Why Is Dollar Tree Stock Rising Today?

Dollar Tree (DLTR) shares jumped over 8% in premarket trading on Wednesday after the company outlined its three-year outlook beginning fiscal 2026 to fiscal 2028.

The firm said it expects 12% to 15% compounded annual growth rate in earnings per share (EPS) for fiscal years 2026 to 2028. Dollar Tree stated that this was based on an underlying annual EPS growth of 8% to 10%, driven by the absence of recent cost items tied to tariff mitigation, multi-price store conversions, lost distribution capacity, and the sale of Family Dollar.

EPS is expected to grow by a high-teens percentage in fiscal year 2026 due to the timing of certain cost benefits, the company said. Dollar Tree, like other retailers, is also faced with higher costs related to U.S. President Donald Trump’s tariffs on global trading partners.

Dollar Tree is undergoing a turnaround following the sale of its Family Dollar business, and it is expanding its Dollar Tree brand through new locations and the conversion of existing stores.

Retail sentiment on Dollar Tree jumped to ‘bullish’ from ‘bearish’ territory compared to a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. The retail user count on the stock also increased by 460% in the last 24 hours on Stocktwits.

The company said it has seen comparable same-store sales growth of 3.8% quarter-to-date and was reaffirming its third-quarter and fiscal 2025 outlook. Dollar Tree also noted that it continues to expect fiscal 2025 comparable store net sales growth in the range of 4% to 6%.

It maintained its full-year diluted EPS from continuing operations outlook range to be between $5.32 and $5.72. Shares of Dollar Tree have gained nearly 28% this year and over 40% in the last 12 months.

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