Dollar Tree To Close Nearly 1,000 Stores As Earnings Fall Short

Discount retailer Dollar Tree (DLTR) has announced plans to close nearly 1,000 stores after its latest financial results missed Wall Street targets.

Specifically, the company said it plans to close 970 of its Family Dollar stores as the retailer looks revitalize its slumping business.

Dollar stores in the U.S. and Canada have been struggling amid increased competition from rivals such as Walmart (WMT).

Dollar Tree said it would close 600 Family Dollar stores in the first half of this year and another 370 more over a period of several years, along with 30 Dollar Tree outlets as leases expire.

News of the store closures comes as the company reported a loss of $1.71 billion U.S., or $7.85 U.S. per share, for the fourth quarter of 2023. A year ago, Dollar Tree posted a profit of $452.2 million U.S., or $2.04 U.S. a share.

Revenue in Q4 2023 came in at $8.63 billion U.S., below analysts’ estimates of $8.67 billion U.S.

Looking ahead, Dollar Tree said it expects revenue of $31 billion U.S. to $32 billion U.S. for all of this year. It also expects a 2024 profit of $6.70 U.S. to $7.30 U.S. a share.

Both the 2024 revenue and profit estimates fell short of Wall Street forecasts.

The stock of Dollar Tree is down 14% today (March 13) on news of the store closures and earnings disappointment.

Prior to today, Dollar Tree’s share price had risen 5% over the last 12 months to trade at just under $150 U.S. a share.

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