--- title: "Wells Fargo Flags Mixed Earnings Prospects for Dollar Stores Ahead of Reports" type: "News" locale: "en" url: "https://longbridge.com/en/news/296108630.md" description: "Wells Fargo forecasts mixed earnings for dollar-store retailers ahead of reports. Dollar Tree and Five Below are expected to outperform, benefiting from tariff relief and strong sales, with Wells Fargo raising price targets for both. Conversely, Ollie's Bargain Outlet faces headwinds, leading to lowered estimates and a reduced price target. Dollar General is projected to maintain momentum but may see margin compression. The sector shows divergent performance based on consumer demand and cost pressures." datetime: "2026-08-17T12:43:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296108630.md) - [en](https://longbridge.com/en/news/296108630.md) - [zh-HK](https://longbridge.com/zh-HK/news/296108630.md) generator: "portal-rs" --- # Wells Fargo Flags Mixed Earnings Prospects for Dollar Stores Ahead of Reports Wells Fargo has laid out its expectations for the next round of earnings reports in the dollar-store sector, signaling a split picture across the main players. The investment bank forecasts that while some retailers are likely to outperform, others may face hurdles that could temper their results. Dollar Tree (**DLTR**) appears positioned for a solid quarter with Wells Fargo estimating second-quarter earnings per share hitting $1.15, near the upper limit of guidance. This optimism is underpinned by a 3.3% increase in same-store sales and improving gross margins, bolstered by favorable tariff conditions expected to ease in the second half of the year. Alongside this, share repurchase programs are anticipated to accelerate, prompting Wells Fargo to raise its price target to $155 from $145. Five Below (**FIVE**) is spotted to outperform its Q2 guidance range, with EPS estimates exceeding $1.55 versus the company's $1.17 to $1.29 forecast. Same-store sales gains are projected to come in above the 7% to 9% target, reflecting continued consumer demand. Wells Fargo notes that while a full-year earnings boost seems likely, the potential for additional margin improvement exists due to reduced tariffs compared to last year, particularly in the latter half. Dollar General (**DG**) is expected to maintain momentum, with same-store sales growth anticipated to accelerate to roughly 3% in Q2. There's speculation that management could lift full-year sales guidance following these trends. However, Wells Fargo remains tentative about the stock's post-earnings reaction, signaling that gains might be trimmed due to increased investment in grocery categories and easing margin expansions as we move into 2027. Conversely, Ollie's Bargain Outlet (**OLLI**) faces a tougher road. Wells Fargo cut its Q2 earnings estimate to $1.04 driven by a forecasted 2% decline in same-store sales. The outlook for fiscal 2026 and 2027 has dimmed, reflected in downward revisions to EPS estimates and a reduced price target from $115 to $100. This signals increased headwinds relative to its peers in the discount retail space. The contrasting views between these four retailers paint a picture of a sector navigating shifting consumer behavior and cost pressures. Some chains are finding ways to leverage tariff relief and traffic gains, while others wrestle with slowing sales and margin compression. Wells Fargo's varied projections showcase that not all dollar stores are playing on equal footing in the current economic climate. It's also worth noting that investor expectations are running high for some of these names, adding an extra layer of complexity in interpreting upcoming results and market reactions. Whether companies like Dollar Tree and Five Below can meet or surpass these benchmarks without extending themselves remains to be seen. The divergence within this corner of retail hints at an interesting earnings season ahead, with some names potentially cruising higher and others stumbling on the retail runway. ### Related Stocks - [FIVE.US](https://longbridge.com/en/quote/FIVE.US.md) - [OLLI.US](https://longbridge.com/en/quote/OLLI.US.md) - [DLTR.US](https://longbridge.com/en/quote/DLTR.US.md) - [DG.US](https://longbridge.com/en/quote/DG.US.md) - [WFC.US](https://longbridge.com/en/quote/WFC.US.md) - [WFC-D.US](https://longbridge.com/en/quote/WFC-D.US.md) - [WFC-L.US](https://longbridge.com/en/quote/WFC-L.US.md) - [WFC-Y.US](https://longbridge.com/en/quote/WFC-Y.US.md) - [WFC-C.US](https://longbridge.com/en/quote/WFC-C.US.md) - [WFC-Z.US](https://longbridge.com/en/quote/WFC-Z.US.md) - [WFC-A.US](https://longbridge.com/en/quote/WFC-A.US.md) ## Related News & Research - [B. Metzler seel. Sohn & Co. AG Takes Position in Ollie's Bargain Outlet Holdings, Inc. $OLLI](https://longbridge.com/en/news/296675065.md) - [Paralel Advisors LLC Takes Position in Dollar Tree, Inc. $DLTR](https://longbridge.com/en/news/296604934.md) - [STARPRIME Completes Beta Testing of Market-Maker Model for Retail Brokers](https://longbridge.com/en/news/296307363.md) - [HireQuotient's EasySource Delivers 65% Reduction in Time to Fill, for North America's PE-Owned Retail Giant](https://longbridge.com/en/news/296604796.md) - [Meeder Advisory Services Inc. Makes New $892,000 Investment in Dollar Tree, Inc. $DLTR](https://longbridge.com/en/news/296467688.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**