This year, the retailer has again added $3 and $5 prices across more than 1,800 stores.
The dollar tree outperformed Wall Street fourth quarter earnings estimates on Wednesday following the company’s decision to raise the average price from $1 to $1.25.
Like-for-like sales were up 8.7% at Dollar Tree and 5.8% at the company’s Family Dollar division.
The discount retailer also added a range of items priced between $3 and $5 at more than 1,800 stores during the quarter and plans to add another 1,800 stores to the list in 2023.
Some of the foods include frozen and chilled foods such as proteins, pizza and ice cream.
DOLLAR TREE DOUBLES ON GOODS OVER $1
CEO Rick Dreiling said at a press conference that the key takeaway from the new price tiers “is not just selling the product, but the store’s ability to manage multiple price tiers and not create confusion for the customer.”
He added that the improvement is not only about the number of sales transactions, but also what happens in the basket. “And we know that the basket is significantly larger when we get several price points in it.”
DOLLAR TREE FINED OVER $250,000 FOR SECURITY BREACH
During the fourth quarter, Dollar Tree’s consolidated net sales increased 9% to $7.72 billion. Net income was $452 million for the three months ended January 28, 2023, little changed from $454.2 million a year ago.
Diluted earnings per share (EPS) rose 1.5% to $2.04. In 2022, consolidated net sales increased 7.6% to $28.32 billion and diluted earnings per share increased 24.3% to $7.21.
The retailer also bought back 4,613,696 shares for $647.5 million in 2022.
CONSUMER CONFIDENCE IS DECLINED AGAIN
Dollar Tree Outlook for 2023
Consolidated net sales for the entire Fiscal Year 2023 are expected to range from $29.9 billion to $30.5 billion, with sales growth in single digits lower in Dollar Tree and average single digit sales growth in Family Dollar .
According to a company statement, Dollar Tree believes its operations and investments, which began in the second half of fiscal year 2022, are already driving revenue growth.
“In less than a year, we’ve made significant changes and we believe we have the team to take advantage of the opportunity ahead of us,” said Dreiling.
“We are confident that the targeted accelerated investments will transform our company, enable and propel us through years of accelerated growth and improved profitability, and enhance the company’s ability to achieve significantly higher long-term profits,” he said.
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Dollar Tree Inc
|DLTR||DOLLAR TREE INC.||148.12||+2.84||+1.95%|
Credit: www.foxbusiness.com /