Dollar Tree Inc. (NASDAQ:DLTR) reached a new peak, with its stock hitting a 52-week high of $108.99. The discount retailer’s strong year-to-date performance—up 44.6%—and a market cap of $22.7 billion reflect growing investor confidence as the company leans into strategic realignment and disciplined cost controls.
The latest milestone follows the completion of a major transaction: the divestiture of its Family Dollar segment. Dollar Tree sold the underperforming business to private equity firms Brigade Capital and Macellum Capital for approximately $1 billion. The deal is expected to yield $800 million in net proceeds and generate a $375 million cash tax shield—resources the company plans to reinvest into its core Dollar Tree brand.
Alongside the sale, Dollar Tree replenished its share buyback authorization to $2.5 billion, signaling an aggressive stance on shareholder returns. The move reflects management’s dual focus on growth acceleration and capital efficiency.
Analysts have taken notice. Bernstein SocGen raised their price target to $86, citing robust sales, though they warned that tariff-related costs could pressure future earnings. UBS reaffirmed its Buy rating, noting investor confusion around recent guidance, particularly regarding cost headwinds.
In Q1, Dollar Tree delivered above-consensus results with a 5.4% jump in comparable sales and adjusted EPS of $1.26. Management has also raised its full-year gross margin outlook, anticipating significant improvement in the second half of 2025.
As economic uncertainty persists, Dollar Tree’s ability to hit a new stock price high underscores its resilience in the value retail segment and its momentum heading into the back half of the year.
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