| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 78 | 14.4x | 17.8x | Top tier | |
Growth | 79 | 8.2% | 7.1% | Top tier | |
Quality | 85 | 15.4% | 4.5% | Top tier | |
Safety | 65 | 2.3x | 2.6x | Around median | |
Capital Return | 64 | — | 2.12% | Around median | |
Momentum | 64 | 33.0% | 2.9% | Around median | |
Sentiment | 72 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Dollar Tree operates a network of approximately 9,500 small-format retail stores and generates revenue by selling consumable and discretionary merchandise through a mix of low opening price points and multi-price offerings. The company’s value proposition combines affordability, convenience, and a sense of deal discovery, while expanding its assortment to include trusted brands and new categories that appeal to multiple income segments. In the second quarter of fiscal 2026, multi-price products’ contribution increased by approximately 400 basis points year over year to 17% of total sales.
In the second quarter of fiscal 2026, net sales grew 7% to $4.9 billion, driven by a 3.7% increase in same-store sales and a 3.3% contribution from net new store growth. Average ticket increased 3.3% and traffic improved 0.4%, while consumables recorded same-store sales growth of 5.8% versus 1.6% for discretionary merchandise. Net income according to EDGAR data was approximately $514.5 million, and adjusted diluted earnings per share were $2.70, compared with management’s previous guidance of $1.00–$1.15.
Gross profit according to EDGAR data was approximately $2.1 billion in the second quarter of fiscal 2026, and the gross margin reported on the call expanded by 850 basis points to 42.9%, while adjusted operating margin expanded by 890 basis points to 14.1%. However, 680 basis points of the gross margin improvement and 650 basis points of the operating margin improvement were related to the net impact of tariff refunds, their reinvestment, and specific charges; the company received $383 million in refunds, recognizing a $369 million benefit in gross profit and $14 million in other income, offset by $37 million of reinvestment during the quarter.
The average analyst price target is $135.71, compared with a wide target range of $101 to $155, and the stock carries a consensus “Buy” rating. The average is near the upper end of the 52-week range of $84.71–$142.40, while the highest target exceeds that level and the conservative case represented by the lowest target remains closer to the lower end of the range; Jefferies also upgraded its rating from “Underperform” to “Hold” on August 19, 2026, and raised its target from $85 to $135.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Net sales increased 7% to $4.9 billion, and same-store sales grew 3.7%, with traffic increasing 0.4% and average ticket rising 3.3%. Consumables achieved same-store sales growth of 5.8% versus 1.6% for discretionary merchandise, while net new store growth added 3.3% to sales. Improved shrink and fixed-cost leverage also helped, but tariff refunds had a significant impact on margins and earnings per share.
Dollar Tree received $383 million during the second quarter of fiscal 2026. Of this amount, $369 million was reflected in gross profit and $14 million in other income, while the company reinvested $37 million during the quarter. The net impact of these items and specific charges added $1.31 to quarterly earnings per share and 680 basis points to gross margin, and management expects a full-year net benefit of approximately $0.60 per share after reinvesting approximately $210 million during fiscal 2026.
Management expects annual sales of between $20.5 billion and $20.7 billion and same-store sales growth of between 3% and 4%. The adjusted diluted earnings per share range is between $7.70 and $8.05 and includes a net benefit of approximately $0.60 related to tariff refunds. For the third quarter of fiscal 2026, the company expects sales of between $5.0 billion and $5.1 billion and earnings per share of between $0.80 and $0.95, including a negative impact of approximately $0.50 from reinvesting the refunds.
Automated analysis for informational purposes only — not investment advice.
Multi-price products accounted for 17% of total sales in the second quarter of fiscal 2026, an increase of approximately 400 basis points year over year. This strategy gives the company flexibility to sell products such as a hammer for $5, a seasonal item for $3, or a product for $1 while preserving the value proposition. Previous pricing actions and the increased penetration of multi-price products contributed to a 3.3% increase in average ticket, while management said the 40th-anniversary $1 offerings were limited in scope and were not the primary driver of same-store sales growth.
The proportion of stores classified as needing improvement declined from approximately half of the network in October 2025 to about one-third in August 2026. Improvements included product availability, ease of shopping, store recovery, and location-level planning, and their impact appeared in shrink results that were better than both the previous year and management’s expectations. Inventory also declined 9% year over year despite 7% sales growth, and free cash flow reached $675 million in the second quarter of fiscal 2026.
Management expects gross margin to be approximately flat in the third quarter of fiscal 2026 and then to decline in the fourth quarter due to fuel, freight, inflation, and a lower-margin sales mix. The helium shortage also reduced second-quarter sales by approximately $15 million, or 30 basis points, and the company did not assume a near-term supply recovery. In addition, approximately one-third of stores remain below internal standards, while maintaining attractive prices as competitors reinvest in price requires a careful balance between customer traffic and margins.
