DLTR Stock: BUY Call - Comps +3.5% Guide Raised +18% Pop Q1 FY2026

Dollar Tree Q1 FY2026 earnings breakdown - conversational walkthrough with a price-aware verdict and Wall Street consensus comparison. THE CALL: BUY (4/5 conviction, STRONG) - CURRENT @ $112.85 -> BUY - BUY below $110.00 with $92.00 stop - AVOID above $140.00 TRIGGER: Q2 FY26 print confirming comps hold at 3 percent or better and gross margin sustains the 120bp expansion WINDOW: 12-18 months as the multi-price format scales and tariff mitigation proves out WALL STREET CONSENSUS - Ratings: 8 Strong Buy / 11 Buy / 14 Hold / 5 Sell / 2 Strong Sell -> Hold - Median 12-month PT: $125.00 (range $80 - $165) THESIS Standalone Dollar Tree post Family Dollar is a comp-plus-margin compounder; +3.5 percent comps and +120bp gross margin proved the algorithm in the first clean quarter. Bull lever: Adjusted EPS up 38 percent; FY26 guide raised to 6.70 to 7.10 dollars; $595M returned via buyback retiring 5.5M shares; multi-price format scaling across 5,900 stores. Key risk: Tariffs on imported product threaten fixed-price economics if mitigation stalls. Traffic is down 1 percent; the comp is entirely ticket-driven. Multi-price conversion capex is rising. KEY METRICS - Q1 FY2026 (continuing operations; Family Dollar divested July 2025) - Net sales: $4.98B (+7.2% YoY) - Comparable store sales: +3.5% (ticket +4.5%, traffic -1.0%) - Adjusted EPS: $1.74 (vs $1.53 est, +13.7% beat, +38% YoY) - Gross margin: 36.9% (+120 bps YoY) - Operating margin: 9.5% (+120 bps YoY) - FY26 guide raised: $20.5-20.7B net sales / $6.70-7.10 adjusted EPS - Capital return: $595M buyback (5.5M shares); 9,382 stores DISCLAIMER This is for informational and educational purposes only. Not financial advice. Charged Alpha does not have a position in DLTR. #DLTR #DollarTree #earnings #investing #stocks #ChargedAlpha #retail #discountstores