Dollar Tree beats earnings, raises outlook with strong sales and margin growth

Dollar Tree reported better-than-expected earnings with same-store sales up 3.5% and a 120 basis point increase in gross margin to 36.9%, driven by price hikes, lower freight costs, and less shrinkage. The company raised its earnings per share growth forecast to 20% for the year and trades at a forward P/E of 15.9x with a solid balance sheet. This strong performance and outlook have led analysts to rate Dollar Tree shares as a Buy, signaling confidence in continued growth and profitability.