Dollar Tree shares jump 17% after strong Q1 earnings

Shares of Dollar Tree surged Thursday following a strong first-quarter earnings report and an improved profit outlook for the fiscal year. The discount retailer’s stock rose approximately 17 percent, closing at around $113.

The company reported adjusted earnings per share of $1.74 for the quarter, surpassing analyst expectations. Revenue increased 7.2 percent year-over-year to $4.98 billion, also exceeding forecasts. Comparable store sales grew by 3.5 percent, driven by a 4.5 percent increase in average transaction value, despite a slight 1 percent decline in customer traffic.

Chief Executive Officer Mike Creedon said the results demonstrated continued progress and the strength of the company’s value proposition. He cited advancements in merchandise assortment, cost management, and store improvements as key drivers of performance.

In response to the results, Dollar Tree raised its full-year adjusted earnings per share guidance to a range of $6.70 to $7.10, up from its previous forecast of $6.50 to $6.90. The company maintained its net sales outlook for the year at $20.5 billion to $20.7 billion. For the current second quarter, the company provided earnings guidance of $1.00 to...