Dollar Tree announced their fiscal fourth-quarter earnings on Wednesday and they plan to close hundreds of stores and renovate about 1,000 of them.
“We are confident we are taking the appropriate steps to reposition our Family Dollar brand for increasing profitability as business initiatives gain traction in the back half of fiscal 2019,” CEO Gary Philbin stated.
Remodeled Family Dollar stores will sell alcohol and have a $1 Dollar Tree merchandise aisle. The cooler and freezer sections in hundreds of stores will expand, about 200 Family Dollars will become Dollar Tree. As of Feb. 2, the company had 7,001 Dollar Tree stores and 8,236 Family Dollar locations.
The company’s earnings surpassed Wall Street Journal’s projections. They “reported a profit of $1.93 per share during the 13 weeks ended Feb. 2 compared with average estimates of $1.92 a share compiled by Refinitiv. Sales at stores open for at least a year rose 2.4 percent versus an estimate of 1.5 percent. It generated $6.21 billion in revenue, better than the $6.19 billion expected by Wall Street but down slightly from $6.36 billion a year earlier,” CNBC writes.
The outlet also said, “On an unadjusted basis, the company had a loss of $2.31 billion, or a loss of $9.66 a share, compared with a profit of $1.04 billion, or $4.37 a share, during the same quarter last year, which included an extra week.”
