Dollar Tree is feeling upbeat about its future.
In a presentation during its annual Investor Day event in New York City on Oct.15, the discounter offered a three-year outlook that yields a 12% to 15% compounded annual growth rate in earnings per share for fiscal years 2026 to 2028. (The outlook is based upon underlying annual EPS growth of 8% to 10%, increased by the absence of recent discrete cost items tied to tariff mitigation, multi-price store conversions, lost distribution capacity, and the sale of Family Dollar).
Dollar Tree also affirmed its third-quarter and fiscal 2025 outlooks. In addition, the retailer provided business updates for the third quarter fiscal 2025 which included comparable same-stores sales growth of 3.8% quarter-to-date. It also said is has repurchased 2.8 million shares for $271 million quarter-to-date.
In July, Dollar Tree completed the sale of its struggling Family Dollar business to private equity firms Brigade Capital Management and Macellum Capital Management for an aggregate base purchase price of $1.01 billion in cash.
“We are excited about this new chapter in Dollar Tree’s history,” stated CEO Mike Creedon in an Investor Day press release. “Our ability to offer merchandise at a range of prices frees us to optimize our assortment. Our refreshed leadership team is energized, aligned, and committed. Our strategy is clear, and our ambition is bold — to build Dollar Tree for the next 40 years and beyond as a company that wins with customers, empowers associates, strengthens communities, and delivers exceptional long-term returns for shareholders.”
Dollar Tree operates more than 9,000 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces under the brands Dollar Tree and Dollar Tree Canada.