Shares of Dollar Tree, Inc. (NASDAQ: DLTR) stayed red on Tuesday. The stock has gained 23% over the past three months. The discount retailer is scheduled to report its earnings results for the second quarter of 2025 on Wednesday, September 3, before market open. Here’s a look at what to expect from the earnings report:
Revenue
Analysts are projecting revenue of $4.47 billion for Dollar Tree in the second quarter of 2025, which indicates a 39% decline from the same quarter a year ago. In the first quarter of 2025, net sales increased 11% year-over-year to $4.64 billion.
Earnings
The consensus target for Q2 2025 earnings per share is $0.40, which implies a 40% decrease from the prior-year period. In Q1 2025, adjusted EPS rose 2% YoY to $1.26.
Points to note
As mentioned in its Q1 earnings report, Dollar Tree anticipates some earnings volatility in the near-term. It expects adjusted EPS from continuing operations could be down as much as 45-50% YoY in Q2, before re-accelerating in the third and fourth quarters to meet its full-year earnings outlook.
DLTR has guided for comparable net sales growth in Q2 to be towards the higher end of its full-year outlook range of 3-5%. In Q1, same-store sales increased 5.4%, driven by a 2.5% growth in traffic and a 2.8% increase in average ticket.
Dollar Tree can be expected to benefit from continued strength in the consumables category as well as gains in the discretionary category. Last quarter, consumables comps were up 6.4% and discretionary comps were up 4.6%. The company is also seeing gains from new customers and a rise in higher-income customers. Its expanded assortment helps it meet the needs of customers across all income levels while its low price points and smaller pack sizes are helpful for budget-constrained customers.
The dollar store is also making good progress on its Multi-Price 3.0 store strategy and is seeing strong performance from its Multi-Price portfolio. Multi-Price allows the company to expand its product assortment and offer customers a wide range of products at a wide range of price points.
Dollar Tree completed the sale of its Family Dollar business and now plans to singularly focus on its core business to drive significant growth going forward.