By Denny Jacob

Dollar Tree is scheduled to report its fiscal fourth-quarter results Wednesday before the market opens. Here is what you need to know.

SALES: The discount-store operator is expected to post $8.24 billion in sales for the quarter, down from $8.63 billion in the prior-year period, according to analysts polled by FactSet. The company previously forecast sales between $8.1 billion and $8.3 billion.

NET INCOME: The Chesapeake, Va., company is expected to post $467.6 million in net income compared with a loss of $1.71 billion in the year-earlier period.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $2.20 a share. The company previously guided for adjusted earnings per share between $2.10 and $2.30.

The stock rose around 10% during the quarter and recently traded around $68.39.

WHAT TO WATCH

--Dollar Tree's outlook will be in focus as the retailer's lower-income customers cut back on spending amid higher inflation and lower consumer confidence. But recession fears could also bring in more foot traffic from consumers looking to save.

--The latest quarter will also represent the first few months with Michael Creedon Jr. as its permanent chief executive. Stewart Glendinning is slated to join as chief financial officer at the end of the month. The organizational changes come as the company navigates concerns about inflation, tariffs and regulatory pressure to alter ingredients found in popular foods and drinks.

--Analysts at Jefferies note that foot traffic at Dollar Tree and Family Dollar declined in February, which they believe could have been affected by weather. They believe it's possible recent trends could be better with the weather improving, but note that near-term results may have been pressured as a result.

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

(END) Dow Jones Newswires

March 25, 2025 11:48 ET (15:48 GMT)

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