Dollar Tree(US:DLTR)2025-09-03 12:00Financial Performance - Adjusted diluted EPS from continuing operations was $0.77, including a $0.20 positive impact from tariff timing[6] - Dollar Tree segment gross margin expanded by 20 bps, but adjusted operating margin contracted by 20 bps[7] - Q2 2025 Dollar Tree GAAP operating margin was 8.0%, a decrease of 40 bps year-over-year; Non-GAAP operating margin was 8.1%, a decrease of 30 bps year-over-year[19, 20] - Dollar Tree sales per square foot reached $237 in Q2 2025[17] Sales and Comparable Store Sales - Dollar Tree comparable store sales increased by 6.5%, driven by a 3.0% increase in traffic and a 3.4% increase in average ticket[9] - Consumables comp increased by 6.7% and discretionary comp increased by 6.1%, the highest discretionary comp growth since Q4 2022[9] - Dollar Tree sales are projected to be between $19.3 billion and $19.5 billion for fiscal year 2025, with comparable sales growth of 4% to 6%[23] Real Estate and Store Operations - 106 new Dollar Tree stores were opened, bringing the total to 9,148 open stores[9] - 26 Family Dollar Combo stores were converted to full Dollar Tree stores, with the remaining 31 to be converted by year-end[9] - Approximately 400 new store openings are planned for fiscal year 2025[23] Capital Allocation and Balance Sheet - $145 million of YTD free cash flow from continuing operations and $666 million of cash and cash equivalents at quarter end[9] - 5.0 million shares were repurchased in Q2 for approximately $501 million, including excise tax, with an additional 0.6 million shares purchased for approximately $71 million after quarter end[9] - $1.0 billion of maturing May 2025 4.00% senior notes were paid off with cash on hand and commercial paper borrowings[9] - The sale of the Family Dollar business was completed for a purchase consideration of $1.0 billion, resulting in net proceeds of $800 million after adjustments[9]