Dollar Tree, Inc. (DLTR.US) expects its earnings per share to increase by 12-15% annually over the next three years, causing its stock price to surge significantly in pre-market trading.

Dollar Tree, Inc. (DLTR.US) said on Wednesday that it expects its earnings per share to grow at a rate of 12-15% annually over the next three years. The company, headquartered in Chesapeake, Virginia, also stated that due to cost advantages, it expects its earnings per share for the 2026 fiscal year to see "nearly 20%" growth. These performance expectations were announced prior to an investor presentation later on Wednesday. Following the sale of the underperforming Family Dollar business for approximately $1 billion, Dollar Tree, Inc. is adjusting its strategic focus under CEO Mike Creedon's leadership. The $1 billion sale price is significantly lower than the nearly $9 billion cost of acquiring the business ten years ago. So far in the third quarter, the company's same-store sales have grown by 3.8%, higher than the analyst average of 3.7%. The company has maintained its previous performance guidance for this quarter and the full year. Before the market open on Wednesday, Dollar Tree, Inc. shares rose by over 8%. As of Tuesday's close, the company's stock price has already risen by 28% year-to-date. However, analysts at Jefferies Financial Group Inc. remain cautious about Dollar Tree, Inc., describing its business reforms as "chaotic" - since early 2023, only 2 out of 16 executives have remained with the company. Dollar Tree, Inc. sources most of its merchandise for overseas procurement from China, which exposes it to significant risks amid escalating trade tensions. While increased traffic from higher-income consumers has supported the company, tariffs are expected to pose a more serious obstacle in the second half of the year. Meanwhile, with consumers cutting back on spending, market competition is intensifying. Last month, Dollar Tree, Inc. stated that the benefits of price increases would gradually fade, and profits for this quarter are expected to remain flat compared to the previous period, disappointing investors.