Dollar Tree Turns To Profit In Q4, Sees Higher Comps In Q1, FY26; Stock Down

(RTTNews) - Discount retailer Dollar Tree Inc. reported Monday a net profit in its fourth quarter, compared to prior year's hefty loss, related to the divestment of Family Dollar segment. Income from continuing operations increased amid higher net sales and same-store net sales. Further, the firm issued first quarter and fiscal 2026 outlook, expecting growth in same store sales, but softer than last year.

In pre-market activity, the shares were losing around 2.6 percent to trade at $104.70.

Mike Creedon, Chief Executive Officer for Dollar Tree, stated, "Our strong results this quarter show that Dollar Tree remains America's retail destination for value, convenience, and discovery - underscored by our 20th consecutive year of positive same store sales. By delivering great value at low prices, with disciplined execution, we continue to expand our reach and drive long-term growth."

Looking ahead for the first quarter, the company expects adjusted earnings per share in the range of $1.45 to $1.60.

The Company expects net sales from continuing operations for the first quarter will range from $4.9 billion to $5.0 billion, based on comparable store net sales growth in the range of 3 percent to 4 percent. Further, for fiscal 2026, the company expects adjusted earnings per share in the range of $6.50 to $6.90.

Net sales from continuing operations are expected in the range of $20.5 to $20.7 billion, based on comparable store net sales growth in the range of 3 to 4 percent.

In fiscal 2025, adjusted earnings per share were $5.75 and net sales were $19.4 billion, with same-store sales growth of 5.3 percent.

In the fourth quarter, net income was $506.1 million or $2.53 per share, compared to prior year's loss of $3.70 billion or $17.17 per share.

The latest results included loss from discontinued operations of $5.6 million, compared to last year's loss of $4.10 billion reflecting the Family Dollar segment as discontinued operations.

On a continuing operations basis, income was $511.7 million or $2.56 per share, compared to last year's $400.2 million or $1.86 per share.

Adjusted income from continuing operations was $512.1 million or $2.56 per share, compared to $2.11 a year ago.

Operating income increased 30.2 percent, and adjusted operating income increased 10.7 percent.

Total revenue grew to $5.451 billion from last year's $5 billion.

Net sales increased 9 percent to $5.446 billion from last year's $5 billion. Same-store net sales increased 5.0 percent, driven by a 6.3 percent increase in average ticket, partially offset by a 1.2 percent decline in traffic.

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