Shares of Dollar Tree $DLTR jumped more than 11% in premarket trading after the discount retailer topped analyst expectations and lifted its full-year profit guidance, according to Yahoo Finance.
Adjusted EPS came in at $1.74 for the quarter ended May 2, 2026, a 38% improvement year over year and well above the $1.55 consensus estimate. Revenue of $5.0 billion reflected 7.2% growth compared with the prior-year period.
For the full fiscal year 2026, the company now expects adjusted EPS between $6.70 and $7.10, a range whose $6.90 midpoint clears the $6.67 analyst consensus. Full-year net sales guidance was held steady at $20.5 billion to $20.7 billion.
A 4.5% rise in average transaction size pushed comparable store net sales up 3.5% for the period, even as shopper traffic slipped 1.0%. Operating income rose 23% to $473.3 million, and operating margin expanded 120 basis points.
On the cost side, favorable freight rates, better mark-on, and a reduction in shrink lifted gross margin, though those benefits were tempered by tariff-related expenses and a rise in markdowns, the company said.
"Our first quarter results reflect continued progress across the business and demonstrate the strength of Dollar Tree's position as the preferred destination for value, convenience, and discovery," CEO Mike Creedon said in a statement.
The chain has steadily rolled out a multi-price model, stocking merchandise at $3 to $5 rather than clustering around its historic roughly $1 threshold, according to Bloomberg. The company ended the quarter with approximately 5,900 multi-price stores, after converting or adding about 630 locations to the format during the period, and operated 9,382 stores in total across its U.S. and Canada banners.
The company opened 113 new stores during the quarter and returned $595 million to shareholders through share repurchases. It also generated $392 million in free cash flow.
Second-quarter adjusted EPS is projected in a range of $1.00 to $1.15, with comparable store net sales growth anticipated between 2.5% and 3.5%, the company said.