Shares of Dollar Tree rose sharply Wednesday after the discount retailer released an upbeat earnings outlook for the next three years.
In numbers released Wednesday, Dollar Tree forecast 12% to 15% annual per-share earnings growth from fiscal 2026 to 2028, headlined by high-teens growth in 2026. The company reiterated its guidance for the remainder of 2025.
Shares were up 7.4% to $102.64 in premarket trading.
The earnings growth would be a significant acceleration from recent years. Earnings per share fell in 2024 from 2023 and are projected to tick up less than 10% at the midpoint of Dollar Tree's guidance in 2025.
Several factors have hampered the company, including tariff mitigation, the transition to a multi-price model at many stores, lower distribution capacity, and the sale of Family Dollar. These costs will dissipate, clearing the way for stronger results in the years ahead, Dollar Tree said.
Despite the mounting challenges and Dollar Tree's reputation as a primarily defensive stock, shares have outperformed this year's bull market, climbing 28% in 2025 as of the close of trading Tuesday.
Fellow discount retailer Dollar General rose 2.2%.