By Denny Jacob

Dollar Tree's losses widened in the fourth quarter but the business stands to benefit from a greater allocation of resources after the company confirmed a sale of its Family Dollar business.

The discount-store operator widened its loss to around $3.7 billion, or $17.17 a share, for the thirteen weeks ended Feb. 1, from $1.71 billion, or $7.83 a share, for the 14 weeks ended Feb. 3, 2024.

Stripping out certain one-time items, earnings came in at $2.29 a share. Analysts polled by FactSet expected $2.20 a share.

Revenue climbed to around $5 billion from $4.96 billion. Analysts polled by FactSet expected $8.24 billion.

The Chesapeake, Va., company on Wednesday disclosed an agreement to sell the Family Dollar business to Brigade Capital Management and Macellum Capital Management for $1.01 billion, confirming an earlier report by The Wall Street Journal.

The fourth quarter results are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations, the company noted.

Dollar Tree guided for first-quarter sales from continuing operations to be between $4.5 billion and $4.6 billion based on comparable store sales growth in the range of 3% and 5%. Adjusted earnings is estimated to be in the range of $1.10 to $1.25.

Dollar Tree forecast sales from continuing operations between $18.5 billion and $19.1 billion based on comparable store sales growth in the range of 3% and 5% for fiscal 2025. Adjusted earnings per-share from continuing operations is forecast to be in the range of $5 and $5.50.

"With the sale of Family Dollar set to close later this year, we will be able to fully dedicate ourselves to Dollar Tree's long-term growth, profitability, and returns on capital," said Chief Executive Mike Creedon.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

March 26, 2025 07:03 ET (11:03 GMT)

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