Dollar Tree plans to sell Family Dollar for $1 billion, sees success with higher-income customers

From CNBC: 2025-03-26 14:51:00

Dollar Tree sees success with higher-income customers amid Trump’s tariffs. CEO Michael Creedon notes value-seeking behavior across all income groups, with significant demand from wealthier shoppers. The retailer may raise prices on certain items to mitigate tariff impact. Dollar Tree also plans to sell struggling Family Dollar chain for $1 billion.

In Q4, Dollar Tree reports $5 billion in net sales with 2% same-store sales growth. Adjusted earnings per share reach $2.11. For fiscal 2025, the company expects net sales of $18.5 billion to $19.1 billion, with 3% to 5% same-store sales growth. Adjusted earnings projected at $5 to $5.50 per share.

Creedon mentions potential tariff impacts, with an estimated $20 million monthly hit from recent duties on China, Mexico, and Canada. Dollar Tree has mitigated 90% of the initial tariff effects. The company continues to work on offsetting future duties, with uncertainty around their implementation and timing.



Read more at CNBC: Dollar Tree discusses Family Dollar sale, earnings and tariffs