The CEO of Dollar Tree abruptly resigned after less than two years on the job — prompting a fleeting surge in the company's stock price.
The discount retailer announced late Monday afternoon that Rick Dreiling had stepped down as both chief executive and executive chairman, effective a day earlier.
"With my health presenting some new challenges over the past two months, the time is right for me to step away and focus on myself and my family," Dreiling said in a prepared statement.
Dollar Tree's share price rose 6.6%, to $71.25, in after-hours trading but dropped to $66 early Tuesday.
It was at $66.52 late Tuesday afternoon, down more than 53% since the start of the year.
Dreiling was 68 when Dollar Tree announced his appointment as executive chairman in March 2022 as part of a board shakeup and he was named CEO in January 2023.
Dreiling, a former CEO of rival Dollar General, was put in charge to reverse slowing sales as its core low-income customers struggled with inflation and he received about $3.4 million in total compensation last year, according to the Wall Street Journal.
But in March, Dollar Tree said it had missed market expectations for holiday-quarter sales and profits, and announced plans to close 970 of its Family Dollar stores, Reuters reported at the time.
In June, Dollar Tree said it was considering selling off Family Dollar and in September, it cut its annual forecasts and said it had closed about 655 Family Dollar stores as of Aug. 3 and planned to close 45 more through the end of the year, according to Reuters.
Dollar Tree chief operating officer Michael Creedon Jr. was named interim CEO while the board considers internal and external candidates for a permanent replacement, the company said.
Lead independent director Ned Kelly III was elected chairman and said in statement, "We support Rick's focus on his health and wish him all the best. We are fortunate to have a talented leader in Mike Creedon to step in and help drive us forward."
