Overview

• Second-quarter revenue reached $4.567 billion with adjusted EPS of $0.77, topping estimates on stronger traffic and larger baskets.
• Comparable sales rose 6.5% as traffic increased 3.0% and average ticket grew 3.4%, while gross margin improved 20 basis points to 34.4% on pricing and lower freight costs.
• Full-year targets moved up to $19.3 billion–$19.5 billion in sales and $5.32–$5.72 in adjusted EPS, with comparable sales now expected to grow 4%–6%.
• Management guided third-quarter adjusted EPS to be roughly in line with last year’s $1.12 as an approximate $0.20 second-quarter timing benefit reverses and tariff costs weigh on margins.
• Shares fell about 8%–9% intraday as investors focused on tariff uncertainty, even as the company advances its strategic reset following the July sale of Family Dollar and continues store conversions.