Dollar Tree jumps 17% after Q1 beat, DoorDash deal

Dollar Tree shares jumped about 17% on Thursday after the discount retailer reported stronger-than-expected fiscal first-quarter results, raised its full-year profit outlook and announced an on-demand delivery partnership with DoorDash.

For the quarter ended May 2, Dollar Tree posted adjusted earnings of $1.74 per share, up from $1.26 a year earlier and above the analyst estimate of $1.53. Revenue rose 7.2% year over year to $5.0 billion. Comparable-store sales increased 3.5%, the company’s seventh consecutive quarter of comparable-sales growth.

Gross margin expanded 1.2 percentage points, driven by higher merchandise markups, lower freight costs and reduced shrink. Those gains were partly offset by higher tariff expenses and increased markdown activity. Customer traffic fell 1% year over year while average transaction value rose 4.5%.

Dollar Tree raised its full-year adjusted earnings guidance to $6.70 to $7.10 per share, up from a prior range of $6.50 to $6.90, and maintained a same-store sales outlook of 3% to 4%. The company expects adjusted earnings of $1.00 to $1.15 per share for the current quarter and reaffirmed plans to open 400 new stores and close 75 locations this year.

DoorDash will provide on-demand delivery from Dollar Tree stores across the U.S. Dollar Tree already offers same-day delivery through Uber Eats and Instacart.

On the earnings call, Chief Executive Mike Creedon noted, “Customers are shopping thoughtfully and closer to need, with a continued focus on affordability, convenience and trip efficiency.” He added that demand is strong for holiday items and growing across everyday categories such as toys, beverages, home décor and household consumables.

Thursday’s rally was the best single-day performance for Dollar Tree stock in nearly four years. The gain followed a drop of more than 22% earlier in 2026 and came ahead of rival Dollar General’s upcoming earnings report.