Dollar Tree Q1 Beats, Warns on Tariff Impact

Dollar Tree posted stronger-than-expected fiscal first-quarter 2025 results, with adjusted earnings per share of $1.26 and a 5.4% rise in same-store sales, both exceeding analyst expectations. The company raised its full-year adjusted EPS guidance to $5.15-$5.65, despite warning that second quarter profit could decline by up to 50% year-over-year due to the impact of tariffs. Dollar Tree expects the sale of its Family Dollar brand to close in the second quarter, generating net proceeds of about $800 million. Management maintained its full-year sales outlook and noted that near-term earnings volatility is anticipated, with profit recovery expected in the latter half of the year. The company continues to benefit from resilient consumer demand and lower freight costs. These results come as Dollar Tree navigates a challenging economic environment and shifting consumer preferences.