Dollar Tree is the most recent discount retailer to note a surge, with shares of the chain rising nearly 4% on Wednesday, following impressive earnings that exceeded expectations and subsequently increased its forecast. For the third quarter, Dollar Tree reported an adjusted earnings per share of $1.21 and a 9.4% year-over-year revenue increase, reaching $4.75 billion. These figures surpassed forecasts compiled by Visible Alpha.
CEO Michael Creedon Jr. attributed the increase to the company's strong value proposition and the "value-seeking behavior" of consumers. Continued strength was reported from discount retailers such as TJ Maxx's parent company, TJX, and Ross Stores, demonstrating the impact of value-seeking behaviour this holiday season. Same-store sales rose by 4.2%, and per ticket spending increased by 4.5%. Creedon stated that 3 million more households shopped at Dollar Tree in comparison to last year during the third quarter, with over half of this influx coming from higher-income households earning $100,000 annually.
The outlook for Dollar Tree has improved, with predictions for the full year's adjusted earnings per share now situated between $5.60 and $5.80, having previously stood between $5.32 and $5.72. The sales forecast has been adjusted to between $19.35 billion and $19.45 billion, from the previous estimations of $19.30 billion and $19.50 billion. Same-store sales growth is now estimated to reach 5% to 5.5%, upped from 4% to 6%. Due to these gains, Dollar Tree shares have gained half their value in 2025.