Dollar Tree(US:DLTR) ZACKS·2026-03-16 19:26Core Insights - Dollar Tree, Inc. (DLTR) reported strong fourth-quarter fiscal 2025 results, with adjusted earnings per share (EPS) of $2.56, a 21.3% increase year over year, surpassing the Zacks Consensus Estimate of $2.53 [1][10] - The company achieved its 20th consecutive year of positive same-store sales, with a 5% year-over-year growth in same-store sales [1][10] Financial Performance - Net sales rose 9% year over year to $5.45 billion, slightly below the Zacks Consensus Estimate of $5.47 billion [3][10] - Gross profit increased 13.3% year over year to $2.1 billion, with a gross margin expansion of 150 basis points to 39.1% [4] - Selling, general and administrative (SG&A) costs were 26.9% of sales, down 10 basis points from the previous year [5] - Adjusted operating income grew 10.7% year over year to $695 million, with an operating margin increase of 20 basis points to 12.8% [6] Financial Health - As of January 31, 2025, Dollar Tree had cash and cash equivalents of $717.8 million, no borrowings under credit facilities, and net merchandise inventories of $2.5 billion, down 7.4% year over year [7] - The company repurchased 2.2 million shares for $232 million, with $1.8 billion remaining under the $2.5 billion repurchase authorization [8] Store Expansion - In fiscal 2025, Dollar Tree opened 402 new stores and converted or added nearly 2,400 stores to the Dollar Tree 3.0 multi-price format, ending the year with approximately 5,300 multi-price stores [9] - As of January 31, 2026, Dollar Tree operated a total of 9,282 stores [9] Future Guidance - For fiscal year 2026, Dollar Tree projects net sales between $20.5 billion and $20.7 billion, with same-store sales growth of 3-4% [11] - The company anticipates adjusted EPS from continuing operations in the range of $6.50 to $6.90 [11] - For the first quarter of fiscal 2026, net sales are projected to be between $4.9 billion and $5 billion, with adjusted EPS expected to be in the range of $1.45 to $1.60 [12]