Dollar Tree Authorizes $2.5B Share Repurchase Plan: What to Know?

Dollar Tree, Inc. DLTR has been making smart moves to enrich shoppers’ experience and bolster growth. The company has been taking strategic measures to maximize shareholders’ value as well.In the latest revelation, the company’s board has replaced its share repurchase authorization to a total amount of $2.5 billion. This limits the earlier authorization approved by its board in September 2021. Let’s discover more.A Glance at DLTR’s FinancialsAs of May 3, 2025, roughly $0.45 billion remained under the company’s board’s prior the latest repurchase authorization, consisting of the amounts left under its pre-existing program. DLTR’s board’s authorization allows it to make purchases of its common stock from time to time in the open market or via privately negotiated transactions, up to the total authorized amount. This authorization is without any expiration date.In first-quarter fiscal 2025, the company repurchased 5.9 million shares for $436.8 million. It had bought an additional 780 thousand shares for $67.5 million, subsequent to the end of the quarter. Dollar Tree had nearly $519.7 million under its $2.5-billion repurchase authorization, as of May 3, 2025. DLTR’s disciplined capital allocation approach prioritizes strategic investments within the Dollar Tree platform, followed by the return of excess cash to shareholders. The latest repurchase authorization shows the company’s ability to deliver sustainable cash flow. As of May 3, 2025, it incurred capital expenditures of $248.8 million, with adjusted free cash flow from continuing operations of $129.7 million.Dollar Tree ended first-quarter fiscal 2025 with a net long-term debt, excluding the current portion of $2.4 billion, down from $3.4 billion recorded in the year-earlier quarter’s end. The company had cash and cash equivalents of $1 billion as of May 3, 2025, significantly up from $390.6 million seen in the year-ago quarter. The company ended the reported quarter with no borrowings under its revolvers. On May 15, 2025, it leveraged a combination of cash and its commercial paper program to redeem its $1.0 billion 4% Senior Notes.  As of June 2, 2025, it had $550 million of commercial paper notes outstanding.DLTR’s Price Performance, Valuation and EstimatesShares of Dollar Tree have gained 39.8% year to date compared with the industry’s growth of 3.9%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, DLTR trades at a forward price-to-earnings ratio of 18.16X compared to the industry’s average of 32.42X.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for DLTR’s fiscal 2025 and fiscal 2026 earnings implies year-over-year growth of 6.5% and 14.3%, respectively. The company’s EPS estimate for fiscal 2025 and fiscal 2026 has moved north in the past 30 days.Image Source: Zacks Investment ResearchDollar Tree stock currently carries a Zacks Rank #3 (Hold).Key Picks in RetailWe have highlighted three better-ranked stocks, namely Urban Outfitters URBN, Canada Goose GOOS and Haverty Furniture Companies HVT.Urban Outfitters, a lifestyle specialty retailer that offers fashion apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales indicates growth of 8.5% from the year-ago figure. URBN delivered an average earnings surprise of 29% in the last four quarters.Canada Goose, a global outerwear brand, currently carries a Zacks Rank #2 (Buy). GOOS delivered an average earnings surprise of 57.2% in the trailing four quarters.The Zacks Consensus Estimate for Canada Goose’s current financial-year sales indicates growth of 2.9% from the year-ago figure. Haverty Furniture, a home-furnishings retailer in the Southern and Midwestern regions, currently has a Zacks Rank of 2. HVT delivered an average earnings surprise of 62.8% in the trailing four quarters.The Zacks Consensus Estimate for HVT’s current financial-year sales indicates growth of 3.9% from the year-ago figure.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Haverty Furniture Companies, Inc. (HVT): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks