Dollar Tree Inc. reported a robust first quarter for fiscal 2025, with revenue reaching $4.64 billion and adjusted earnings per share (EPS) of $1.26, surpassing analyst expectations. Same-store sales increased by 5.4%, reflecting strong consumer demand.
However, the company warned of significant challenges ahead. For the second quarter, Dollar Tree projects a decline in adjusted EPS by as much as 45% to 50% year-over-year, primarily due to increased tariffs on imported goods. The majority of Dollar Tree's directly imported products come from China, which are now subject to tariffs up to 145%.
In response, Dollar Tree is implementing mitigation strategies, including negotiating lower costs with suppliers and adjusting pricing structures. Despite near-term pressures, the company raised its full-year adjusted EPS guidance to a range of $5.15 to $5.65, up from the previous $5.00 to $5.50, citing expectations of improved conditions in the latter half of the year.
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