Dollar Tree, Inc. Reports Fourth Quarter and Full Year 2025 Results

Dollar Tree, Inc. Reports Fourth Quarter and Full Year 2025 Results CHESAPEAKE, Va.--( BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR) today reported financial results for its fourth quarter ended January 31, 2026.

“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,” said Mike Creedon, Chief Executive Officer for Dollar Tree. “By delivering great value at low prices, with disciplined execution, we continue to expand our reach and drive long-term growth.”

Additional Business Highlights

Fourth Quarter 2025 Key Operating Results (unaudited)

(from continuing operations unless otherwise noted)

(Compared to same period fiscal 2024)

Fiscal 2025

Change

Net Sales

$5.5B

9.0%

Same-Store Net Sales Growth – Dollar Tree

5.0%

Operating Income

$695M

30.2%

Diluted EPS

$2.56

37.8%

Adjusted Operating Income 1

$695M

10.7%

Adjusted Diluted EPS

$2.56

21.3%

Adjustments for the fourth quarter of 2025 are strategic review costs and change in estimated software termination costs. See “Reconciliation of Non-GAAP Financial Measures” below for detailed schedules of these adjustments.

Fourth Quarter Results

Results for the fourth quarter ended January 31, 2026 are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of the Dollar Tree segment and corporate, support and other.

Unless otherwise noted, all comparisons are to the prior year’s fourth quarter, ended February 1, 2025 for the results of continuing operations.

Net sales increased 9.0% to $5.45 billion. Same-store net sales increased 5.0%, driven by a 6.3% increase in average ticket, partially offset by a 1.2% decline in traffic.

Gross profit increased 13.3% and gross profit margin increased 150 basis points to 39.1%. The improvement in gross margin was primarily driven by improved mark-on from pricing initiatives and lower domestic and import freight costs. These benefits were partially offset primarily by higher tariff costs.

Selling, general and administrative expenses decreased 10 basis points to 26.9% of total revenue. The decrease was primarily due to prior-year software impairments and contract termination costs, and lower stock compensation, partially offset by higher store payroll in support of pricing initiatives, higher general liability claims, and higher incentive compensation.

On an adjusted basis, which does not include strategic review costs, software impairments and termination costs, and the prior-year accelerated vesting of certain stock awards, the selling, general and administrative expense rate increased 170 basis points to 26.8% of total revenue.

Operating income increased 30.2%. Adjusted operating income increased 10.7%.

Transition services agreement income, net was $23.1 million for services provided between Dollar Tree and Family Dollar following the sale.

The Company’s effective tax rate was 24.4% compared to 25.9%. The adjusted effective tax rate was 24.3% compared to 24.8%.

Income from continuing operations was $511.7 million and diluted earnings per share from continuing operations was $2.56. On an adjusted basis, income from continuing operations was $512.1 million and adjusted diluted earnings per share was $2.56.

The Company repurchased 2.2 million shares of its common stock during the fourth quarter of fiscal 2025 for $232 million.

As of January 31, 2026, the Company had $1.8 billion remaining under its share repurchase authorization, $717.8 million of cash and cash equivalents, no commercial paper outstanding, and no borrowings under its credit facilities.

Year-to-Date Results

Results for the 52 weeks ended January 31, 2026 are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of our Dollar Tree segment and corporate, support and other.

Unless otherwise noted, all comparisons are to the prior fiscal year ended February 1, 2025 for the results of continuing operations.

Net sales increased 10.4% to $19.4 billion. Dollar Tree’s same-store sales increased 5.3%, driven by a 4.3% increase in average ticket and a 1.0% increase in traffic.

Gross profit margin increased 60 basis points compared to the prior year, primarily driven by improved mark-on from pricing initiatives, and lower domestic and import freight costs. These benefits were partially offset primarily by higher tariff costs, and higher markdowns.

Selling, general and administrative expenses were 28.2% of total revenue, compared to 27.5%.

On an adjusted basis, selling, general and administrative expenses were 28.1% of total revenue, compared to 26.9%.

Operating income increased 13.1% to $1.7 billion and operating income margin increased 20 basis points to 8.5%. Adjusted operating income increased 6.5% to $1.7 billion and adjusted operating income margin decreased 30 basis points to 8.6%.

