Are you ready to dive into the latest business news from Extreme Investor Network? If so, get ready to learn about Dollar Tree’s recent announcement regarding the potential sale of its Family Dollar brand.
In a strategic move to revamp its struggling business, Dollar Tree shared plans to consider a sale of its grocery-focused Family Dollar brand. The company has already closed over 500 Family Dollar stores in its fiscal first quarter and is seeing progress in its targeted strategy for the streamlined Family Dollar banner.
Dollar Tree acquired Family Dollar in 2015 for nearly $9 billion, but has faced challenges in competing against its major rival, Dollar General. To explore strategic alternatives for the Family Dollar business, Dollar Tree is working with JPMorgan and Davis Polk & Wardwell advisors in the review process.
While Dollar Tree’s fiscal first-quarter earnings report showed positive results for the Dollar Tree brand with a 1.7% increase in same-store sales, Family Dollar sales only saw a slight 0.1% climb. Revenue for the company rose to $7.63 billion, up 4% from the previous year.
Looking ahead, Dollar Tree expects sales for the second quarter to range from $7.3 billion to $7.6 billion, with growth for the Dollar Tree brand between 2% and 4%. However, sales for the Family Dollar segment are predicted to remain relatively flat.
Despite facing challenges from higher costs and market competition, Dollar Tree is continuing its turnaround efforts under the leadership of CEO Richard Dreiling. Stay tuned to Extreme Investor Network for more updates on this evolving story.
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