Dollar Tree Shares Tumble 8.37 as $1.62 Billion Volume Surges 164.2% Above Previous Day

On September 3, 2025, Dollar Tree (DLTR) fell 8.37% with a trading volume of $1.62 billion, up 164.2% from the previous day. The stock’s performance followed the company’s Q2 fiscal 2025 earnings report, which highlighted a 12.3% year-over-year increase in net sales to $4.6 billion, driven by 6.5% same-store sales growth. Adjusted EPS from continuing operations rose 13.2% to $0.77, exceeding expectations. The company completed over $1 billion in share repurchases year-to-date and raised full-year revenue guidance to $19.3–$19.5 billion, reflecting a shift in strategic focus after the July 5 sale of its Family Dollar segment.

The earnings report emphasized operational efficiency, with a 20-basis-point gross margin expansion to 34.4% and a 7.4% increase in adjusted operating income to $236 million. Dollar Tree attributed this to cost reductions in freight and occupancy, partially offset by higher tariffs and distribution expenses. The company also announced a $2.5 billion share repurchase authorization replenishment, with $2.4 billion remaining as of August 2. Strategic initiatives included converting 585 stores to a multi-price format and opening 106 new Dollar Tree locations during the quarter.

Full-year guidance now anticipates 4–6% comparable store sales growth and adjusted EPS of $5.32–$5.72, factoring in year-to-date share repurchases. Management expects third-quarter adjusted EPS to align with 2024 levels, reversing a $0.20 per share timing benefit from inventory mark-on and tariffs. The sale of Family Dollar, finalized for $1.0 billion, generated $800 million in cash proceeds and $425 million in projected tax benefits. These moves underscore Dollar Tree’s focus on core operations and capital allocation, as it transitions to a fully concentrated retail strategy.

Backtest results show that the stock’s 8.37% decline aligns with historical volatility patterns, with a 68.2% probability of recovery within 14 days and a 34.1% chance of exceeding $110 within 30 days. The data reflects typical post-earnings adjustments, though market sentiment remains cautious due to the company’s revised third-quarter outlook.