Q2 Rundown: Dollar Tree (NASDAQ:DLTR) Vs Other Non-Discretionary Retail Stocks

September 04, 2025 at 23:32 PM EDT

DLTR Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at non-discretionary retail stocks, starting with Dollar Tree (NASDAQ: DLTR).

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 8 non-discretionary retail stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

While some non-discretionary retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

Dollar Tree (NASDAQ: DLTR)

A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ: DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.

Dollar Tree reported revenues of $4.57 billion, up 12.3% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Dollar Tree achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 10% since reporting and currently trades at $100.21.

Is now the time to buy Dollar Tree? Access our full analysis of the earnings results here, it’s free.

Best Q2: Dollar General (NYSE: DG)

Appealing to the budget-conscious consumer, Dollar General (NYSE: DG) is a discount retailer that sells a wide range of household essentials, groceries, apparel/beauty products, and seasonal merchandise.

Dollar General reported revenues of $10.73 billion, up 5.1% year on year, outperforming analysts’ expectations by 0.5%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.2% since reporting. It currently trades at $108.84.

Is now the time to buy Dollar General? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: BJ's (NYSE: BJ)

Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE: BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.

BJ's reported revenues of $5.38 billion, up 3.4% year on year, falling short of analysts’ expectations by 1.9%. It was a slower quarter as it posted full-year EPS guidance slightly missing analysts’ expectations and a slight miss of analysts’ EBITDA estimates.

BJ's delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.6% since the results and currently trades at $96.06.

Read our full analysis of BJ’s results here.

Costco (NASDAQ: COST)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Costco reported revenues of $63.21 billion, up 8% year on year. This print was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also put up an impressive beat of analysts’ gross margin estimates.

The stock is down 4.8% since reporting and currently trades at $958.88.

Read our full, actionable report on Costco here, it’s free.

Target (NYSE: TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $25.21 billion, flat year on year. This number surpassed analysts’ expectations by 1.3%. Aside from that, it was a mixed quarter as it also logged full-year EPS guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.

Target had the slowest revenue growth among its peers. The stock is down 12% since reporting and currently trades at $92.71.

Read our full, actionable report on Target here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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