Dollar Tree, Inc. Reports Results for the Third Quarter Fiscal 2025

CHESAPEAKE, Va.--( BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR) today reported financial results for its third quarter ended November 1, 2025.

“Our multi-price strategy drove strong momentum across our business in the third quarter and helped deliver an all-time record Halloween season. Today’s Dollar Tree is a preferred destination for a wide range of shoppers – whether they rely on us for everyday essentials, appreciate a fast and easy trip, or enjoy the excitement of discovering something unexpected,” said Mike Creedon, Chief Executive Officer. “With 85 percent of our assortment priced at two dollar or less, we continue to deliver exceptional value, while our multi-price assortment allows us to offer even more high-quality products and great gift options for the holidays. I’m incredibly proud of our team for delivering such a standout performance this quarter. And as we head into peak holiday season, we’re ready to bring even more value, convenience, and discovery to our growing base of loyal customers.”

Additional Business Highlights

Third Quarter 2025 Key Operating Results (unaudited)

(from continuing operations unless otherwise noted)

(Compared to same period fiscal 2024)

Fiscal 2025

Change

Net Sales

$4.7B

9.4%

Same-Store Net Sales Growth – Dollar Tree

4.2%

Operating Income

$343M

3.8%

Diluted EPS

$1.20

11.1%

Adjusted Operating Income 1

$345M

4.1%

Adjusted Diluted EPS

$1.21

12.0%

Adjustments for the third quarter of 2025 are strategic review costs. See “Reconciliation of Non-GAAP Financial Measures” below for detailed schedules of these charges.

Third Quarter Results

Results for the third quarter ended November 1, 2025, are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of the Dollar Tree segment and corporate, support and other.

Also, unless otherwise noted, all comparisons are to the prior year’s third quarter, ended November 2, 2024, which has also been adjusted to reflect the Family Dollar segment as discontinued operations.

Net sales increased 9.4% to $4.7 billion. Same-store net sales increased by 4.2%, driven by a 4.5% increase in average ticket and a 0.3% decline in traffic.

Gross profit increased 10.8% to $1.7 billion and gross margin increased 40 basis points to 35.8%. The expansion in gross margin was primarily driven by improved mark-on from pricing initiatives, lower domestic and import freight costs, favorable sales mix, partially offset by higher tariff costs, markdowns, and shrink.

Selling, general and administrative expenses increased 140 basis points to 29.2% of total revenue. The increase was driven primarily by higher store payroll in support of pricing initiatives and from wage increases, general liability claims costs, and depreciation from store investments, partially offset by lower stock compensation, corporate payroll, and sales leverage.

On an adjusted basis, which does not include strategic review costs, selling, general and administrative costs increased 130 basis points to 29.1% of total revenue.

Transition services agreement income, net was $23.8 million for services provided between Dollar Tree and Family Dollar following the sale.

Operating income increased 3.8% to $343.3 million and operating margin decreased 40 basis points to 7.2%. Adjusted operating income increased 4.1% to $345.3 million and adjusted operating margin decreased 30 basis points to 7.3%.

The Company’s effective tax rate was 23.9% compared to 23.2%.

Income from continuing operations was $244.6 million and diluted earnings per share from continuing operations was $1.20. On an adjusted basis, which does not include strategic review costs, income from continuing operations was $246.1 million and diluted EPS was $1.21.

The Company repurchased 4.1 million shares for $399.0 million, including applicable excise tax. Subsequent to quarter end, it purchased an additional 1.7 million shares for $176 million.

As of November 1, 2025, the Company had $2.0 billion remaining under the $2.5 billion repurchase authorization, $594.8 million of cash and cash equivalents, $620.0 million of commercial paper notes outstanding, and no borrowings under its credit facilities.

Year-to-Date Results

Results for the 39 weeks ended November 1, 2025, are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of our Dollar Tree segment and corporate, support and other.

Also, unless otherwise noted, all comparisons are to the prior 39 weeks ended November 2, 2024, which also reflect the Family Dollar segment as discontinued operations.

Net sales increased 11.0% to $13.9 billion. Dollar Tree’s same-store sales increased 5.4%, driven by a 1.8% increase in traffic and a 3.6% increase in average ticket.

Gross profit increased 11.8% to $4.9 billion and gross margin increased by 30 basis points to 35.3%.

Selling, general and administrative expenses were 28.7% of total revenue, compared to 27.7%. On a non-GAAP basis, selling, general and administrative expenses were 28.6% of total revenue, compared to 27.6%.

Operating income increased 3.2% to $958.4 million and operating income margin decreased 50 basis points to 6.9%. Adjusted operating income increased 3.7% to $969.1 million and adjusted operating income margin decreased 50 basis points to 6.9%.

The Company’s effective tax rate was 25.1% compared to 23.8%.

Income from continuing operations was $713.6 million and diluted earnings per share from continuing operations was $3.42. Adjusted income from continuing operations was $675.1 million and adjusted diluted earnings per share from continuing operations was $3.24.

The Company repurchased 15.0 million shares for $1.3 billion, including applicable excise tax. Subsequent to quarter end, we purchased an additional 1.7 million shares for $176 million.

