Dollar Tree 4Q Loss Widens, Confirms Sale of Family Dollar Business

Dow Jones
26 Mar

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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