Dollar Tree swung to a surprise fourth-quarter loss and will close nearly 1,000 stores after the discount retailer slashed the value of a rival chain it acquired almost a decade ago.
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. Stripping out certain items, earnings were $2.55 per share, which is still short of the per-share earnings of $2.67 expected on Wall Street, according to a survey by Zacks Investment Research.
At Family Dollar, sales at stores open at least a year slipped 1.2%. Traffic edged up 0.7%, but average ticket fell 2%.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dollar Tree to Close 370 Family Dollar Locations and 30 Dollar Tree StoresDollar Tree, the discount variety store chain, plans to close 370 Family Dollar locations and 30 Dollar Tree stores due to difficulties in maintaining the value of both brands. The company aims to improve profitability and unlock value at Family Dollar.
Read more »
Dollar Tree, Family Dollar Plan to Close 970 US StoresSee multiple perspectives from CNN Business, Fox Business, and Wall Street Journal (News) at AllSides.com.
Read more »
Family Dollar, Dollar Tree to close 1,000 stores after surprise fourth quarter lossDollar 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.
Read more »
Dollar Tree to Close 1,000 Family Dollar Stores After Quarterly LossDollar Tree will close 1,000 Family Dollar stores due to a significant quarterly loss. The company plans to close 600 stores in the first half of the year and an additional 370 stores once their leases expire. Dollar Tree acquired Family Dollar in 2015 and operates over 15,000 stores.
Read more »
Dollar Tree to Close 1,000 Stores as Family Dollar StrugglesDollar Tree announced the closure of 1,000 stores as its subsidiary, Family Dollar, faces challenges due to mismanagement, poor conditions, and a recent rat infestation. The struggling discount chain, catering to low-income customers, has been impacted by inflation, consumer pullback, and reduced benefits for SNAP recipients. Dollar Tree's battle with competitors like Dollar General and Walmart has intensified.
Read more »
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.
Read more »