The Company’s effective tax rate was 24.8% compared to 24.7%. Adjusted effective tax rate was 24.8% compared to 24.2% in the prior year.

Income from continuing operations was $1.2 billion and diluted earnings per share from continuing operations was $5.94. On an adjusted basis, income from continuing operations was $1.2 billion and adjusted diluted earnings per share was $5.75.

The Company repurchased approximately $1.6 billion of shares during fiscal 2025.

Fiscal 2026 Outlook

Our full-year fiscal 2026 outlook is presented on a continuing operations basis and reflects the operations of our Dollar Tree segment, including corporate, support and other.

For fiscal 2026, the Company expects:

First Quarter 2026 Outlook

The Company expects net sales from continuing operations for the first quarter will range from $4.9 billion to $5.0 billion, based on comparable store net sales growth in the range of 3% to 4%.

Adjusted diluted EPS for the first quarter 2026 is estimated to be in the range of $1.45 to $1.60.

Conference Call Information

On Monday, March 16, 2026, the Company will host a conference call to discuss its earnings results at 8:00 a.m. Eastern Time. The telephone number for the call is (877) 407-3943 or (201) 689-8855. A recorded version of the call will be available for seven days after the call and may be accessed by dialing (877) 660-6853 or (201) 612-7415. The access code is 13758753. A webcast of the call is also accessible through the Investor Relations portion of the Company’s website.

Supplemental financial information for the fourth quarter is available on the Investor Relations portion of the Company’s website, at https://corporate.dollartree.com/investors.

Dollar Tree, Inc., headquartered in Chesapeake, VA, is one of North America’s largest and most loved value retailers, known for delivering great value, convenience, and a “thrill-of-the-hunt” discovery shopping experience. With a team of approximately 150,000 associates, Dollar Tree operates more than 9,200 stores and 18 distribution centers across 48 contiguous states and seven Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The Company is committed to being a responsible steward of its business – supporting its people, serving its communities, and creating lasting value. To learn more about the Company, visit www.DollarTree.com.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). From time to time, the Company supplements the reporting of its financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP financial measures we have disclosed include adjusted selling, general and administrative expenses inclusive and exclusive of TSA income; adjusted selling, general and administrative expense rate inclusive and exclusive of TSA income; adjusted operating income (loss); adjusted operating income (loss) margin; adjusted income from continuing operations; adjusted diluted earnings per share; and adjusted effective tax rate, in each case with respect to our continuing operations; and free cash flow.

Reconciliations of the non-GAAP financial measures to the corresponding amounts prepared in accordance with GAAP appears in the tables under the heading “Reconciliation of Non-GAAP Financial Measures” below. These tables provide additional information regarding the adjusted measures.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “believe”, “anticipate”, “expect”, “intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”, “should”, “predict”, “possible”, “potential”, “continue”, “strategy”, and similar expressions. For example, our forward-looking statements include statements relating to our business and financial outlook for fiscal 2026, including without limitation our expectations regarding net sales, comparable store sales and adjusted diluted earnings per share for the first fiscal quarter and full fiscal year 2026, and various factors that are expected to impact our quarterly and annual results of operations for fiscal 2026; the direct and indirect impacts of current and potential tariffs and other trade-related measures and our plans to mitigate those impacts; our plans and expectations regarding our business, including the impact of various initiatives, investments, and strategies on the company’s performance and prospects for long-term growth; and our other plans, objectives, expectations (financial and otherwise) and intentions. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed March 16, 2026, our Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

DLTR-E

DOLLAR TREE, INC.

