Dollar Tree Reports In Line Q1 Results, Announces Potential Sale or Spin-off of Family Dollar

Dollar Tree (NASDAQ:DLTR) reported Q1 earnings that met expectations and revised its outlook for the full fiscal year 2024.

For Q1, the discount retailer reported earnings per share (EPS) of $1.43, aligning with the analyst forecast of $1.43. Revenue for the quarter was $7.63 billion, slightly below the expected $7.65 billion.

Comparable sales across the enterprise grew by 1%, compared to 4.8% year-over-year, but fell short of the anticipated 2.33%. The gross profit margin was 30.8%, up from 30.5% the previous year, meeting the estimate of 30.8%.

For fiscal year 2025, the company forecasts an EPS range of $6.50 to $7.00, down from the previous range of $6.70 to $7.30, and below the consensus estimate of $6.89 at the midpoint. Expected revenue for the year is between $31 billion and $32 billion, compared to the projected $31.4 billion.

Additionally, the company announced a strategic review of its Family Dollar business, exploring options such as a potential sale or spinoff, with JPMorgan Chase leading the review.

This news, initially reported by the Wall Street Journal, led to a 5% increase in shares in pre-market today, but currently they are down more than 4% intra-day.