Dollar Tree (NASDAQ:DLTR) shares gained 2.6% in pre-market trading on Wednesday after the discount retailer reaffirmed its short-term guidance and set out a bullish three-year earnings growth plan ahead of its 2025 Investor Day in New York.
The company said it expects earnings per share to grow at a compounded annual rate of 12% to 15% between fiscal 2026 and 2028. This outlook is supported by an underlying growth algorithm of 8% to 10%, along with additional benefits from targeted cost reductions.
For fiscal 2026 specifically, EPS is expected to increase in the high teens percentage range, driven by one-time savings linked to tariff mitigation, multi-price store conversions, and the planned sale of Family Dollar.
Chief Executive Officer Mike Creedon commented: “We are excited about this new chapter in Dollar Tree’s history. We are enhancing our value and customer focus as a multi-price, technology-enabled retailer that can compete and win in today’s market.” He added that the company’s “refreshed leadership team is energized, aligned, and committed.”
Dollar Tree reaffirmed its third-quarter and full-year 2025 outlook, including quarter-to-date comparable-store sales growth of 3.8%. The company also disclosed it has repurchased 2.8 million shares for $271 million so far this quarter.
It noted that current EPS guidance for the third quarter and the full year does not yet reflect the positive impact of these share buybacks.
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