Dollar Tree Q4 sales up 9%, traffic falls; to open 400 stores
Dollar Tree returned to profitability in a strong fourth quarter as its ongoing shift to a multi-price assortment continues to resonate with consumers.
The discounter opened 402 new stores in fiscal 2025, and converted or added about 2,400 stores to its multi-price format. It ended the year with approximately 5,300 multi-price stores.
On the earnings call, Dollar Tree CEO Mike Creedon told analysts that the company continues to see “really strong” customer acceptance for multi-price, particularly in the $3-$5 range, where the assortment expansion is driving incremental demand.
“While the distinction between our different store formats is becoming less pronounced as multi-price elements are integrated across all stores, our inline multi-price stores continue to deliver meaningfully higher sales productivity than legacy formats, reinforcing the structural productivity benefits of the model as we scale,” Creedon said.
Dollar Tree plans to open approximately 400 new stores in its current fiscal year. Capital expenditures are put at $1.1 billion to $1.2 billion.
Net sales increased 9.0% to $5.45 billion rose 9% to $4.45 billion for the quarter ended Jan. 31. Same-store sales increased 5%. The average ticket increased 6.3%, partially offset by a 1.2% decline in traffic. Creedon attributed the decline to the company's re-stickering effort, which is now nearly finished.
“That process was a system-wide reset, new signage, improved price clarity and assortment updates designed to modernize the shopping experience,” Creedon said on the company's earnings call.
The company reported net income of $506.1 million, or $2.53 per share, for the quarter, compared with a loss of $3.69 billion or $17.17 per share, in the year-ago period. Adjusted earnings per share, were $2.56, up from $2.11 a year ago and beating analysts’ estimates of $2.53.
Gross profit increased 13.3% and gross profit margin increased 150 basis points to 39.1%. The improvement in gross margin was primarily driven by improved mark-on from pricing initiatives and lower domestic and import freight costs. These benefits were partially offset primarily by higher tariff costs.
"Our strong results this quarter show that Dollar Tree remains America’s retail destination for value, convenience, and discovery — underscored by our 20th consecutive year of positive same store sales,” Creedon said in the earnings statement. “By delivering great value at low prices, with disciplined execution, we continue to expand our reach and drive long-term growth.”
Dollar Tree completed its $1.01 billion sale of Family Dollar in July 2025.
Dollar Tree expects full fiscal 2026 same-store-sales growth of 3% to 4% and adjusted earnings of $6.50 to $6.90 per share.
The retailer operates more than 9,200 stores and 18 distribution centers across 48 contiguous states and seven Canadian provinces under the brands Dollar Tree and Dollar Tree Canada.
