Dollar Tree issued a soft third-quarter outlook, guiding for adjusted earnings of 80 cents to 95 cents a share, pressured by a 50-cent-a-share impact from reinvesting tariff refunds. The forecast overshadowed stronger quarterly results, including profit of $514.5 million or $2.70 a share for the 13 weeks ended Aug. 1, up from $188.4 million a year earlier. Total revenue rose 7% to $4.89 billion, beating estimates, while comparable sales climbed 3.7%, driven by higher average ticket and traffic.

For the full year, Dollar Tree now expects adjusted earnings of $7.70 to $8.05 a share, up from prior guidance of $6.70 to $7.10, and reaffirms net sales of $20.5 billion to $20.7 billion. The new outlook includes a roughly 60-cent-a-share benefit from tariff refunds. Chief Executive Mike Creedon emphasized the company’s focus on value, convenience, and store improvements.

Rival Dollar General also reported rising profit and sales, citing continued consumer demand for low-cost goods.