09:05 AM EDT, 09/03/2025 (MT Newswires) -- Dollar Tree ( DLTR ) lifted its full-year outlook on Wednesday after recording better-than-expected fiscal second-quarter results, but the discount retailer provided an earnings outlook below market estimates for the ongoing three-month period.
The company anticipates per-share adjusted earnings in the third quarter to be similar to the prior-year quarter's reported figure of $1.12. The current consensus on FactSet is for non-GAAP EPS of $1.33. The stock fell 6.7% in the most recent premarket activity.
The retailer saw a $0.20 per-share tailwind to adjusted earnings in the second quarter from the timing of inventory mark-on and tariffs. However, it expects the positive timing of this impact to reverse in the current three-month period.
For fiscal 2025, Dollar Tree ( DLTR ) now projects adjusted EPS from continuing operations to be in a range of $5.32 to $5.72, up from its prior guidance of $5.15 to $5.65, reflecting the current operating environment and share repurchases so far this year. Sales from continuing operations are pegged at $19.3 billion to $19.5 billion, up from the previous forecast of $18.5 billion to $19.1 billion. The Street is looking for non-GAAP EPS of $5.52 and sales of $19.17 billion.
Comparable sales are expected to grow between 4% and 6% for the fiscal year, up from the prior outlook for growth of 3% to 5%. Analysts on FactSet are currently estimating same-store sales growth of 4.7%
The company, which completed the sale of its Family Dollar business in July, said its outlook assumes that tariff levels, as of Wednesday, will remain unchanged for the rest of the fiscal year and that it will be able to offset most of the incremental margin pressure from higher duties and other input costs.
US President Donald Trump reportedly said Tuesday that his administration plans to appeal to the Supreme Court on Wednesday to overturn the US Court of Appeals for the Federal Circuit's ruling last week that most of his tariffs are illegal.
For the quarter ended Aug. 2, Dollar Tree's ( DLTR ) adjusted EPS from continuing operations advanced to $0.77 from $0.68 a year earlier, defying the average analyst estimate for a decline to $0.41. Sales grew to $4.57 billion from $4.07 billion, ahead of the Street's view for $4.48 billion.
Same-store sales climbed 6.5%, surpassing the 5.4% increase modeled by the market at the enterprise level, buoyed by gains of 3% and 3.4% in traffic and average ticket, respectively.
"The strong sales growth, margin outperformance, and market share gains that Dollar Tree ( DLTR ) delivered in the second quarter against an increasingly challenging economic backdrop reinforces the unique position that Dollar Tree ( DLTR ) occupies in today's retail landscape," Chief Executive Mike Creedon said in a statement.