Dollar Tree, Inc. (DLTR) is trading above its 50-day simple moving average (SMA), signaling a bullish trend. The company is gaining from sales growth across segments, higher traffic trends and market share gains.The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of a stock’s uptrend or downtrend.DLTR Stock Trading Above 50 Day Moving AverageImage Source: Zacks Investment ResearchDLTR has show ...

The latest trading session saw Dollar Tree (DLTR) ending at $72.07, denoting a +1.39% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 1%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 1.51%.Coming into today, shares of the discount retailer had gained 2.92% in the past month. In that same time, the Retail-Wholesale sector lost 3.58%, while the S&P 500 lost 2.14%.Investors will be eagerly watching for the performance of Doll ...

The latest trading session saw Dollar Tree (DLTR) ending at $71.08, denoting a +1.05% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.16%, and the technology-centric Nasdaq decreased by 0.89%.Shares of the discount retailer have appreciated by 1.54% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.84% and the S&P 500's loss of 1.56%.Investors will be eagerly watching for the ...

It has been about a month since the last earnings report for Dollar Tree (DLTR) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Dollar Tree due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Dollar Tree Beats on Q3 Earnings & Sales Esti ...

Investment Thesis - The previous investment thesis on Dollar Tree Stores (NASDAQ: DLTR) was a buy rating due to its potential to provide investors with good exposure to uncertain macroeconomic conditions and attractive valuation [1] - The investment approach focuses on long-term investments while incorporating short-term strategies to uncover alpha opportunities [1] - The analysis is based on bottom-up research, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1] Analyst's Position - The analyst has no stock, option, or derivative positions in any of the mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by any compensation or business relationships with the mentioned companies [2] Seeking Alpha's Position - Seeking Alpha emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations or advice [3] - The views expressed in the article may not represent those of Seeking Alpha as a whole, and the platform is not a licensed securities dealer, broker, or investment adviser [3] - The analysts contributing to Seeking Alpha include both professional and individual investors who may not be licensed or certified by any regulatory body [3]

The consumer spending slump may finally be over for this struggling sliver of the retail market.The better part of 2024 has been particularly challenging for dollar store chains like Dollar General (DG -1.89%) and Dollar Tree (DLTR -1.04%), the latter of which also owns Family Dollar. Whereas higher-earning households have comfortably curbed costs by shopping at Walmart (WMT 0.39%) more often than they have in the past, Dollar Tree's and Dollar General's core customers don't have a comparable downgrade opti ...

Dollar Tree said Wednesday it may adjust or even eliminate certain products if President-elect Trump’s proposed tariffs take effect.  The discount retailer, which has high exposure to China, told analysts it has a "wide range of potential actions" it can take to mitigate additional tariffs if they materialize, including changing product details or sizes and even getting rid of items altogether if they become too expensive. Under the proposals, a universal 10%-20% tariff would be imposed on imports from all ...

Shopper discretionary spending trends are impacting Family Dollar parent company Dollar Tree, as paycheck-to-paycheck consumers continue to feel squeezed in an uncertain economy.Dollar Tree, which operates more than 16,000 stores across the U.S. and Canada, faces a challenging retail landscape as inflationary pressures weigh on shoppers, especially those from lower-income households.“One of the keys we’re seeing is our customers are focusing on their needs,” Dollar Tree Interim CEO Michael Creedon told with ...

Dollar Tree, Inc. (DLTR) has reported strong third-quarter fiscal 2024 results, with both earnings and sales surpassing the Zacks Consensus Estimate and improving year over year. Dollar Tree’s adjusted earnings per share (EPS) grew 15.5% year over year to $1.12 and surpassed the Zacks Consensus Estimate of $1.07.Find the latest EPS estimates and surprises on Zacks Earnings Canledar.Consolidated net sales improved 3.5% year over year to $7.56 billion and beat the Zacks Consensus Estimate of $7.45 billion. En ...

