Dollar Tree to Close About 1,000 Stores, Books Over $2 Billion in Charges
Business,Dollar Tree,Family Dollar
Dollar Tree's earnings in the holiday quarter were wiped out by billions of dollars in charges tied to a review of the company’s portfolio of stores, and the company plans to close about 1,000 stores over the next few years.
The dollar-store operator reported a loss of $1.71 billion, or $7.85 a share, for the three months ended Feb. 3, compared with a profit of $452.2 million, or $2.04 a share, a year earlier.
Stripping out more than $2 billion of charges tied to the portfolio review, earnings were $2.55 a share. Analysts surveyed by FactSet expected adjusted earnings of $2.66 a share.
Sales rose almost 12% to $8.63 billion. Analysts expected $8.67 billion.
Shares of Dollar Tree fell more than 9% in premarket trading, weighing on shares of other discount retailers. Dollar General and Five Below both slipped about 3%.
