Dollar Tree Raises Outlook But Tariff Pressures Spark Investor Selloff

Dollar Tree Inc. (NASDAQ:DLTR) shares fell on Wednesday after the discount retailer posted stronger-than-expected second-quarter sales and earnings, as margin pressures from tariffs and a cautious profit outlook tempered investor sentiment.

The discount retailer’s second-quarter sales increased 12.3% to $4.567 billion, beating the consensus of $4.484 billion. Same-store net sales increased 6.5%, driven by a 3% increase in traffic and a 3.4% increase in average ticket.

Gross profit increased 12.9% to $1.6 billion and gross margin expanded 20 basis points to 34.4%, driven primarily by improved mark-on from pricing initiatives, lower domestic freight costs, lower occupancy costs due to sales leverage, and favorable mix, partially offset by higher tariff costs, markdowns, distribution costs, and shrink.

Also Read: Dollar Tree’s Q2 Outlook Looks Bright, Says Bullish Analyst

The company reported ...