Is Dollar Tree struggling?
Dollar Tree has struggled since its purchase of Family Dollar in 2015 for $8.5 billion. Its stock price, sales and profit growth, and store openings have lagged behind Dollar General and other discount chains. The company is on its third CEO since 2015.
Is Dollar Tree stock a good buy?
It may not seem like a great place to invest, but dollar stores are actually quite profitable....Leading dollar store stocks.StockMarket CapDescriptionDollar General (NYSE:DG)$49 billionThe largest dollar store chain by sales and number of locations.2 more rows
How is Dollar Tree doing financially?
Operating income for the year was $1.81 billion , compared with $1.89 billion in the prior year and operating income margin was 6.9%, compared to 7.4% for fiscal 2020. Net income was $1.33 billion and diluted earnings per share improved 2.7% to $5.80 , compared to $5.65 in the prior year.
Is Dollar Tree or Dollar General a better investment?
CNBC's Jim Cramer on Thursday said investors who value consistency should buy Dollar General while risk-takers should purchase Dollar Tree. “If you want a consistent operator that doesn't need to do anything too crazy to beat the estimates, that's Dollar General.
Will Dollar Tree stock go up?
The 21 analysts offering 12-month price forecasts for Dollar Tree Inc have a median target of 185.00, with a high estimate of 206.00 and a low estimate of 110.00. The median estimate represents a +19.73% increase from the last price of 154.51.
Which dollar store stock is best?
5 Best Stocks to Buy in JuneStockSymbol2021 Sales ($)Dollar GeneralDG34.22 billionDollar TreeDLTR26.32 billionBig LotsBIG6.15 billionFive BelowFIVE2.84 billionApr 21, 2022
How much does a Dollar Tree owner make?
The Institute for Policy Studies noted in a May study that Witynski—who took over as Dollar Tree's CEO in July of 2020—received $11.3 million in total compensation last year. "That's 715 times as much as the pay for the company's median worker, a part-time U.S. store employee who earned $15,816," IPS observed.
Who is Dollar Tree owned by?
Macon Brock, Doug Perry, and K.R. Perry started K&K Toys in Norfolk, Virginia. This mall concept toy store grew to over 130 stores on the East coast. The K&K 5&10 store continued to exist and served as the foundation for what would become Dollar Tree.
How much did Dollar Tree make in profits in 2020?
$7.79 billionDollar Tree same-store sales increased 2.2%. Gross profit increased 10.6% to $7.79 billion. Gross margin improved 70 basis points to 30.5%, compared to 29.8% in the prior year. Fiscal 2020 included $36.3 million, or 15 basis points, related to COVID-19 costs.
Why is Dollar Tree stock up?
Shares of Dollar General and Dollar Tree popped Thursday, as the discounters beat Wall Street's quarterly earnings expectations, raised outlooks for the coming year and spoke of consumers flocking to lower prices during inflationary times. Dollar General shares rose 13.71% to close at $222.13 on Thursday.
What is difference between Dollar Tree and Dollar General?
The major difference between Dollar General and Dollar Tree is that Dollar Tree is a true dollar store, while Dollar General (once a dollar store) offers deep discounts on its merch.
Is everything in Dollar Tree a Dollar?
That's right, despite the name, not all dollar stores sell every item in the store for just a dollar or less. Dollar Tree is an actual dollar store (for the most part). The company recently announced it will sell items in certain locations for more than its typical $1 price.
Shares of the discount chain pulled back after it suspended its guidance because of the coronavirus outbreak
What happened
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So what
Shares of Dollar Tree ( NASDAQ:DLTR) finished lower today after the discount retailer, which also owns Family Dollar, issued a COVID-19 update and suspended its guidance due to uncertainty around the coronavirus. The stock finished the session down 8%.
Now what
The company said that both the Dollar Tree and Family Dollar stores had seen a material increase in sales during March, especially for products like cleaning supplies, paper goods, food, and over-the-counter medicine. Thus far, the company has limited store hours, closing locations at 8 p.m. to allow more time for cleaning and restocking shelves.
What happened
Management added that the company's balance sheet was strong with $1.9 billion in cash and equivalents and has $500 million remaining on a line of credit, which should be a sufficient cushion for the current volatility.
NASDAQ: DLTR
Shares of Dollar Tree ( DLTR 3.18% ) slipped 11.5% in March, according to data from S&P Global Market Intelligence.
So what
Dollar Tree reported fourth-quarter earnings on March 4, delivering adjusted earnings per share of $1.79, topping the average analyst estimate of $1.76. But revenue of $6.32 billion for the period fell short of the average analyst call for $6.39 billion.
Now what
Fourth-quarter results came with guidance for the current fiscal year and the added caveat that the targets did not account for potential coronavirus-related effects on supply chains and other aspects of the company's business.
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Discount-retail stocks have climbed early in April's trading, with gains at least partly driven by momentum for the broader market. Dollar Tree's gains have lagged behind those for Dollar General and Big Lots, but the stock is still up roughly 8% in the month's trading so far.
