dollar Tree On Wednesday, it said that it is getting market share with high -income consumers and may increase prices on some products to offset the President. Donald Trump‘S Tariff,
Michael Creedon, CEO of a discount retailer, said the company “is looking at the price seeking behavior in all income groups.” While the dollar Tree has always trusted low -income shopkeepers and received about 50% of his business from medium -income consumers, continuous inflation has “strongly demanded from high -income customers”, Creedon said on an analyst call.
The success of the dollar with high -income shopkeepers follows similar benefits Wal-martWhich is Inroads with Kohrt After a long period of high prices.
Trump’s tariffs on some goods from China, Mexico and Canada – and the possibility of widespread duties on trading partners around the world – only added concerns about the domestic budget. While the dollar will use a strategy such as interacting with tree suppliers and advancing manufacturing to reduce the effects of duties, it can also increase the prices of some goods, Creedon said.
The dollar Tree has raised prices compared to its standard $ 1.25 products on around 2,900 so-called multi-pris stores. Some products can cost anywhere from $ 1.50 to $ 7 at those places.
The retailer weighed the possible impact of high-or-ore customers and tariffs Announced his fiscal fourth quarter earningsDollar Tree also said that it will happen Sell ​​its struggling family dollar chain For a union of private equity investors for about $ 1 billion.
The dollar Tree stated that its net sales for continuous operation-its name is $ 5 billion for the brand-spectacle, while the same-store sales climbed 2%. The adjusted income period per share came to $ 2.11.
It is not clear how the figures compare with the estimates of Wall Street.
For FY 2025, the dollar tree is expected to sell a net sale of $ 18.5 billion to $ 19.1 billion from continuous operation, with an increase of 3% to 5%. It estimates that it will post adjusted income of $ 5 to $ 5.50 per share for the year.
Creedon said that the hits expected from the first round of Trump imposed on China in February would have been from $ 15 million to $ 20 million per month from the first round of the first round, but the company has reduced by about 90% of that effect.
Creed said that this month this month, with an additional 10% of duties on China, with 25% levy on Mexico and Canada that came only partially effective, the dollar tree would collide with one and $ 20 million per month, said Creedon said. The company is working to compensate for those duties, but due to this confusion they were not included in their financial guidance which tariffs would be effective and when.
