(Bloomberg) -- Dollar Tree Inc.’s shares jumped after the retailer projected earnings per share to gain at a compound rate of as much as 15% over the next three years.

The Chesapeake Virginia-based company said earnings per share is expected to grow by a “high-teens percentage” in fiscal 2026 due to cost benefits.

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Dollar Tree, which made this projection ahead of an investor presentation slated for later on Wednesday, is trying to sharpen its focus under Chief Executive Officer Mike Creedon after selling the struggling Family Dollar chain for about $1 billion. That was far less than the almost $9 billion it paid for the business ten years ago.

Same-store sales rose 3.8% so far in the third quarter. Analysts on average estimate a gain of 3.7%. The company is also sticking to its previous guidance for the quarter and full year.

Shares advanced as much as 9.3% in premarket trading on Wednesday. The company’s stock has risen 28% this year through Tuesday’s close.

Jefferies analysts said they remain cautious, calling the company’s overhaul “messy” with only two of 16 officers remaining at Dollar Tree since early 2023.

The retailer gets the majority of its foreign-sourced goods from China, leaving it vulnerable to mounting trade tensions.

While more traffic from higher income consumers has helped the company, tariffs are expected to present a tougher hurdle in the second half. At the same time, competition has intensified as shoppers cut back on spending.

The retailer disappointed investors last month when it said the benefit of price increases will dissipate and profit for the current quarter will be little changed.

--With assistance from Lisa Pham.

(Updates first paragraph.)

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