This Discount Retailer Is the Latest to Get a Lift From Shoppers Searching for Deals

Core Insights - Dollar Tree reported quarterly earnings that surpassed analysts' expectations, leading to an increase in its outlook [1] - The company's shares rose nearly 4% following the earnings report, reflecting positive market sentiment [1] Financial Performance - Adjusted earnings per share (EPS) reached $1.21, with revenue increasing by 9.4% year-over-year to $4.75 billion in the third quarter, both exceeding analysts' estimates [1] - Same-store sales grew by 4.2%, and the average spending per shopper increased by 4.5% [1] Consumer Behavior - CEO Michael Creedon Jr. attributed the strong results to the company's value proposition and the "value-seeking behavior" of consumers in a budget-constrained environment [1] - An additional 3 million households shopped at Dollar Tree in the third quarter compared to the previous year, with over half of these new customers coming from households earning more than $100,000 annually [1] Future Outlook - Dollar Tree revised its full-year adjusted EPS forecast to a range of $5.60 to $5.80, up from the previous estimate of $5.32 to $5.72 [1] - The sales forecast was narrowed to $19.35 billion to $19.45 billion, and same-store sales growth was adjusted to 5% to 5.5% from the earlier range of 4% to 6% [1] - Following the recent gains, Dollar Tree's shares have increased by half their value in 2025 [1]