11月4日，美元树宣布首席执行官Rick Dreiling离职，并任命Michael C. Creedon Jr.担任临时首席执行官，同时正在寻找继任者。管理层的突然变动可能会损害美元树在这一关键时刻的运营能力，尽管该公司在公告中重申了其全年和第三季度指引。US “One Dollar Store” giant Dollar Tree (DLTR.US) will announce financial results for the third quarter.
The Zhitong Finance App learned that the US “One Dollar Store” giant Dollar Tree (DLTR.US) will announce its third quarter earnings report before the US stock market on December 4 (Wednesday). The market expects the company's Q3 revenue to be $7.45 billion, up 1.9% year on year; earnings per share of $1.07, up 10.3% year over year.
In the current economic environment, one-yuan stores are under tremendous pressure. Many people have noticed that Walmart (WMT.US) is seizing market share from one-dollar stores. Walmart's strong third-quarter results may be a warning sign for dollar tree investors. What is particularly noteworthy is that Walmart's comparable sales in the US increased by 5.3% in the third quarter, higher than analysts' estimate of 3.61%. This increase covered several categories, including the general commodity sector, which continued to decline for two years due to inflationary pressure.
On November 4, Dollar Tree announced the departure of CEO Rick Dreiling and appointed Michael C. Creedon Jr. as interim CEO while seeking a successor. Sudden changes in management could damage the dollar tree's ability to operate at this critical time, although the company reiterated its full-year and third-quarter guidance in an announcement.
Additionally, one-time costs due to store closures may continue to hurt dollar tree profits. Dollar Tree announced plans to close nearly 1,000 stores at the end of last year. Of these, 600 stores have already closed this year, accounting for 3.75% of the company's 0.016 million stores. After closing a large number of stores, analysts believe Dollar Tree's third-quarter sales are unlikely to increase over the same period last year.
What is even more worrisome is that Trump is about to return to the White House, whose political platform is to raise tariffs, which poses a clear threat to the dollar tree, which relies on imported goods at lower prices. In fact, Trump's imposition of tariffs damaged the dollar tree in 2018, and the company's stock price fell 16% that year. In this election cycle, tariffs seem to have taken a higher place on the Trump administration's early agenda, so Dollar Tree shares face more resistance in the year ahead.
Overall, Wall Street analysts gave the dollar tree a “hold” rating, with an average target price of $81.37, which is 14% higher than the current level. Since this year, the dollar tree stock price has fallen by nearly 50% cumulatively.
