Dollar Tree is projecting robust growth over the next three years as the retailer embarks on what it calls a new era of transformation and focus.
Speaking at its annual Investor Day in New York City on October 15, the discount chain outlined a three-year outlooktargeting a 12% to 15% compounded annual growth rate (CAGR) in earnings per share (EPS) for fiscal years 2026 to 2028.
The company said the projection is based on underlying annual EPS growth of 8% to 10%, boosted by the absence of recent cost headwinds such as tariff mitigation, multi-price store conversions, lost distribution capacity, and the sale of Family Dollar.
Dollar Tree also reaffirmed its third-quarter and fiscal 2025 guidance and shared positive performance updates.
So far in the third quarter, comparable store sales are up 3.8%, and the company has repurchased 2.8 million shares valued at $271 million.
In July, Dollar Tree completed the $1.01 billion sale of its underperforming Family Dollar banner to private equity firms Brigade Capital Management and Macellum Capital Management, marking a major strategic shift to refocus on the core Dollar Tree brand.
“We are excited about this new chapter in Dollar Tree’s history,” said CEO Mike Creedon. “Our ability to offer merchandise at a range of prices frees us to optimize our assortment. Our refreshed leadership team is energized, aligned, and committed.
“Our strategy is clear, and our ambition is bold — to build Dollar Tree for the next 40 years and beyond as a company that wins with customers, empowers associates, strengthens communities, and delivers exceptional long-term returns for shareholders.”
Dollar Tree currently operates more than 9,000 stores and 18 distribution centers across 48 states and five Canadian provinces, under the Dollar Tree and Dollar Tree Canada banners.
Click here to sign up to Retail Gazette‘s free daily email newsletter
