Dollar Tree Targets Achieving $10+ EPS In 2026, Sees Future Cash Flow For Capital Allocation

Dollar Tree, Inc. DLTR forecasts an EPS of $10 or more in the fiscal year 2026, expanding its footprint with significant available cash for capital allocation. 

"We have compelling plans in place to deliver expanded value assortment across multiple price points, enhance store standards for our customers, and add new technology and capabilities to accelerate progress with our supply chain and people development," said Chairman & CEO Rick Dreiling.

Dollar Tree operated 16,419 stores across 48 states and five Canadian provinces as of April 29, 2023.

Also Read: Dollar Tree Shares Take A Nosedive: Unpacking The Reasons Behind The Company's Sudden 12% Decline

In its Investor Conference today in Norfolk, Va, the company is reaffirming its outlook for the second quarter and fiscal 2023.

For Q2, the company sees consolidated net sales of $7 billion-$7.2 billion versus the Street view of $7.17 billion.

In the quarter to be reported, Dollar Tree will see mid-single-digit increases in same-store sales for the enterprise and the Dollar Tree and Family Dollar segments. 

Diluted EPS in Q2 is expected between $0.79 and $0.89, versus the Street view of $0.86.

For FY23, Dollar Tree sees consolidated net sales of $30 billion-$30.5 billion, compared with the analyst consensus of $30.36 billion. The company forecasts diluted EPS of $5.73 to $6.13 versus the $6.01 consensus.

Price Action: DLTR shares are trading higher by 0.34% to $137.00 in the premarket on the last check Wednesday.