Dollar Tree (DLTR) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 consolidated net sales rose 3.5% year-over-year to $7.56B, with same-store sales up 1.8% enterprise-wide, driven by higher traffic at both Dollar Tree and Family Dollar.

• Adjusted diluted EPS was $1.12, up 15.5% year-over-year; net income was $233.3M, with adjusted net income at $240.6M.

• Family Dollar's strategic alternatives review is ongoing, with significant store closures and a CFO transition announced.

• 249 new Dollar Tree and 6 new Family Dollar stores opened in Q3; 158 former 99 Cents Only Stores reopened as Dollar Trees.

• Gross profit margin improved by 120 bps to 30.9% due to lower freight costs and improved shrink.

Financial highlights

• Total revenue for Q3 was $7.57B, up from $7.31B year-over-year; nine-month revenue reached $22.6B.

• Adjusted operating income was $343M, up 13.8%; adjusted operating margin improved 40 bps to 4.5%.

• Dollar Tree comp sales up 1.8%, Family Dollar comp sales up 1.9% year-over-year.

• Gross profit for the quarter was $2.34B (30.9% margin), up from $2.17B (29.7% margin) year-over-year.

• Free cash flow improved by $395M year-over-year; $698M in cash and equivalents at quarter-end.

Outlook and guidance

• Q4 FY2024 net sales expected between $8.1B and $8.3B; adjusted diluted EPS guidance of $2.10–$2.30.

• Full-year FY2024 net sales outlook is $30.7B–$30.9B; adjusted diluted EPS expected at $5.31–$5.51.

• Comparable store net sales growth for the year projected in the low single digits for both segments.

• Family Dollar full-year net sales expected to decline 3.5%–4.5% year-over-year due to store closures and an extra week in 2023.

• Full-year gross margin expected at 36.0% for Dollar Tree and 25.0% for Family Dollar.