With a market cap of $17.4 billion, Dollar Tree, Inc. (DLTR) operates discount variety retail stores under the Dollar Tree and Dollar Tree Canada brands across the United States and Canada. The company offers a wide range of consumables, seasonal goods, and general merchandise through its physical locations and bulk e-commerce platform, DollarTree.com, supported by a nationwide logistics network.
The Chesapeake, Virginia-based company is expected to announce its fiscal Q1 2025 earnings results on Wednesday, June 4. Ahead of this event, analysts expect the company to report an adjusted EPS of $1.17, down 18.2% from $1.43 in the year-ago quarter. It has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions.
For fiscal 2025, analysts expect the discount store chain to report an adjusted EPS of $5.19, up 1.8% from $5.10 in fiscal 2024. In addition, adjusted EPS is anticipated to grow 14.5% year-over-year to $5.94 in fiscal 2026.
Shares of DLTR have declined 31.9% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 8.7% gain and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.1% return over the same period.
Despite reporting weaker-than-expected Q4 2024 adjusted EPS of $2.11 and revenue of $5 billion, shares of DLTR rose 3.1% on Mar. 26 largely due to investor optimism surrounding the announced sale of the underperforming Family Dollar segment, which marks a strategic refocus on the more profitable Dollar Tree brand. The $1 billion sale is expected to yield approximately $804 million in net proceeds and generate around $350 million in tax benefits.
Investors were also encouraged by Dollar Tree’s reaffirmed solid full-year 2025 outlook with net sales guidance of $18.5 billion - $19.1 billion and adjusted EPS of $5 - $5.50.
Analysts' consensus view on Dollar Tree’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, seven recommend "Strong Buy," 15 suggest "Hold," and one gives "Moderate Sell." As of writing, DLTR is trading below the average analyst price target of $81.32.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
