Strong Q2 Performance: Dollar Tree reported a 12.3% increase in net sales to $4.6 billion with comparable store sales up 6.5%, exceeding expectations. Growth was well-distributed across traffic and ticket sizes, as well as between consumables (6.7% comp) and discretionary items (6.1% comp), demonstrating strong consumer demand despite a lack of major holiday events during the quarter.

Changing Customer Demographics: The company has added 2.4 million new customers over the last twelve months, with nearly two-thirds of these new shoppers coming from households earning $100,000 or more. This trend indicates that Dollar Tree is successfully appealing to a broader customer base, particularly higher-income consumers seeking value.

Tariff Mitigation Strategies: Dollar Tree is implementing five key strategies to counteract ongoing cost pressures due to tariffs, including negotiating with suppliers and changing country of origin for products. Management noted that the timing of cost impacts was initially misjudged, with benefits from mitigation initiatives realized sooner than expected, contributing positively to margins in Q2.