Key Takeaways

Dollar Tree ( DLTR ) shares rose Wednesday morning after the discount retailer reported better-than-expected third-quarter results.

Dollar Tree recorded $7.57 billion in revenue and $233.3 million in net income , up from $7.31 billion and $212.0 million a year ago. Analysts polled by Visible Alpha had projected $7.45 billion and $225.5 million, respectively.

The company narrowed its full-year revenue outlook, projecting a range between $30.7 billion and $30.9 billion, with the bottom end lifted from $30.6 billion previously. Full-year adjusted earnings per share (EPS) is seen between $5.31 and $5.51, narrowed from the previous range of $5.20 to $5.60.

Family Dollar Review Progressing, CFO Set To Depart

Dollar Tree said that its "strategic review" of options for the Family Dollar brand announced in June "remains on track," with no set timeline to be completed. Roughly a decade after Dollar Tree acquired the brand, a sale or spinoff remains a possibility.

Of the nearly 1,000 "underperforming" Family Dollar locations that the company said it planned to shut down earlier this year, Dollar Tree has closed about 670 through Q3, and expects to close another 25 in the fourth quarter.

In addition to CEO Rick Dreiling's departure from the company last month due to health issues, Dollar Tree said Wednesday that CFO Jeff Davis will step down from his post. An external search has begun, and the company said Davis has agreed to stay on through the filing of Dollar Tree's annual 10-K at the end of fiscal 2024.

Dollar Tree shares, which had lost nearly half their value this year through Tuesday's close, rose 3.5% in premarket trading.

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