1448 ET - Dollar Tree's multi-price rollout carries risks, says Bank of America's Robert Ohmes, who maintains an underperform rating on the company's shares ahead of Wednesday morning's fiscal 4Q earnings report. Ohmes says the strategy, which will entail use of multiple price points between $1.50 and $7 on products at Dollar Tree stores, could mean a decelerated same-store-sales benefit from converted stores, as well as increased store complexity and competitive risks as the company edges into higher-price-point retail. The analyst also sees tariffs possibly pressuring gross margin, although he also says the multi-price strategy gives it flexibility, along with alternative sources of production for its major product categories. (sarina.isaacs@wsj.com)
(END) Dow Jones Newswires
March 25, 2025 14:49 ET (18:49 GMT)
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