Dollar Tree (NASDAQ: DLTR) is experiencing a turnaround with a 30% year-to-date stock increase, driven by steady demand from cost-conscious consumers and improved operational efficiencies. The discount retailer reported an 11.6% year-over-year increase in net revenue for the first quarter ended March 31, 2023, aided by a 5.4% rise in comparable sales and the opening of 148 new stores, resulting in adjusted earnings per share (EPS) of $1.26.
In a strategic move, Dollar Tree has announced the sale of its Family Dollar chain for $1 billion to streamline operations, amid potential monthly costs of $20 million from proposed tariffs on imported goods. The company anticipates full-year comparable sales growth of 3% to 5%, with EPS guidance between $5.15 and $5.65, slightly below the prior year’s estimate of $5.51.
Despite competitive pressures from larger rivals like Dollar General and Walmart, Dollar Tree’s focus on a low-cost business model and value-driven product offerings continues to attract a loyal customer base across its more than 9,000 stores in the U.S. and Canada.
