DLTR - Why Dollar Tree Stock Got Hammered Today
2024-03-13 10:32:57 ET
Shares of discount retail chain Dollar Tree (NASDAQ: DLTR) got hammered on Wednesday after the company reported a whopping $1.7 billion net loss in its most recent quarter. As of 9:45 a.m. ET, Dollar Tree stock was down 13%.
In the fourth quarter of 2023, Dollar Tree generated net sales of $8.6 billion, which were up 12% year over year and right on schedule. However, the company swung to its massive aforementioned loss because it recognizes that it has too many underperforming locations.
Dollar Tree previously announced that it was reviewing its portfolio of stores. But with Q4 results, the company announced that it's closing 600 locations of its Family Dollar chain in the first half of 2024. Thereafter it will close another 370 Family Dollar locations as their leases expire. For perspective, Dollar Tree owned almost 8,400 Family Dollar locations as of Feb. 3.
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Why Dollar Tree Stock Got Hammered Today