Dollar Tree is gaining market share among higher-income consumers. About 50% of its business comes from middle-income shoppers. The company has seen stronger demand from higher-income customers due to sustained inflation. Dollar Tree has introduced prices higher than $1.25 at approximately 2,900 multi-price stores, with items costing between $1.50 and $7. In its fiscal fourth-quarter earnings, Dollar Tree reported net sales of $5 billion for its continuing operations, with same-store sales increasing by 2%. Adjusted earnings per share were $2.11 for the quarter. For fiscal 2025, the company expects net sales to range from $18.5 billion to $19.1 billion, with same-store sales growth projected at 3% to 5%. Adjusted earnings per share are anticipated to be between $5 and $5.50. The initial 10% tariffs on China were expected to cost Dollar Tree $15 million to $20 million monthly, but the company mitigated about 90% of this impact. Additional tariffs could add another $20 million per month to costs. Dollar Tree is considering price hikes to offset these tariffs. The company also announced the sale of its Family Dollar chain for about $1 billion.
Source: www.cnbc.com