Fiscal 2025 Outlook

Our full-year fiscal 2025 outlook is presented on a continuing operations basis, reflecting the operations of our Dollar Tree segment, which includes corporate, support and other. A quarterly and full-year reclassification of our 2024 results into continuing, discontinued, and consolidated operations was included as supplemental schedules in the Company’s fourth quarter fiscal 2024 earnings press release, published on March 26, 2025.

Additionally, our outlook assumes that the level of tariffs in place today, December 3, 2025, remains in effect for the balance of the fiscal year. It further assumes that we will be able to mitigate most of the incremental margin pressure from higher tariffs and other input costs.

The Company is updating its full-year fiscal 2025 net sales from continuing operations outlook to be in the range of $19.35 billion to $19.45 billion, based on an updated comparable store net sales growth range of 5.0% to 5.5%.

The Company is updating its prior adjusted diluted EPS from continuing operations outlook range to $5.60 to $5.80 to reflect the current operating environment and year-to-date share repurchases. Additional share repurchases are not included in the updated outlook.

Fourth Quarter 2025 Outlook

For the fourth quarter fiscal 2025, the Company expects its net sales from continuing operations to be in the range of $5.4 billion to $5.5 billion, based on comparable store net sales growth of 4.0% to 6.0%. Additionally, it expects adjusted diluted EPS from continuing operations to be in the range of $2.40 to $2.60.

Conference Call Information

On Wednesday, December 3, 2025, the Company will host a conference call to discuss its earnings results at 8:00 a.m. Eastern Time. The telephone number for the call is (877) 407-3943 or (201) 689-8855. A recorded version of the call will be available for seven days after the call and may be accessed by dialing (877) 660-6853 or (201) 612-7415. The access code is 13756945. A webcast of the call is also accessible through the Investor Relations portion of the Company’s website.

Supplemental financial information for the third quarter is available on the Investor Relations portion of the Company’s website, at https://corporate.dollartree.com/investors.

Dollar Tree, Inc., headquartered in Chesapeake, VA, is one of North America’s largest and most loved value retailers, known for delivering great value, convenience, and a “thrill-of-the-hunt” discovery shopping experience. With a team of approximately 150,000 associates, Dollar Tree operates more than 9,200 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The Company is committed to being a responsible steward of its business – supporting its people, serving its communities, and creating lasting value. To learn more about the Company, visit www.DollarTree.com.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). From time to time, the Company supplements the reporting of its financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP financial measures we have disclosed include adjusted selling, general and administrative expenses inclusive and exclusive of TSA income; adjusted selling, general and administrative expense rate; adjusted operating income (loss); adjusted operating income (loss) margin; adjusted income from continuing operations; adjusted diluted earnings per share; and adjusted effective tax rate, in each case with respect to our continuing operations; and free cash flow.

Reconciliations of the non-GAAP financial measures to the corresponding amounts prepared in accordance with GAAP appears in the tables under the heading “Reconciliation of Non-GAAP Financial Measures” below. These tables provide additional information regarding the adjusted measures.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “believe”, “anticipate”, “expect”, “intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”, “should”, “predict”, “possible”, “potential”, “continue”, “strategy”, and similar expressions. For example, our forward-looking statements include statements relating to our business and financial outlook for fiscal 2025, including without limitation our expectations regarding net sales, comparable store sales and adjusted diluted earnings per share for the fourth fiscal quarter and full fiscal year 2025, and various factors that are expected to impact our quarterly and annual results of operations for fiscal 2025; the direct and indirect impacts of current and potential tariffs and other trade-related measures and our plans to mitigate those impacts; our plans and expectations regarding our business, including the impact of various initiatives, investments, and reviews on the company’s performance and prospects for long-term growth; and our other plans, objectives, expectations (financial and otherwise) and intentions. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed March 26, 2025, our Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

DLTR-E

DOLLAR TREE, INC.

FINANCIAL TABLES

T-1: Condensed Consolidated Income Statements

T-2: Condensed Consolidated Balance Sheets

T-3: Condensed Consolidated Statements of Cash Flows

T-4: Segment Information

T-5: Dollar Tree Segment Information

T-6: Reconciliation of Non-GAAP Financial Measures

T-7: Reconciliation of Non-GAAP Financial Measures – Continuing Operations

T-7a: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)

T-7b: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)

T-8: Reconciliation of Non-GAAP Financial Measures – Free Cash Flow

4,746.3

4,338.0

13,949.6

12,569.1

4.7

3.2

11.5

9.6

4,751.0

4,341.2

13,961.1

12,578.7

3,045.8

2,803.9

9,029.5

8,167.2

1,385.7

1,206.6

4,005.0

3,483.1

23.8

31.8

343.3

330.7

958.4

928.4

21.9

28.3

67.4

84.9

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321.3

302.3

953.0

843.3

76.7

70.0

239.4

201.0

244.6

232.3

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62.8

23.5

244.6

233.3

776.4

665.8

1.20

1.09

3.43

2.97

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0.30

0.11

1.20

1.09

3.73

3.08

203.3

215.0

208.1

215.9

1.20

1.08

3.42

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0.30

0.11

1.20

1.08

3.72

3.08

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215.2

208.5

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27.8

28.7

27.7

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