Dollar Tree Inc. reported first-quarter net sales of $4.64 billion, up 11.3% year-over-year, with adjusted earnings per share of $1.26, both exceeding analyst expectations. Same-store sales increased 5.4%, driven by 2.5% higher store traffic and a 2.8% increase in average ticket size. The company warned that second-quarter adjusted profit could decline by as much as 45% to 50% compared to the previous year, due to about $70 million in additional costs from U.S. tariffs on Chinese imports, which reached 145% earlier in the year before being reduced. Dollar Tree shares fell more than 10% following the outlook. Dollar Tree raised its full-year earnings guidance to $5.15–$5.65 per share, up from a prior range of $5.00–$5.50, and maintained its annual sales outlook of $18.5–$19.1 billion. The company expects earnings growth to resume in the second half of the year as it mitigates most of the incremental margin pressure from tariffs and other input costs. The company added 2.6 million new customers in the quarter, most from households earning over $100,000 annually, and is expanding its multi-price strategy, offering goods up to $7. Dollar Tree is also in the process of selling its Family Dollar unit for $1 billion, with the sale expected to close in the second quarter. Dollar General reported record quarterly sales of $10.44 billion, upgraded its annual outlook, and saw its stock rise 44% year-to-date. The retailer observed that 36% of its customers visit at least three times a month and plans to open 600 new stores this year. Both Dollar Tree and Dollar General are seeing increased visits from middle- and higher-income shoppers as consumers seek value amid inflation and tariff pressures.