Dollar Tree shares rise as retailer outlines three-year earnings growth plan

Investing.com -- Dollar Tree shares rose 2.6% premarket on Wednesday after the retailer reaffirmed its near-term outlook and projected a strong three-year earnings growth trajectory in a release ahead of its 2025 Investor Day event 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, supported by an underlying long-term growth algorithm of 8% to 10% plus the benefit of discrete cost reductions.

Fiscal 2026 EPS is expected to grow in the high teens percentage range, boosted by one-time cost savings related to tariff mitigation, multi-price store conversions, and the 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.”

The company reaffirmed its third-quarter and fiscal 2025 outlook, including comparable-store sales growth of 3.8% quarter-to-date, and disclosed that it repurchased 2.8 million shares for $271 million so far in the quarter.

Dollar Tree said its third-quarter and full-year EPS guidance does not yet reflect the benefit of these share repurchases.

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