By Connor Hart

Dollar Tree logged higher profit and revenue in its fiscal first quarter, as consumers continued to rely on the company for low-cost goods.

The discount-store operator on Thursday posted a profit of $347.3 million, or $1.76 a share, for its quarter ended May 2, compared with a profit of $343.4 million, or $1.61 a share, a year earlier.

Stripping out one-time items, earnings were $1.74 a share. Analysts polled by FactSet expected adjusted earnings of $1.53 a share.

Revenue rose 7.2% to $4.98 billion, just ahead of Wall Street models for $4.96 billion.

Comparable sales--which account for store openings and closings--climbed 3.5%, driven by a 4.5% increase in average ticket and partially offset by a 1% decline in traffic. Analysts were looking for same-store sales to gain 3.3%.

"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," Chief Executive Mike Creedon said.

He added that the company continues to make progress against its strategic initiatives by updating its assortment, managing costs, fostering strong consumer connections and improving stores.

Shares rose 11% to $106 in premarket trading.

Looking ahead, Dollar Tree guided for adjusted earnings of $1 to $1.15 a share on sales of $4.8 billion to $4.9 billion during the current quarter. Analysts are forecasting adjusted earnings of 99 cents a share on sales of $4.83 billion.

Comparable sales are expected to be up 2.5% to 3.5% in the quarter, compared with analyst views for a 2.8% increase.

For the year, the company now expects adjusted earnings of $6.70 to $7.10 a share, up from a prior forecast of $6.50 to $6.90 a share. It backed its full-year outlook for net sales of $20.5 billion to $20.7 billion, and for comparable sales to grow 3% to 4%.

Analysts are looking for adjusted earnings of $6.67 a share, sales of $20.62 billion and comparable sales up 3.3% for the fiscal year.

Separately, Dollar Tree on Thursday announced a partnership with DoorDash, and is now offering on-demand delivery from its full U.S. footprint of stores through the platform.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 28, 2026 07:06 ET (11:06 GMT)

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