Overview

• Second‑quarter net sales rose to about $4.57 billion with same‑store sales up 6.5% and adjusted EPS of $0.77, including roughly a $0.20 timing benefit tied to tariffs.
• Full‑year guidance increased to $19.3–$19.5 billion in sales and $5.32–$5.72 in adjusted EPS, with comparable sales now seen up 4%–6%.
• Management said tariff costs will hit profitability later this year and guided third‑quarter adjusted EPS roughly flat year over year at about $1.12.
• Mitigation steps include sourcing shifts and selective price moves, with about 85% of sales at $2 or less; the company opened 106 stores and converted roughly 585 to a multi‑price format.
• Shares fell roughly 8%–9% on the update as analyst reactions split, with some trimming near‑term EPS but boosting longer‑term targets, and traffic gains included more middle‑ and higher‑income shoppers.