Family Dollar Highlights Strong Fiscal 2025 Performance as Transformation Strengthens Business

Company highlights operational progress, disciplined strategy, and focus on strengthening long-term growth

CHESAPEAKE, Va., March 17, 2026 /PRNewswire/ -- Family Dollar today announced strong fiscal year 2025 performance and continued momentum in its strategic transformation, reflecting improved operational execution, disciplined cost management, and the dedication of associates across its stores, distribution centers, and store support center.

The company delivered results ahead of internal expectations across every major financial line in fiscal 2025, driven by improvements in pricing strategy, inventory management, supply chain efficiency, and shrink reduction.

Family Dollar is continuing to execute a comprehensive transformation designed to strengthen its core operations, simplify the business, and position the company for long-term growth.

"Over the past year, we've taken disciplined actions to strengthen the foundation of Family Dollar, and the progress we're seeing reflects the focus and commitment of our teams across the organization," said Duncan MacNaughton, Chairman and Chief Executive Officer. "We are focused on simplifying the business, improving execution in our stores, and ensuring we are positioned to serve our customers and communities for the long term."

Fiscal 2025 Financial Highlights
Family Dollar's strong financial performance reflects operational improvements and disciplined execution gaining traction across the business.

Key results for the year include:

• Approximately $13 billion in revenue
• Comparable sales growth of 2.5%
• EBITDA performance of $495 million, exceeding internal budget by 24%

EBITDA generation accelerated following the separation, with momentum building in the back half as transformation initiatives and operational improvements across pricing, inventory management, and supply chain execution began delivering measurable results.

Additionally, the company took disciplined actions to optimize its store fleet, including closing underperforming locations as part of its broader transformation strategy which delivered downstream benefits across the entire business.

Strengthened Financial Position
Family Dollar also significantly strengthened its financial foundation during fiscal 2025 as operational improvements translated into stronger cash flow and balance sheet performance.

The company improved its balance sheet and liquidity position, including:

• Over $300 million improvement in net debt since separation
• Net debt leverage ratio below 1x
• Total liquidity of approximately $1 billion at year-end, including cash and availability under its credit facility

These improvements position Family Dollar to continue investing in operational improvements and long-term growth as transformation initiatives deliver results.

Transformation Progress
The company's transformation efforts are supported by a Value Creation program encompassing approximately 70 initiatives across merchandising, store operations, supply chain, and technology designed to strengthen the foundation of the business and drive sustainable growth. Transformation initiatives that began with the company's separation delivered meaningful results in the back half of 2025 and are expected to continue driving progress in 2026, alongside an accelerating pipeline of new initiatives launching this year.

Outlook
As Family Dollar enters fiscal 2026, the company expects continued operational progress as transformation initiatives deliver additional benefits.

The company's current financial planning reflects approximately 25% EBITDA growth in fiscal 2026 compared to fiscal 2025, driven by positive comparable store sales growth, continued working capital improvements, operational efficiencies, and ongoing execution of its Value Creation initiatives. As part of its multi-year plan, the company is targeting EBITDA to exceed $1 billion.

The company is also advancing new store growth initiatives, including the development of an extra small box (XSB) store format designed to expand Family Dollar's presence in dense urban markets. Family Dollar expects to pilot the new format in 2026, with the goal of supporting unit growth beginning in 2027 and beyond. The format is designed to complement the company's existing store base while enhancing its ability to serve customers in high-density neighborhoods.

Family Dollar remains focused on strengthening its core business, delivering meaningful cash flow generation and positioning the company for long-term success.

"We are building a stronger, more focused Family Dollar," MacNaughton added. "Our teams are executing with discipline, and we remain confident in our ability to deliver long-term value for our customers, associates, and communities."

Forward-Looking Statements
This press release contains forward-looking statements, including Family Dollar's future performance, expected operational improvements and financial performance, and target financial results. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.

About Family Dollar
Family Dollar operates thousands of neighborhood stores across the United States, providing customers with a broad assortment of everyday essentials at great value. The company serves millions of customers each week and is committed to delivering convenience, affordability, and exceptional service in communities across the country.

SOURCE Family Dollar Stores, LLC