By Connor Hart

Dollar Tree raised its annual outlook after sales soared in its latest quarter thanks to rising demand for low-cost goods.

The discount-store operator said Wednesday it now expects sales of $19.3 billion to $19.5 billion in its fiscal 2025, with comparable sales anticipated rising 4% to 6%. It had previously guided for sales of $18.5 million to $19.1 million, with same-store sales seen up 3% to 5%.

Analysts polled by FactSet are looking for sales of $19.17 billion, and for comparable sales--or those from stores and digital channels in operation for at least 12 months--to rise 4.7%.

Adjusted earnings are projected to come in between $5.32 a share and $5.72 a share, up from a prior view of $5.15 a share to $5.65 a share. Wall Street forecast adjusted earnings of $5.52 a share.

The new outlook came after Dollar Tree experienced what Chief Executive Mike Creedon called strong sales growth, margin outperformance and market-share gains in the recent quarter.

The Chesapeake, Va., company posted a profit of $188.4 million, or 91 cents a share, for its fiscal second quarter ended Aug. 2. That compares with a profit of $132.4 million, or 62 cents a share, in last year's comparable period.

Adjusted per-share earnings of 77 cents topped analyst expectations for 42 cents.

Sales jumped 12% to $4.57 billion, ahead of the $4.48 billion Wall Street modeled. Comparable sales climbed 6.5%, also ahead of analyst views, driven by a 3% increase in traffic and a 3.4% increase in average ticket.

"With the Family Dollar sale complete, Dollar Tree is now a fully focused business and every ounce of our leadership attention, capital investment and operating resources is now directed toward strengthening the Dollar Tree brand," Creedon said.

Family Dollar's results were presented in Dollar Tree's financials as discontinued operations.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

Dollar Tree had previously guided for fiscal-year sales of $18.5 billion to $19.1 billion. "Dollar Tree Boosts Outlook as 2Q Sales Jump," at 6:57 a.m. ET, and subsequent updates incorrectly said it guided for fiscal-year sales of $18.5 million to $19.1 million.

(END) Dow Jones Newswires

September 03, 2025 17:43 ET (21:43 GMT)

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