Dollar Tree Stock Hits 3-Month High After Raising 2025 Earnings Forecast

• Dollar Tree also raised its sales expectations to $19.35 billion to $19.45 billion, with comparable sales growth of 5% to 5.5%.
• The company said its same-store net sales increased by 4.2% in the fiscal third quarter, driven by a 4.5% increase in average ticket.
• During the post-earnings conference call, management remained upbeat about holiday-season demand.

Dollar Tree (DLTR) stock gained over 3% on Wednesday, to hit its highest in three months, after raising its fiscal 2025 sales forecast.

The company projected fiscal 2025 earnings of $5.60 to $5.80 per share, compared with a prior forecast of $5.32 to $5.72 per share. Analysts expect it to post earnings of $5.51 per share, as per Fiscal.ai data.

Dollar Tree also raised its sales expectations to $19.35 billion to $19.45 billion, with comparable sales growth of 5% to 5.5%. Earlier, it projected net sales between $19.3 billion and $19.5 billion and a comparable sales increase of 4% to 6%.

Q3 Earnings Get Halloween Boost

The company said its same-store net sales increased by 4.2% in the fiscal third quarter, driven by a 4.5% increase in average ticket (total spend per customer) and a 0.3% decline in traffic. This is a widely followed metric for retailers because it accounts for new store openings and closures.

“Average ticket growth was supported by increased multi-price penetration, particularly across our Halloween assortment and the pricing actions we began rolling out last quarter,” said Dollar Tree Chief Financial Officer Stewart Glendinning.

The firm’s net sales increased 9.4% to $4.7 billion, in line with Wall Street estimates. Its adjusted earnings of $1.21 per share also topped the $1.08-per-share estimate.

Holiday Season

During the post-earnings conference call, management remained upbeat about holiday-season demand, the most crucial period for retailers. On Wednesday, Macy’s CEO warned that customers remained cautious about spending.

“Halloween was great, and our Thanksgiving and Christmas assortments are resonating with our customers as we remain focused on consistently delivering unbeatable ‘wow value’ and the ‘thrill of the hunt’ experience,” said Chief Operating Officer Michael Creedon.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits about Dollar Tree was in the ‘extremely bullish’ territory.

Dollar Tree stock has gained nearly 48% this year.

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