Financial Data and Key Metrics Changes - Net sales increased by 12.3% to $4.6 billion, driven by a 6.5% comparable sales growth, which was balanced between traffic and ticket [7][20] - Adjusted EPS was $0.77, exceeding expectations, with strong performance across all income cohorts [8][19] - Gross margin increased by 20 basis points to 34.4%, aided by lower merchandise costs and favorable pricing [22] Business Line Data and Key Metrics Changes - Comparable sales for consumables rose by 6.7%, while discretionary items increased by 6.1%, indicating broad-based performance across categories [21] - The company completed 3,600 store conversions to the 3.0 format and is on track to reach approximately 5,000 by year-end [10] Market Data and Key Metrics Changes - The company added 2.4 million new customers over the last 12 months, with two-thirds coming from households earning $100,000 or more [9] - The number of shoppers visiting three or more times a month increased by 11% in Q2, showing improved customer engagement [9] Company Strategy and Development Direction - The company aims to continue rolling out its expanded assortment to drive higher traffic and ticket, while managing costs with agility [29] - The focus is on delivering value, convenience, and discovery for customers, particularly in a volatile economic environment [17][30] Management's Comments on Operating Environment and Future Outlook - Management noted the ongoing volatility in the consumer and retail landscape due to elevated tariffs and cost pressures, but expressed confidence in the company's ability to adapt [6][12] - The outlook for the second half of the year includes comparable sales growth of 4% to 6% and adjusted EPS of $5.32 to $5.72, assuming current tariff rates [26] Other Important Information - The company has opened 254 new stores this year and is on track to meet its target of approximately 400 new stores [15] - A new partnership with Uber Eats was announced, aimed at reaching a younger demographic [16] Q&A Session Summary Question: Concerns about consumer pushback on pricing and long-term margin risks - Management responded that customer traffic and ticket remain balanced, with strong performance from higher-income customers, indicating that the value proposition is resonating well [34] Question: Drivers of higher ticket and pricing actions - Management highlighted that despite taking some price increases, unit performance was better than expected, showing that customers still find value [38] Question: Guidance for the back half of the year and cost headwinds - Management explained the wide comp range due to market volatility and rising costs in general liability claims, but remains optimistic about performance [40][42] Question: Normalized EPS for the full year - Management noted the complexity of estimating normalized EPS due to various one-time items and tariff impacts, but emphasized maintaining gross margin [46][50] Question: Performance across income demographics - Management indicated strong performance from both higher-income and lower-income customers, with a balanced basket of consumables and discretionary items [53] Question: Multi-price strategy and purchasing decisions - Management acknowledged the agility of the buying team in navigating a volatile environment and emphasized the continued focus on delivering value at various price points [58] Question: Consumer challenges and TSA outlook - Management expressed caution regarding consumer spending due to rising costs but remains confident in Dollar Tree's value proposition [74][76]