Dollar Tree, Inc. reported fiscal third‑quarter 2025 results that surpassed expectations, with net sales of $4.75 billion—up 9.4 % year‑over‑year—and diluted earnings per share of $1.21, beating the consensus estimate of $1.09. The company’s multi‑price 3.0 format helped lift comparable‑store sales by 4.2 %, driven by a 4.5 % increase in average ticket and a modest 0.3 % decline in traffic.
Gross profit rose to $1.70 billion, and gross margin expanded to 35.8 %, a 40‑basis‑point gain. The improvement was largely attributable to higher mark‑on from the multi‑price strategy, a favorable sales mix that shifted toward higher‑margin discretionary items, and lower freight costs that offset the modest traffic decline.
Comparable‑store sales growth of 4.2 % was supported by the multi‑price 3.0 format, which increased the proportion of items priced above $2 and attracted higher‑income shoppers. The 4.5 % rise in average ticket—largely driven by holiday‑season demand—helped offset the 0.3 % traffic dip, keeping same‑store sales momentum strong.
Management raised its full‑year fiscal 2025 adjusted EPS outlook to $5.60‑$5.80 from the prior $5.32‑$5.72 range and lifted net‑sales guidance to $19.35‑$19.45 billion. For the fourth quarter, the company now expects net sales of $5.40‑$5.50 billion and adjusted diluted EPS of $2.40‑$2.60, reflecting confidence in continued demand and the effectiveness of its pricing and cost‑control initiatives.
CEO Mike Creedon highlighted the success of the multi‑price strategy, noting that 85 % of the assortment remains priced at $2 or less while the new format expands higher‑quality, higher‑price options. He added that the company attracted 3 million more households in Q3, with 60 % of the incremental shoppers coming from high‑income households. CFO Stewart Glendinning emphasized that the average‑ticket growth was driven by increased penetration of the multi‑price assortment, particularly in the Halloween and holiday categories.
Investors reacted positively to the results, citing the earnings beat, the raised guidance, and the margin expansion as key drivers of confidence in Dollar Tree’s continued execution and strategic positioning.
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