What to look for when Dollar Tree (DLTR) reports its Q1 2025 earnings results

Shares of Dollar Tree, Inc. (NASDAQ: DLTR) rose over 1% on Tuesday. The stock has gained 18% over the past three months. The discount store chain is scheduled to report its earnings results for the first quarter of 2025 on Wednesday, June 4, before the market opens. Here’s a look at what to expect from the earnings report:

Revenue

Dollar Tree has guided for revenues of $4.5-4.6 billion for the first quarter of 2025. Analysts are projecting revenues of $4.53 billion for the period. This signals a drop of over 40% from the same quarter a year ago. In the fourth quarter of 2024, revenues remained relatively unchanged year-over-year at $5 billion.

Earnings

Dollar Tree has guided for adjusted earnings per share of $1.10-1.25 for Q1 2025. Analysts are predicting EPS of $1.20 for the quarter. This compares to adjusted EPS of $1.43 reported in Q1 2024. In Q4 2024, adjusted EPS fell 15% YoY to $2.11.

Points to note

For the first quarter of 2025, Dollar Tree has guided for comparable store sales growth of 3-5%. In the fourth quarter of 2024, same-store sales increased 2%, driven by a 0.7% rise in traffic and a 1.3% increase in average ticket.

Dollar Tree is expected to continue to benefit from its multi-price assortment which caters to customers looking for value in tough economic times. Customers from all income groups tend to turn to discount stores in search of cost-effective alternatives during inflationary periods. Strength in the consumables category is expected to have continued in the first quarter.

Although the current tariff situation remains uncertain and volatile, Dollar Tree remains generally optimistic that its mitigation efforts can help prevent margin erosion over the long term.

Dollar Tree can also be expected to benefit from its new store openings, store remodelling efforts, and the expansion of its assortment. The discount retailer achieved a major milestone earlier this month reaching 9,000 stores, demonstrating its vast footprint. The divestiture of the Family Dollar business will help the company focus on driving growth at Dollar Tree. DLTR is anticipated to incur additional expenses related to the divestiture in Q1, which will weigh on the bottom line.