Financial Data and Key Metrics - Total net sales increased by 3.5% to $7.6 billion in Q3 [27] - Adjusted diluted EPS was $1.12, a 16% increase from the previous year [54] - Dollar Tree segment comp increased by 1.8%, driven by a 1.5% increase in traffic and a 0.3% increase in average ticket [28] - Family Dollar segment comp increased by 1.9%, primarily driven by traffic [33] - Adjusted operating income increased by 14% to $343 million, with adjusted operating margin rising by 40 basis points to 4.5% [54] Business Line Performance - Dollar Tree's multi-price 3.0 format stores contributed approximately 30% of total net sales in Q3, with a 3.3% comp increase [20] - Dollar Tree's consumable mix increased by 150 basis points year-over-year to 49.9%, with a 6.2% comp increase [28] - Family Dollar's discretionary comp increased by 3.7%, marking the first positive discretionary comp since Q4 2022 [33] - Dollar Tree's multi-price 3.0 stores saw a 6.6% comp increase in consumables and a modestly positive discretionary comp [20] Market Performance - Dollar Tree's consumables market share gain accelerated, with dollar volume outpacing the industry by 480 basis points and unit volume by 280 basis points [30] - Family Dollar's renovation and store conversion program has completed over 1,500 projects, with high-single-digit comp increases at H2.5 format stores and double-digit comp increases at urban extra small box format stores [36] - Reduced SNAP benefits were a 30 basis point comp headwind for Family Dollar in Q3 [37] Strategic Direction and Industry Competition - The company is focused on accelerating the growth of Dollar Tree and finalizing the strategic review for Family Dollar, which could include a sale, spinoff, or other disposition [10] - Dollar Tree is converting stores to the multi-price 3.0 format, with plans to have approximately 3,000 multi-price 3.0 stores open by year-end [21][22] - The company is prepared to mitigate potential tariff impacts by negotiating lower costs with suppliers, changing product specs, or shifting supply sources [39][40] Management Commentary on Business Environment and Outlook - Customers continue to seek value, with a focus on buying for need and buying closer to the time of need, particularly among lower-income households [17][18] - The company expects low-single-digit comps in Q4 for both Dollar Tree and Family Dollar, with net sales projected to be in the range of $8.1 billion to $8.3 billion [48][61] - Management remains optimistic about the holiday season, with an expanded Christmas assortment and improved store conditions [46][47] Other Important Information - The company opened 567 new stores in Q3, with over 85% under the Dollar Tree banner, increasing the Dollar Tree store base by over 7% year-over-year [24] - The company is working to restore supply chain efficiency after challenges related to a tornado-destroyed DC in Marietta, Oklahoma [25] - CFO Jeff Davis will be stepping down, and the company has launched an external search for his successor [49] Q&A Session Summary Question: Impact of one-time items and Family Dollar strategic review on earnings outlook - One-time items from FY'24 will be added back to the base level for FY'25, but no guidance was provided on the impact of the Family Dollar strategic review [72] - The company has multiple strategies to mitigate potential tariff impacts, including changing product specs, negotiating with suppliers, and shifting supply sources [73] Question: Softness in November and holiday season outlook - November comps were soft due to the election and later Thanksgiving, but the company expects a stronger December with Christmas falling mid-week [75][76] - Customers are buying closer to the time of need, with strong performance in consumables and seasonal products like Halloween and Thanksgiving [76] Question: Customer demand trends and multi-price rollout performance - Lower-income customers are pressured and focused on consumables, while middle and higher-income customers are reducing discretionary spending [80] - Multi-price 3.0 stores are performing well, with Q1 conversions being the strongest, followed by Q2 and Q3 [88][93] Question: Family Dollar's momentum and sustainability - Family Dollar's positive discretionary comp is attributed to targeted merchandising efforts and store renovations, with long-lasting impacts expected [84] Question: Multi-price rollout cadence and performance - Multi-price 3.0 stores are seeing increased customer trips and basket size, with Q1 conversions performing the strongest [87][88] - The company is balancing the rollout to ensure execution quality, with plans to continue conversions over the next 18-24 months [91] Question: Margin performance and SG&A leverage - Temporary labor costs for the multi-price rollout are expected to normalize over the next 18-24 months, with SG&A leverage opportunities as the rollout matures [104][106] - Gross margin improvements were driven by lower freight costs, but SG&A deleveraged due to higher depreciation and temporary labor costs [102][104] Question: Gross margin acceleration and freight cost benefits - The company raised the benefit from lower freight costs by $0.10 for the year, but this was offset by storm-related costs and inventory markdowns [109] Closing Remarks - Management thanked participants and wished everyone a happy holiday season, concluding the call [112][113]