Investing.com — Dollar Tree, Inc. shares jumped 5.7% Wednesday after the discount retailer reported third-quarter earnings and revenue that exceeded analyst expectations, driven by strong same-store sales growth across both its Dollar Tree (NASDAQ:) and Family Dollar brands.
The company posted adjusted earnings per share of $1.12, beating the consensus estimate of $1.07. Revenue came in at $7.56 billion, surpassing analysts’ projections of $7.45 billion. Same-store sales increased 1.8% across the enterprise, with Dollar Tree stores up 1.8% and Family Dollar up 1.9%.
“Our Dollar Tree and Family Dollar merchandising efforts produced tangible results, and our third quarter sales came in at the high-end of our expected range,” said Mike Creedon, Interim Chief Executive Officer.
For the fourth quarter, Dollar Tree forecasts adjusted EPS of $2.10 to $2.30 on revenue between $8.1 billion and $8.3 billion. The midpoint of the EPS guidance range is slightly below the $2.23 analyst consensus.
For the full-year fiscal 2024, the company expects adjusted EPS of $5.31 to $5.51 on revenue of $30.7 billion to $30.9 billion. Both ranges encompass current analyst estimates.
Dollar Tree also announced that CFO Jeff Davis will be stepping down, with an external search underway for his replacement. The company said its strategic review of the Family Dollar business remains on track, though no timeline was provided for its completion.
