Investing.com -- Dollar Tree Inc. (NASDAQ: DLTR) reported first quarter results that exceeded analyst expectations and raised its full-year earnings outlook, sending shares up 11.2% premarket as investors responded positively to the discount retailer's strong performance and improved profitability.

The company posted adjusted earnings per share of $1.74, beating the analyst consensus of $1.55 by $0.19. Revenue reached $4.97 billion, matching analyst estimates and representing a 7.2% increase YoY. Comparable store net sales grew 3.5%, driven by a 4.5% increase in average ticket, partially offset by a 1.0% decline in traffic.

Dollar Tree raised its fiscal 2026 adjusted EPS guidance to a range of $6.70 to $7.10, with a midpoint of $6.90 that exceeds the analyst consensus of $6.67. The company maintained its revenue outlook of $20.5 billion to $20.7 billion, with the midpoint of $20.6 billion slightly below the consensus of $20.64 billion.

For the second quarter, the company expects adjusted EPS of $1.00 to $1.15, with a midpoint of $1.08 that surpasses the analyst estimate of $0.99.

"Our first quarter results reflect continued progress across the business and demonstrate the strength of Dollar Tree's position as the preferred destination for value, convenience, and discovery," said Mike Creedon, Chief Executive Officer.

Operating income margin expanded 120 basis points versus the first quarter of fiscal 2025, reaching $473.3 million. The improvement was primarily driven by higher mark-on, lower freight costs, and lower shrink, partially offset by higher tariff costs and higher markdowns. Adjusted operating income increased 22% YoY.