Dollar Tree posted growth in the first quarter of 2026 and raised its full-year guidance. The US discount retailer closed the first three months of the fiscal year with better-than-expected results, driven by higher average sales, expanded store network, and improved profitability.
In the quarter ended May 2, 2026, net sales reached $5 billion, up 7,2% from the same period a year earlier. Comparable sales grew 3,5%, driven primarily by a 4,5% increase in average receipts, which offset a 1% decline in store traffic.
Profitability also showed signs of strengthening. Operating margin rose to 9,5%, an improvement of 120 basis points compared to the first quarter of 2025, while operating income increased 23% to $473 million. Net income from continuing operations amounted to $347 million, with diluted earnings per share of $1,76. On an adjusted basis, EPS increased 38% to $1,74.
“These results demonstrate the strength of our position as the premier destination for convenience and value,” commented CEO Mike Creedon, highlighting the progress of our strategic plan, which focuses on enhanced assortments, agile cost management, network growth, and enhanced in-store experience.
On the retail development front, Dollar Tree opened 113 new stores in the quarter and expanded its multi-price format to approximately 630 stores, bringing the total to 5.900. At the end of the period, the group operated a total of 9.382 stores in the United States and Canada.
Cash generation remained robust, with $644 million in operating cash flow and $392 million in free cash flow. At the same time, the company returned $595 million to shareholders through share buybacks, continuing a particularly active compensation policy.
In light of these results, the retailer has raised its guidance for the full year 2026. Dollar Tree now expects sales between $20,5 billion and $20,7 billion, comparable sales growth between 3% and 4%, and adjusted earnings per share between $6,70 and $7,10. The growth plan also includes approximately 400 new store openings and 75 store closures during the year.
For the second quarter, the group estimates sales between 4,8 and 4,9 billion dollars and comparable sales growth between 2,5% and 3,5%, confirming continued strong demand in the North American discount segment.
