#Dollar Tree Reports Q4 and FY 2025 Results
Dollar Tree, Inc. (NASDAQ: DLTR) reported financial results for its fourth quarter and full fiscal year 2025 on March 16, 2026, disclosing net sales of $5.45 billion for the quarter ended January 31, 2026 and $19.4 billion for the full year. The Chesapeake, Virginia-based discount retailer also introduced guidance for fiscal year 2026.
The company's results are now reported on a continuing operations basis following the July 5, 2025 sale of its Family Dollar segment, which is reflected as a discontinued operation in the financial statements. The figures below represent the Dollar Tree segment and corporate operations only.
#Fourth Quarter Results
Quarterly net sales rose 9.0% compared to the same period a year earlier. Comparable store net sales increased 5.0%, driven by a 6.3% rise in average ticket, partially offset by a 1.2% decline in customer traffic. Gross profit margin expanded 150 basis points to 39.1%, which the company attributed to pricing initiative gains and lower domestic and import freight costs. Those benefits were partially offset by higher tariff costs, the company noted.
Diluted earnings per share from continuing operations were $2.56 for the quarter, compared to $1.86 in the prior-year period. On an adjusted basis, which excludes strategic review costs and changes to estimated software termination costs, adjusted diluted EPS was also $2.56, up 21.3% from the adjusted figure of $2.11 in the year-ago quarter.
Operating income totaled $694.7 million. The company held $717.8 million in cash and cash equivalents as of January 31, 2026, with no commercial paper outstanding and no outstanding credit facility borrowings.
#Full-Year Fiscal 2025 Results
For the 52 weeks ended January 31, 2026, net sales increased 10.4% to $19.4 billion. Full-year comparable store net sales grew 5.3%, driven by a 4.3% increase in average ticket and a 1.0% rise in traffic. Gross profit margin rose 60 basis points year over year.
Full-year diluted EPS from continuing operations was $5.94. Adjusted diluted EPS was $5.75, a 13% increase from the prior year's adjusted figure of $5.10. The company generated $2.2 billion in net cash from operating activities of continuing operations and approximately $1.1 billion in free cash flow, a non-GAAP measure calculated as operating cash flow less capital expenditures.
The company opened 402 new stores in fiscal 2025 and converted or added approximately 2,400 stores to its Dollar Tree 3.0 multi-price format, ending the fiscal year with approximately 5,300 multi-price locations across its network of 9,282 stores.
During fiscal 2025, Dollar Tree repurchased approximately $1.548 billion of its common stock. During fiscal 2025, Dollar Tree repurchased approximately $1.548 billion of its common stock. The company said quarter-to-date repurchases totaled approximately $193 million as of March 16, 2026. As of January 31, 2026, $1.8 billion remained under its existing repurchase authorization.
#Industry Context
Dollar Tree operates in the value retail segment, which includes competitors such as Dollar General and Five Below. The discount retail category has drawn increased consumer interest during periods of elevated inflation and economic uncertainty, as price-sensitive shoppers seek lower-cost alternatives to traditional grocery and general merchandise retailers. Dollar Tree's multi-price format expansion reflects a broader industry effort to move beyond fixed single-price points, a model that came under strain as product costs rose in recent years.
#Fiscal 2026 Guidance
The company issued the following guidance for fiscal 2026, all on a continuing operations basis. Management stated it expects net sales of $20.5 billion to $20.7 billion, comparable store net sales growth of 3% to 4%, approximately 400 new store openings, and adjusted diluted EPS of $6.50 to $6.90. For the first quarter of fiscal 2026, the company guided for net sales of $4.9 billion to $5.0 billion, comparable store sales growth of 3% to 4%, and adjusted diluted EPS of $1.45 to $1.60.
The company noted that its gross margin outlook for fiscal 2026 reflects the tariff environment in effect as of February 19, 2026, and assumes no incremental share repurchases in its diluted share count estimate.