Why Dollar Tree Shares Are Gaining On Wednesday
Dollar Tree, Inc. (NASDAQ:DLTR) traded higher in Wednesday’s premarket company executives reiterated third-quarter and fiscal 2025 guidance and outlined initiatives to accelerate growth following the Family Dollar sale.
CEO Mike Creedon detailed plans to sharpen merchandising at multiple price points, deepen store-level customer engagement, and expand distribution capacity to support unit growth.
The discount retailer opened its 2025 Investor Day at the Nasdaq MarketSite in New York, setting near-term priorities and a multi-year profit roadmap.
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Management projected fiscal 2026–2028 earnings per share to compound 12%–15% annually.
The long-term algorithm includes an 8%–10% base EPS growth target, augmented by tailwinds from discrete cost items rolling off, including prior tariff mitigation, multi-price conversion expenses, lost distribution capacity, and the effects of portfolio actions such as the Family Dollar exit.
Dollar Tree Fiscal 2026 Step-Up
The company expects EPS to increase at a high-teens percentage in fiscal 2026 as timing-related cost benefits are realized.
Executives said this inflection should reflect operational efficiencies, cleaner cost lines, and a more focused portfolio.
For the third quarter of fiscal 2025, Dollar Tree reported comparable same-store sales up 3.8% quarter-to-date and disclosed the repurchase of 2.8 million shares for $271 million.
Dollar Tree reaffirmed its third-quarter adjusted EPS outlook of $1.12, above the $1.09 consensus estimate.
The company noted that its third-quarter and full-year 2025 EPS outlooks do not yet incorporate the benefit of those buybacks.
“We are excited about this new chapter in Dollar Tree’s history,” Creedon said.
Price Action: DLTR shares are trading higher by 7.30% to $7.29 premarket at last check Wednesday.
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