1, 2025) | Change (%) |
| Net Sales | $5,446.1M | $4,996.7M | +9.0% |
| Gross Profit | ~$2,130.6M | ~$1,879.8M | +13.3% |
| Gross Margin | 39.1% | 37.6% | +150 bps |
| Operating Income | $694.7M | $533.6M | +30.2% |
| SG&A Expenses | $1,463.6M | $1,349.3M | +8.5% |
| Income from Continuing Ops | $511.7M | $400.2M | +27.9% |
| Diluted EPS (Continuing Ops) | $2.56 | $1.86 | +37.8% |
| Same-Store Sales Growth | +5.0% | +2.0% | Acceleration of +300 bps |
Competitor Comparison
Q4 FY2025 YoY Performance
| Category | Dollar Tree Q4 FY2025 | Dollar Tree Q4 FY2024 | Dollar General Q4 FY2025 | Dollar General Q4 FY2024 |
| Net Sales | $5.45B | $5.00B | $10.91B | $10.30B |
| Net Sales Change | +9.0% | – | 5.90% | – |
| Same-Store Sales Growth | +5.0% | +2.0% | +4.3% | +1.2% |
| Operating Income | $694.7M | $533.6M | $606.3M | $294.2M |
| Operating Income Change | +30.2% | – | +106.1% | – |
| Diluted EPS | $2.56 | $1.86 | $1.93 | $0.87 |
| Diluted EPS Change | +37.8% | – | +121.8% | – |
Dollar General’s EPS surge is largely due to prior-year impairment charges of approximately $232 million from its store portfolio optimization review that depressed the FY2024 base. Dollar Tree’s results are on a continuing operations basis, excluding the divested Family Dollar segment.
How the Market Reacted?
Dollar Tree shares gained more than 5% in pre-market trading on March 16, 2026, following the release of the fourth-quarter fiscal 2025 results before the market opened. The stock reaction reflected investor enthusiasm over the EPS beat, the 20th consecutive year of positive same-store sales, and the broader transformation narrative surrounding the completed Family Dollar divestiture.
Shares were trading around $111.81 to $114 in the days after the announcement, compared to a 52-week range of $61.87 to $142.40. The market reaction was broadly constructive, though the slight EBITDA miss and a modestly below-consensus FY2026 adjusted EPS guidance midpoint tempered some of the upside enthusiasm from analysts watching margin recovery trajectories.
