Dollar Tree(US:DLTR)2025-12-03 11:30Financial Performance - Dollar Tree reported a 9.4% increase in net sales to $4.7 billion for Q3 Fiscal 2025, with same-store net sales growth of 4.2% driven by a 4.5% increase in average ticket[5][9]. - Diluted earnings per share (EPS) from continuing operations was $1.20, reflecting an 11.1% increase year-over-year, while adjusted diluted EPS was $1.21, up 12.0%[5][13]. - The gross profit increased by 10.8% to $1.7 billion, with a gross margin of 35.8%, up 40 basis points from the previous year[5][9]. - Operating income for Q3 increased by 3.8% to $343 million, with an operating margin of 7.2%, down 40 basis points year-over-year[5][12]. - Income from continuing operations for the 39 weeks ended November 1, 2025, was $713.6 million, up from $642.3 million, reflecting a growth of 11.1%[40]. - The company reported a net income of $776.4 million for the 39 weeks ended November 1, 2025, compared to $665.8 million for the same period last year, indicating a growth of 16.6%[40]. - For the 39 weeks ended November 1, 2025, Dollar Tree's operating income was $1,344.7 million, slightly up from $1,329.5 million for the same period last year, representing a 1.1% increase[57]. - The diluted earnings per share for continuing operations (GAAP) was $1.20 for the 13 weeks ended November 1, 2025, compared to $1.08 for the same period last year, marking an increase of 11.1%[64]. Sales and Revenue Outlook - For the fourth quarter of Fiscal 2025, the company expects net sales in the range of $5.4 billion to $5.5 billion, with comparable store net sales growth of 4.0% to 6.0%[22]. - The full-year Fiscal 2025 net sales outlook is updated to $19.35 billion to $19.45 billion, with comparable store net sales growth projected at 5.0% to 5.5%[20][21]. - Total revenue for the 39 weeks ended November 1, 2025, reached $13,961.1 million, compared to $12,578.7 million for the prior year, marking a year-over-year increase of 11.0%[33]. - Total net sales for Dollar Tree reached $4,746.3 million for the 13 weeks ended November 1, 2025, a 9.4% increase from $4,338.0 million for the same period in 2024[43]. Store Operations and Expansion - The company opened 106 new stores and converted approximately 646 stores to the Dollar Tree 3.0 multi-price format during the year[5][6]. - The company opened 106 new stores during the 13 weeks ended November 1, 2025, bringing the total store count to 9,269, a net increase of 401 stores year-over-year[46]. - Selling square footage increased to 82.5 million square feet, reflecting a growth rate of 5.4% compared to the same period in 2024[46]. Cash Flow and Capital Expenditures - The company generated $958.5 million in net cash from operating activities and $88.2 million in free cash flow from continuing operations year-to-date[6]. - Net cash provided by operating activities of continuing operations for the 39 weeks ended November 1, 2025, was $958.5 million, down from $1,335.8 million in the prior year[40]. - Free cash flow from continuing operations for the 39 weeks ended November 1, 2025, was $88.2 million, a decline from $330.1 million in the same period of 2024, indicating a decrease of 73.3%[66]. - Capital expenditures of continuing operations for the 13 weeks ended November 1, 2025, were $376.4 million, up from $341.4 million in the same period of 2024, reflecting an increase of 10.8%[66]. Expenses and Profitability - For the 13 weeks ended November 1, 2025, Dollar Tree reported GAAP selling, general and administrative expenses of $1,245.5 million, up from $1,069.0 million for the same period last year, reflecting a 16.5% increase[57]. - The adjusted selling, general and administrative expense rate for the Dollar Tree segment was 26.2% for the 13 weeks ended November 1, 2025, compared to 24.6% for the same period last year, showing an increase of 1.6 percentage points[57]. - The adjusted operating income margin for continuing operations was 7.3% for the 13 weeks ended November 1, 2025, compared to 7.6% for the same period last year, indicating a slight decline[61]. Tax and Liabilities - The effective tax rate for the 39 weeks ended November 1, 2025, was 25.1%, compared to 23.8% for the same period last year[33]. - Total liabilities as of November 1, 2025, were $10,191.6 million, a decrease from $14,666.6 million as of February 1, 2025[36].