Dollar Tree, Inc. reported a notable increase in financial performance for the 13 weeks ended May 2, 2026, with net sales reaching $4,970.5 million, a 7.2% rise from $4,636.5 million in the same period last year. The company's total revenue also increased to $4,975.8 million, up from $4,639.7 million. Operating income saw a significant boost, climbing 23.2% to $473.3 million, while income from continuing operations rose to $347.3 million, or $1.76 per diluted share, compared to $313.5 million, or $1.47 per diluted share, in the prior year.
The increase in net sales was primarily driven by a 3.5% rise in comparable store sales and an additional $259.0 million from non-comparable stores. Gross profit increased by 10.9% to $1,829.5 million, with a gross profit margin improvement of 120 basis points to 36.8%. However, selling, general, and administrative expenses also rose by 9.0% to $1,382.6 million, leading to a slight increase in the expense rate as a percentage of total revenue to 27.8%. The effective tax rate decreased to 24.9%, down from 25.9% in the previous year.
In terms of strategic developments, Dollar Tree continues to adapt following the sale of its Family Dollar business in July 2025. The company is focusing on enhancing its product assortment and improving operational efficiencies. Notably, it has implemented a transition services agreement with Family Dollar, generating $21.1 million in income during the quarter. The company also reported a significant reduction in interest expenses, down 28.2% to $16.3 million, attributed to the repayment of previous debt obligations.
Operationally, Dollar Tree expanded its store count to 9,382 locations, up from 9,016 a year earlier, with 113 new stores opened during the quarter. The average size of new stores was approximately 9,230 selling square feet. The company is also investing in its supply chain, with ongoing construction of new distribution centers in Phoenix, Arizona, and Marietta, Oklahoma, aimed at enhancing operational capacity and efficiency.
Looking ahead, Dollar Tree anticipates continued growth driven by its strategic initiatives, including store expansion and product assortment enhancements. The company is also focused on managing cost pressures and improving customer engagement through data-driven marketing. However, it acknowledges potential challenges from inflation and tariff impacts, which may affect future profitability. The company remains committed to optimizing its operations and enhancing the shopping experience for its customers.
About DOLLAR TREE, INC.
Dollar Tree, Inc. operates discount retail stores offering a wide range of low-cost consumables, seasonal, and discretionary products across the U.S. and Canada. Its core value lies in providing high-value, everyday essentials and treasure hunt shopping experiences. The company emphasizes efficient supply chain management, store expansion, private label offerings, and a strong customer focus to maintain competitive advantage in the value retail sector.
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