Shares of Dollar Tree declined Thursday as disappointing quarterly guidance overshadowed the discount retailer's big win from tariff refunds that boosted earnings.

The company posted adjusted earnings of $2.70 a share in its fiscal second quarter ended Aug. 1, up from 77 cents a year ago and well above Wall Street expectations for $1.15. Net sales grew 7% to $4.9 billion, narrowly beating the analyst consensus call for $4.86 billion, according to FactSet.

Dollar Tree said quarterly earnings included a benefit of $1.31 a share from tariff refunds. The company said tariff refunds overall totaled $383 million in the quarter.

While the quarterly earnings were impressive, guidance for the fiscal third quarter wasn't.

The discount retailer expects earnings between 80 cents and 95 cents a share, including about a benefit of 50 cents a share from tariff refunds. Wall Street forecast earnings of $1.40 a share. The company sees net sales of $5 billion to $5.1 billion.

Dollar Tree also raised its fiscal-year outlook and expects adjusted earnings of $7.70 to $8.05 a share, with a benefit of 60 cents from tariff refunds. The company previously forecast fiscal-year earnings of $6.70 to $7.10 a share.

Dollar Tree stock fell 3.4% to $127.70 in premarket trading on Thursday after ending Wednesday down 1.7%. Shares were up 7.5% this year as of the closing bell on Wednesday.

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A rose by any other name may smell just as sweet, but don't mix up your dollar stores.

While Dollar General has struggled in 2026, Dollar Tree has held its own: It hasn't quite matched the S&P 500, but it has outperformed other retailers that are tracked by the State Street SPDR S&P Retail exchange-traded fund. Those gains show that its transition to selling higher priced items is working, although its second-quarter results will be the latest test of the strategy.

Dollar Tree shares soared after reporting first-quarter earnings and announcing a delivery partnership with DoorDash in May. Although Dollar Tree sells fewer essentials than discretionary items, which lower-income shoppers might be avoiding amid higher gas prices, it benefits from higher-income consumers trading down.

By moving beyond offering only $1 items, it can offer a wider range of merchandise. However, that means it also puts itself more squarely up against other discounters like Dollar General and Walmart, and the latter's disappointing results last week are concerning. Some traffic weakness in recent quarters-along with the need to look past the temporary benefits of tariff refunds-means that same-store sales could be the key item in focus for investors, as it has been for many other retailers this season.