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Dollar Tree posted solid Q2 (Jul) results, delivering a beat on both EPS and revenue, and raised FY26 guidance across the board. It also lifted full-year comp sales guidance to +4-6% (from +3-5%). However, a flat Q3 EPS outlook and continued tariff volatility tempered investor enthusiasm.

• A major milestone was achieved with the July 5 sale of Family Dollar, allowing DLTR to focus entirely on its core Dollar Tree brand. Management says this focus is already improving execution, pricing, and product mix.
• Q2 same-store sales rose +6.5%, beating guidance for the second straight quarter—despite no major holidays or events. Growth was well-balanced between traffic and ticket and across consumables and discretionary.
• Standouts included seasonal items, party balloons, and personal care. Notably, higher-income shoppers ($100K+ households) now make up nearly two-thirds of new customers.
• CEO Michael Creedon Jr., less than a year into the role, is prioritizing clean stores, stocked shelves, and an expanded assortment—all of which are driving traffic and trade-up behavior.
• On the cost side, tariff volatility remains a key headwind. China tariffs are at 30% (still not finalized), and rates from Vietnam, India, and Bangladesh have jumped since June. DLTR is responding by shifting sourcing, cutting unprofitable SKUs, and selectively raising prices.

Briefing.com Analysis:

DLTR's Q2 performance was strong, especially on comps and customer mix. However, the flat Q3 EPS guidance, ongoing tariff uncertainty, and cautious tone around consumer behavior have investors a bit cautious heading into 2H.