Dollar Tree sales rose 7% to $4.9 billion; $1.31 of $2.70 EPS came from tariff refunds

Dollar Tree, Inc. (Nasdaq: DLTR) reported net sales of $4.9 billion for the second quarter ended August 1, 2026, up 7.0% from the year-earlier quarter. Comparable store net sales increased 3.7%, driven by a 3.3% increase in average ticket and a 0.4% increase in traffic. Operating income was $690 million. Diluted earnings per share was $2.70, including a $1.31 benefit related to the net impact of tariff refunds. Those figures are from the company’s August 27, 2026 earnings release, furnished the same day as Exhibit 99.1 to Form 8-K accession 0000935703-26-000108.

The company raised its fiscal 2026 adjusted diluted EPS outlook to a range of $7.70 to $8.05, including an approximate $0.60 benefit related to the net impact of tariff refunds, and guided net sales from continuing operations of $20.5 billion to $20.7 billion, based on comparable store net sales growth of 3% to 4%. Operating income margin expanded 900 basis points, including a 650 basis point benefit related to the net impact of tariff refunds. Dollar Tree returned $605 million to shareholders through share repurchases in the quarter. Results are presented on a continuing-operations basis after the Family Dollar sale.

The highlight table prints net sales of $4.9 billion and operating income of $690 million. The statements of operations print those same lines in millions; the table exacts sit in Figures and are not substituted here for the highlight rounding. Gross profit margin increased 850 basis points to 42.9% and included 680 basis points related to the net impact of tariff refunds. The remaining gross-margin improvement, the release says, was primarily lower tariff rates, favorable shrink, and occupancy leverage, partly offset by sales mix. Selling, general and administrative expenses decreased 40 basis points to 29.2% of total revenue and included 30 basis points of tariff-refund related reinvestment. Operating income margin was 14.1%.

The $1.31 per-share benefit is not a restated EPS line. A footnote defines the net impact of tariff refunds as IEEPA tariff refunds totaling $383 million, including $369 million in cost of sales and $14 million of interest in other income, net; reinvestment expenses totaling $22 million in cost of sales and $15 million in selling, general and administrative expenses; and $13 million of certain duties on aluminum pans and paper plates recorded in cost of sales, all net of tax. For this quarter, adjusted operating income and adjusted diluted EPS equal the GAAP prints of $690 million and $2.70; the year-earlier adjusted lines still exclude strategic-review costs. Income from continuing operations was $515 million. The company opened 75 new Dollar Tree stores, converted or added about 710 stores to the multi-price format, and ended the quarter with approximately 6,600 multi-price stores and 9,436 stores across Dollar Tree U.S. and Dollar Tree Canada.

Why it matters

More than the headline EPS and margin need the refund attached. Of the 900 basis points of operating-margin expansion, 650 basis points are the stated tariff-refund benefit. The fiscal 2026 adjusted EPS range of $7.70 to $8.05 still includes an approximate $0.60 refund benefit. For the third quarter, the company guided comparable net sales growth of 3% to 4% and diluted EPS of $0.80 to $0.95, including an approximate $0.50 impact related to tariff-refund reinvestments. Those are management outlooks, not reported results. This page does not subtract $1.31 from $2.70 to invent an ex-refund EPS, because the exhibit does not print that remainder.

Context

Continuing operations exclude Family Dollar, which the company sold on July 5, 2025. Transition services agreement income, net, was $18 million in the second quarter. Share repurchases were 5.6 million shares for $605 million, excluding applicable excise tax. As of August 1, 2026, $2.5 billion remained under the repurchase authorization, with $1.1 billion of cash and cash equivalents, no commercial paper outstanding, and no borrowings under the revolving credit facility. Year-to-date, net sales were $9.9 billion, up 7.1%, and diluted EPS from continuing operations was $4.44, including a $1.29 net benefit of tariff refunds. Mike Creedon, chief executive officer, said positive traffic trends helped drive comparable sales growth and that EPS exceeded the high end of the company’s outlook. A conference call was scheduled for 8:00 a.m. Eastern Time on August 27, 2026. This page uses the furnished release; it does not invent Q&A.