US retailer Dollar Tree has raised its full-year 2025 outlook after stronger third quarter (Q3) sales and earnings from continuing operations, excluding discontinued Family Dollar results. 

Net sales for the quarter increased 9.4% to $4.7bn.  

Same store net sales were up 4.2%, supported by a 4.5% increase in average ticket, while customer traffic edged down 0.3%. 

The retailer’s gross profit for the period was $1.7bn, an increase of 10.8% compared to the previous year. 

The company’s gross margin widened by 40 basis points to 35.8%, which it attributed to improved mark-on from pricing actions, lower freight expenses and a more favourable mix of sales. 

Operating income grew 3.8% to $343.3m. However, operating margin slipped by 40 basis points to 7.2%.  

During the quarter, Dollar Tree opened 106 new stores and converted 646 locations to its Dollar Tree 3.0 multi-price format. 

Year-to-date to 1 November 2025, the company generated $958.5m in net cash from operating activities and $88.2m in free cash flow.  

For the 39 weeks ended 1 November 2025, net sales rose 11% to $13.9bn.  

Same-store sales increased 5.4%, reflecting a 1.8% rise in traffic and a 3.6% uplift in average ticket.  

Operating income for the period reached $958.4m, while operating margin declined 50 basis points to 6.9%.  

Dollar Tree has updated its fiscal 2025 guidance. It now anticipates full-year net sales between $19.35bn and $19.45bn, and comparable store net sales growth of 5% to 5.5%.  

The company has raised its adjusted diluted earnings per share (EPS) forecast to a range of between $5.60 and $5.80. 

For Q4, Dollar Tree expects net sales to range between $5.4bn and $5.5bn, and comparable store net sales growth of 4% to 6%.  

Adjusted diluted EPS for the period is projected to be between $2.40 and $2.60. 

Dollar Tree CEO Mike Creedon stated: “Our multi-price strategy drove strong momentum across our business in the third quarter and helped deliver an all-time record Halloween season.  

“With 85% of our assortment priced at two dollars or less, we continue to deliver exceptional value, while our multi-price assortment allows us to offer even more high-quality products and great gift options for the holidays.”