FINANCIAL TABLES

T-1: Condensed Consolidated Income Statements

T-2: Condensed Consolidated Balance Sheets

T-3: Condensed Consolidated Statements of Cash Flows

T-4: Segment Information

T-5: Dollar Tree Segment Information

T-6: Reconciliation of Non-GAAP Financial Measures

T-6a: Reconciliation of Non-GAAP Financial Measures (continued)

T-7: Reconciliation of Non-GAAP Financial Measures – Continuing Operations

T-7a: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)

T-7b: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)

T-8: Reconciliation of Non-GAAP Financial Measures – Free Cash Flow

5,446.1

4,996.7

19,395.7

17,565.8

4.6

3.1

16.1

12.7

5,450.7

4,999.8

19,411.8

17,578.5

3,315.5

3,116.9

12,345.0

11,284.1

1,463.6

1,349.3

5,468.6

4,832.4

23.1

54.9

694.7

533.6

1,653.1

1,462.0

18.1

22.6

85.5

107.5

0.1

(29.3

)

(61.9

)

(29.1

)

676.5

540.3

1,629.5

1,383.6

164.8

140.1

404.2

341.1

511.7

400.2

1,225.3

1,042.5

(5.6

)

(4,096.1

)

57.2

(4,072.6

)

506.1

(3,695.9

)

1,282.5

(3,030.1

)

2.57

1.86

5.95

4.83

(0.03

)

(19.04

)

0.28

(18.88

)

2.54

(17.18

)

6.23

(14.05

)

199.1

215.1

205.8

215.7

2.56

1.86

5.94

4.83

(0.03

)

(19.03

)

0.28

(18.86

)

2.53

(17.17

)

6.22

(14.03

)

199.8

215.3

206.3

215.9

26.9

27.0

28.2

27.5

0.4

0.0

0.3

0.0

12.7

10.7

8.5

8.3

12.4

10.8

8.4

7.9

24.4

25.9

24.8

24.7

9.4

8.0

6.3

5.9

717.8

1,256.5

2,495.4

2,672.0

233.0

169.8

5,008.9

3,446.2

9,107.2

42.9

75.7

4,959.6

4,499.3

4,435.1

4,146.4

423.2

421.2

1.0

260.6

158.2

133.6

13,466.2

18,644.0

1,000.0

1,000.2

960.7

1,530.7

1,705.8

120.1

697.7

574.4

4,224.9

3,228.6

8,585.9

2,431.7

2,431.2

3,623.7

3,438.7

153.3

29.7

28.2

244.3

182.6

9,711.3

14,666.6

3,754.9

3,977.4

13,466.2

18,644.0

1,282.5

(3,030.1

)

57.2

(4,072.6

)

1,225.3

1,042.5

648.1

526.9

147.4

49.3

58.9

106.9

9.0

52.1

(41.0

)

92.9

20.0

130.6

(182.6

)

(13.7

)

(65.7

)

(32.8

)

(45.2

)

(78.1

)

(178.1

)

541.4

128.9

110.6

101.8

14.4

63.1

45.4

(71.6

)

(22.7

)

2,190.7

2,193.3

(1,134.0

)

(1,300.5

)

680.0

(246.0

)

50.0

1.3

1.1

(648.7

)

(1,249.4

)

(1,000.0

)

(3.8

)

10,117.2

3,206.1

(10,117.2

)

(3,206.1

)

8.2

9.8

(13.3

)

(21.1

)

(1,548.0

)

(400.0

)

(2,556.9

)

(411.3

)

343.3

669.2

(79.8

)

(446.0

)

263.5

223.2

0.9

(1.8

)

(750.5

)

754.0

1,511.2

757.2

760.7

1,511.2

5,446.1

4,996.7

19,395.7

17,565.8

5,446.1

4,996.7

19,395.7

17,565.8

0.1

4.6

3.1

16.1

12.6

4.6

3.1

16.1

12.7

5,446.1

4,996.7

19,395.7

17,565.9

4.6

3.1

16.1

12.6

5,450.7

4,999.8

19,411.8

17,578.5

3,315.5

60.9

3,116.9

62.4

12,345.0

63.6

11,284.1

64.2

3,315.5

60.9

3,116.9

62.4

12,345.0

63.6

11,284.1

64.2

2,130.6

39.1

1,879.8

37.6

7,050.7

36.4

6,281.7

35.8

2,130.6

39.1

1,879.8

37.6

7,050.7

36.4

6,281.7

35.8

1,302.4

23.9

1,120.7

22.4

4,877.8

25.1

4,193.2

23.9

161.2

3.0

228.6

4.6

590.8

3.0

639.2

3.6

1,463.6

26.9

1,349.3

27.0

5,468.6

28.2

4,832.4

27.5

0.0

23.1

0.4

0.0

54.9

0.3

0.0

23.1

0.4

0.0

54.9

0.3

0.0

828.2

15.2

759.1

15.2

2,172.9

11.2

2,088.6

11.9

(133.5

)

