Dollar Tree will close nearly 1,000 stores and swung to a surprise fourth quarter loss as the discount retailer took a related $1.07 billion goodwill impairment charge.
FILE - A customer exits a Dollar Tree store holding a shopping bag on Wednesday, May 11, 2022, in Jackson, Miss. Dollar Tree says it plans to close nearly 1,000 stores and moved to a surprise loss in its fiscal fourth quarter as the discount retailer took a $1.07 billion goodwill impairment charge. Shares dropped more than 7% before the market open on Wednesday, March 13, 2024.
On Wednesday, Dollar Tree said that it would record a $950 million impairment against the trade name Family Dollar, on top of a $1.07 billion goodwill charge. Family Dollar will spend more than $594 million closing or rebranding stores, essentially erasing profits from the holiday season. Saunders said in an emailed statement that nearly 12% of current Family Dollar stores will be closing over the next three years.For the three months ended Feb. 3, Dollar Tree lost $1.71 billion, or $7.85 per share. A year earlier the Chesapeake, Virginia, company earned $452.2 million, or $2.04 per share.
Revenue climbed to $8.64 billion from $7.72 billion, a bit below Wall Street's estimate of $8.67 billion.that have been stung by inflation as they seek to cut spending. During the quarter, sales at Dollar Tree stores open at least a year climbed 6.3%, with traffic up 7.1%. While more shoppers were heading to stores, they were closely watching how much they spent, with average ticket down 0.7%.
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Dollar Tree, Family Dollar to close 1,000 locationsJustin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.
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