Investing.com -- On Monday morning, Dollar Tree Inc. (NASDAQ: DLTR) reported fourth-quarter results that exceeded Wall Street expectations, but shares fell as the company's fiscal 2026 guidance disappointed investors.

Shares are currently down around 3% in premarket trading. The discount retailer posted adjusted earnings per share of $2.56 for the fourth quarter ended January 31, beating the analyst consensus of $2.53 by $0.03. Revenue reached $5.5 billion, surpassing the $5.46 billion estimate and representing a 9% increase from the prior year period.

Comparable store net sales grew 5%, driven by a 6.3% increase in average ticket, partially offset by a 1.2% decline in traffic.

However, the company's outlook for fiscal 2026 fell short of expectations. Dollar Tree projected adjusted EPS of $6.50 to $6.90, with a midpoint of $6.70 that trails the analyst consensus of $6.74. The company also guided fiscal 2026 revenue to $20.5 billion to $20.7 billion, with the $20.6 billion midpoint slightly below the $20.69 billion consensus. For the first quarter, Dollar Tree expects adjusted EPS of $1.45 to $1.60 and comparable store net sales growth of 3% to 4%.

"Our strong results this quarter show that Dollar Tree remains America's retail destination for value, convenience, and discovery – underscored by our 20th consecutive year of positive same store sales," said Mike Creedon, Chief Executive Officer.

Gross profit margin expanded 150 basis points to 39.1% in the quarter, primarily driven by improved pricing initiatives and lower freight costs, partially offset by higher tariff costs. Operating income increased 30.2% to $695 million.

For the full fiscal year 2025, Dollar Tree generated net sales of $19.4 billion, up 10.4% YoY, with comparable store sales growth of 5.3%.