(2.4

(225.5

)

(4.5

(519.8

)

(2.7

(626.6

)

(3.6

694.7

12.7

533.6

10.7

1,653.1

8.5

1,462.0

8.3

(Unaudited)

9,269

8,868

8,881

8,415

402

525

(29

)

(24

)

(72

)

(71

)

9,282

8,881

9,282

8,881

82.6

78.4

82.6

78.4

5.4

7.3

5.4

7.3

241

232

1,302.4

1,120.7

4,877.8

4,193.2

(0.4

)

(8.8

)

(4.8

)

(10.0

)

0.2

(2.0

)

1,302.0

1,112.1

4,873.0

4,181.2

23.9

22.3

25.1

23.8

828.2

759.1

2,172.9

2,088.6

0.4

8.8

4.8

10.0

(0.2

)

2.0

828.6

767.7

2,177.7

2,100.6

15.2

15.4

11.2

12.0

161.2

228.6

590.8

639.2

0.1

(2.3

)

(4.4

)

(0.3

)

(10.7

)

(0.3

)

4.5

(58.3

)

4.5

(58.3

)

(27.1

)

(27.1

)

161.3

143.0

584.6

551.2

3.0

2.9

3.0

3.1

161.2

228.6

590.8

639.2

0.1

(2.3

)

(4.4

)

(0.3

)

(10.7

)

(0.3

)

4.5

(58.3

)

4.5

(58.3

)

(27.1

)

(27.1

)

(23.1

)

(54.9

)

138.2

143.0

529.7

551.2

2.5

2.9

2.7

3.1

(133.5

)

(225.5

)

(519.8

)

(626.6

)

(0.1

)

2.3

4.4

0.3

10.7

0.3

(4.5

)

58.3

(4.5

)

58.3

27.1

(133.6

)

(139.9

)

(513.6

)

(538.6

)

(2.5

(2.8

(2.6

(3.1

1,463.6

1,349.3

5,468.6

4,832.4

0.1

(2.3

)

(4.8

)

(9.1

)

(15.5

)

(10.3

)

0.2

(2.0

)

4.5

(58.3

)

4.5

(58.3

)

(27.1

)

(27.1

)

1,463.3

1,255.1

5,457.6

4,732.4

26.8

25.1

28.1

26.9

694.7

533.6

1,653.1

1,462.0

(0.1

)

2.3

4.8

9.1

15.5

10.3

(0.2

)

2.0

(4.5

)

58.3

(4.5

)

58.3

27.1

695.0

627.8

1,664.1

1,562.0

12.8

12.6

8.6

8.9

511.7

400.2

1,225.3

1,042.5

(0.1

)

2.3

4.8

9.1

15.5

10.3

(0.2

)

2.0

(4.5

)

58.3

(4.5

)

58.3

27.1

(29.7

)

(61.8

)

(29.7

)

0.1

(9.9

)

12.6

(11.2

)

512.1

454.8

1,187.1

1,101.6

9.4

9.1

6.1

6.3

2.56

1.86

5.94

4.83

(0.00

)

0.01

0.02

0.04

0.08

0.05

(0.00

)

0.01

(0.02

)

0.27

(0.02

)

0.27

0.13

(0.14

)

(0.30

)

(0.14

)

0.00

(0.05

)

0.06

(0.05

)

2.56

2.11

5.75

5.10

24.4

25.9

24.8

24.7

-0.1

-1.1

0.0

-0.5

24.3

24.8

24.2

1,232.2

857.6

2,190.7

2,193.3

(263.7

)

(294.8

)

(1,134.0

)

(1,300.5

)

968.5

562.8

1,056.7

892.8

(255.7

)

(287.9

)

(648.7

)

(1,249.4

)

(853.4

)

1.6

(2,556.9

)

(411.3

)