Dollar Tree Inc (0IC8.L) Q3 2025 Earnings Report

Dollar Tree, Inc. delivered a solid third quarter (Q3) of fiscal 2025, marked by a 4.2% comp sales uptick driven by higher average ticket and a sharp shift toward a more profitable multi-price mix. Reported net sales reached $4.751 billion, with gross margin expanding 40 basis points to 35.8% and adjusted EPS of $1.21, topping prior guidance. Management highlighted the ongoing effectiveness of the multi-price strategy, Halloween season performance, and strong store and supply-chain execution as key drivers of profitability and a strengthened value proposition across a broader income spectrum. Balance-sheet discipline remained evident, with inventory down 5% YoY, $319 million of operating cash flow, capital expenditures of $376 million, and ongoing share repurchases, underscoring a capital-allocation framework focused on growth, balance-sheet strength, and returning capital to shareholders.

Looking ahead, Dollar Tree reaffirmed a robust fourth-quarter outlook (Q4): comps of 4-6%, net sales of $5.4–$5.5 billion, and adjusted EPS of $2.40–$2.60. For the full year, the company nudged its outlook to 5–5.5% comp and $5.60–$5.80 in adjusted EPS, with capital-expenditure guidance of $1.2–$1.3 billion and a plan to continue meaningful share repurchases. Management also reiterated a longer-term EPS-growth framework (12–15% adjusted EPS CAGR through 2028, with 8–10% underlying growth and discrete items contributing in 2026 and beyond). The QQ3 print reinforces Dollar Tree’s transition to “one brand, one focus” and its strategy to deepen the value, convenience, and discovery proposition across a broader tier of shoppers, including higher-income segments.