Dollar Tree, Inc. (NASDAQ: DLTR) Q1 2025 Earnings Call | 6/4/2025

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Dollar Tree, Inc. (NASDAQ: DLTR) reported strong Q1 2025 results on June 4, 2025, highlighted by an 11.3% year-over-year increase in net sales to $4.6 billion and a 5.4% rise in same-store net sales, driven by 2.5% higher customer traffic and a 2.8% increase in average ticket size. Diluted earnings per share (EPS) from continuing operations was $1.47, with adjusted diluted EPS at $1.26—both exceeding analyst expectations. Gross margin improved by 20 basis points to 35.6%, supported by lower freight costs, improved mark-on, and reduced occupancy expenses, partially offset by higher distribution and markdown costs. The company opened 148 new Dollar Tree stores and converted approximately 500 locations to its 3.0 multi-price format, reflecting ongoing strategic transformation. Over $500 million in share repurchases were completed year-to-date. Dollar Tree generated $379 million in net cash from operating activities and $130 million in free cash flow from continuing operations. The company reiterated its full-year net sales outlook of $18.5–$19.1 billion and raised its adjusted EPS guidance to $5.15–$5.65 to reflect the impact of share repurchases. The sale of the Family Dollar segment remains on track to close in Q2 2025, with Q1 results reported on a continuing operations basis (Dollar Tree only). CEO Mike Creedon emphasized the company’s resilience and ability to deliver value and convenience to customers, even amid economic uncertainty. Key Q1 2025 Highlights: Net sales: $4.6 billion (+11.3% YoY) Same-store sales: +5.4% (traffic +2.5%, ticket +2.8%) Diluted EPS: $1.47; Adjusted EPS: $1.26 Gross margin: 35.6% (+20 bps YoY) 148 new stores opened; ~500 stores converted to 3.0 format $500M+ in share repurchases YTD FY25 net sales outlook: $18.5–$19.1 billion; Adjusted EPS: $5.15–$5.65 Family Dollar sale expected Q2 2025 #DollarTree #DLTR #EarningsCall #Q12025 #RetailStocks #DiscountRetail #StockMarket #Investing #InsideTicker