Dollar General, Dollar Tree Raise Earnings Outlook as Tariff Refunds Boost Quarterly Bottom-Lines

MT newswire2026/08/27 14:32

By:MT newswire

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10:32 AM EDT, 08/27/2026 (MT Newswires) -- Dollar General (DG) and Dollar Tree (DLTR) raised their full-year earnings outlooks on Thursday as the discount retailers' bottom-lines benefitted from tariff refunds in the fiscal second quarter. Dollar General now anticipates earnings between $7.80 and $8 per share for fiscal 2026, up from $7.20 to $7.45 previously expected. The current consensus on FactSet is for EPS of $7.39. The stock rose 4.7% in Thursday trade. Revenue is expected to grow by 4% to 4.3% for the ongoing fiscal year, compared with the prior guidance that called for an increase of 3.7% to 4.2%. Same-store sales are seen rising 2.5% to 2.9% versus the previous outlook for a 2.2% to 2.7% gain. The Street is looking for revenue to rise by 4% and same-store sales to rise by 2.4%. For the three months through July, Dollar General's EPS jumped 33% year over year to $2.48. The result included a tariff refund-related benefit of about $0.25 per share, the retailer said. Sales improved 5.2% to $11.29 billion, ahead of the Street's view for $11.2 billion. Same-store sales were up 3.5%, ahead of the market's estimate that called for growth of 2.6%, buoyed by gains in customer traffic and average transaction amount. "Our results reflect continued momentum across the business, including our fifth consecutive quarter of customer traffic growth and the sixth consecutive quarter of positive comparable sales growth across all four merchandising categories," Chief Executive Todd Vasos said in a statement. Oppenheimer expected Dollar General to report robust quarterly results "with continued broad-based category momentum," according to a client note sent earlier in the week Separately, Dollar Tree raised its fiscal 2026 adjusted EPS outlook to a range of $7.70 to $8.05, including a $0.60 benefit from tariff-related refunds. It previously expected EPS of $6.70 to $7.10. The consensus on FactSet is for non-GAAP EPS of $7.07. The retailer continues to project sales between $20.5 billion and $20.7 billion for the ongoing fiscal year, with comparable sales growth of 3% to 4%. The Street expects sales of $20.64 billion and same-store sales growth of 3.5%. For the quarter ended Aug. 1, Dollar Tree's adjusted EPS surged to $2.70 from $0.77 the year before, driven by a tariff refund benefit of $1.31. Analysts were estimating non-GAAP EPS of $1.15. Overall revenue improved 7% to $4.89 billion, ahead of the Street's view for $4.86 billion. Same-store net sales rose 3.7% amid gains in average ticket, while the market expected a 3.2% rise. "Positive traffic trends helped drive strong comparable sales growth and EPS exceeded the high end of our outlook," according to CEO Mike Creedon. Dollar Tree forecasts EPS of $0.80 to $0.95 on a sales range of $5 billion to $5.1 billion for the ongoing quarter. The Street is looking for GAAP EPS of $1.37 and non-GAAP EPS of $1.40 on sales of $5.04 billion. Comparable store sales are forecast to grow by 3% to 4%, while the market's current view is for a gain of 3.6%. Shares of the company rose 4% intraday Thursday. Price: 128.04, Change: +5.24, Percent Change: +4.26

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