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CHESAPEAKE, Va. - Dollar Tree, Inc. (NASDAQ:DLTR), the $21.9 billion discount retailer that has seen its stock surge 39% year-to-date, announced Wednesday that its Board of Directors has replenished the company’s share repurchase authorization to $2.5 billion, restoring the limit previously approved in September 2021.
The discount retailer reported that approximately $450 million remained under the prior authorization at the end of its fiscal 2025 first quarter. The refreshed authorization includes any amounts remaining under the pre-existing program.
"Our disciplined capital allocation strategy will continue to prioritize investing in the growth of the Dollar Tree platform and then returning excess cash to shareholders," said Michael C. Creedon, Jr., Chief Executive Officer.
The authorization allows Dollar Tree to purchase its common stock from time to time in the open market or through privately negotiated transactions, subject to market conditions. The Board’s authorization has no expiration date.
Dollar Tree operates more than 9,000 stores and 18 distribution centers across 48 contiguous U.S. states and five Canadian provinces under the Dollar Tree and Dollar Tree Canada brands, with approximately 150,000 associates.
The information in this article is based on a company press release statement.
In other recent news, Dollar Tree has completed the sale of its Family Dollar business to private investment firms Brigade Capital and Macellum Capital for approximately $1 billion. The transaction is expected to yield about $800 million in net proceeds and generate a cash tax shield of $375 million. This move allows Dollar Tree to concentrate on its primary brand and is anticipated to boost its income by $85-$90 million in the latter half of 2025. Despite this divestiture, Dollar Tree’s first-quarter results exceeded expectations with a 5.4% increase in comparable sales and adjusted earnings per share of $1.26, surpassing analysts’ projections. For fiscal year 2025, Dollar Tree has set high expectations for comparable sales growth and raised its adjusted EPS guidance, reflecting the impact of share repurchases. Analysts from Truist Securities have raised their price target for Dollar Tree to $109, maintaining a Buy rating, while UBS also reaffirmed its Buy rating with a $108 price target. UBS noted some confusion around guidance due to expected cost increases, but Dollar Tree has raised its full-year gross margin outlook. Truist Securities highlighted that temporary cost impacts are expected to diminish by 2026, supporting confidence in Dollar Tree’s growth potential.
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