Dollar Tree delivered a robust first quarter (QQ1 2025) with revenue of $4.64B, up 11.3% year over year, and adjusted EPS of $1.26, beating the top end of guidance. The company benefited from a 5.4% comparable store sales increase and a 7.4% increase in square footage from a year ago, driven by the expansion of the multi-price 3.0 format and stronger traffic fundamentals. Management highlighted accelerated unit share gains, strong holiday-driven sell-through (Valentine’s Day and Easter), and an expanding customer base (2.6 million new customers in Q1). However, near-term profitability is impacted by tariff-driven cost pressures and higher store-related investments as Dollar Tree progresses on its multi-price expansion and 3.0 conversions. The company reaffirmed its full-year outlook (net sales $18.5–$19.1B, comps 3–5%, adjusted EPS $5.15–$5.65) and flagged a near-term Q2 profit decline (down as much as 45–50% year-over-year) before a back-half recovery as mitigation levers take effect. The planned Family Dollar separation remains on track for an early summer close, with TSA earnings expected to contribute meaningfully in the second half of 2025. Overall, Dollar Tree is navigating a volatile inflationary environment with a resilient value proposition, a scalable multi-price model, and a clear path to profitability that is highly dependent on successful monetization of its 5-lever cost-mitigation framework and accelerated store renovations and conversions.