Dollar Tree (DLTR) Q4 2025 earnings summary

Executive summary

• Announced agreement to sell Family Dollar to Brigade Macellum for just over $1 billion, with Dollar Tree receiving $800 million in cash proceeds and $350 million in tax benefits; Family Dollar results now classified as discontinued operations.

• Dollar Tree Q4 same-store sales rose 2.0% year-over-year, driven by 0.7% higher traffic and 1.3% higher ticket; ended 2024 with 2,900 3.0 multi-price format stores.

• Q4 adjusted diluted EPS was $2.29 ($2.11 from continuing, $0.18 from discontinued operations); full-year adjusted EPS from continuing operations was $5.10.

• Opened 33 new Dollar Tree stores in Q4, totaling 525 for the year, including 162 former 99 Cents Only Stores.

• Strategic separation enables each banner to focus on unique needs and clearer market valuation.

Financial highlights

• Q4 net sales from continuing operations increased 0.7% to $5.0 billion; discontinued operations (Family Dollar) net sales decreased 11.2% to $3.3 billion.

• Consolidated net sales were $8.3 billion in Q4; full-year net sales from continuing operations rose 4.7% to $17.6 billion.

• Q4 adjusted operating income from continuing operations declined 15% to $628 million; adjusted operating margin down 230 basis points to 12.6%.

• Free cash flow for the year was $893 million; ended year with $1.3 billion in cash and no borrowings under revolver.

• Repurchased 3.3 million shares for $404 million in 2024; $952 million remains under repurchase program.

Outlook and guidance

• Fiscal 2025 net sales expected between $18.5 billion and $19.1 billion, with comparable store sales growth of 3%–5%.

• Adjusted diluted EPS from continuing operations projected at $5.00–$5.50, including a $0.30–$0.35 negative impact from partial-year Family Dollar TSA reimbursement.

• Q1 2025 net sales guidance: $4.5–$4.6 billion; adjusted diluted EPS: $1.10–$1.25.

• Capital expenditures planned at $1.2–$1.3 billion, including 400 new store openings.

• Modest improvement in gross margin expected, assuming successful tariff mitigation; additional tariffs not yet reflected in outlook.