Dollar Tree on Wednesday announced that it is selling its Family Dollar business as the company reported fourth-quarter results for 2024. DLTR stock climbed on the news.
Dollar Tree said that on March 25 it entered an agreement to sell Family Dollar to Brigade Capital Management and Macellum Capital Management for just over $1 billion, subject to closing adjustments. Following a strategic review, the company's board of directors determined that selling Family Dollar best unlocks value for Dollar Tree shareholders.
Dollar Tree expects net proceeds to total around $804 million. The company also expects a $350 million tax benefit from losses on the sale.
The company expects the deal to close within 90 days, subject to customary closing conditions and approvals.
For fourth-quarter results, Dollar Tree reported earnings of $2.29 per share adjusted, beating FactSet expectations for $2.20 per share. Sales rose 0.7% to $5 billion, well below analyst views for $8.2 billion. Comparable sales rose 2%.
The company expects Q1 earnings will range from $1.10 to $1.25 per share adjusted on revenue between $4.5 billion to $4.6 billion. Comparable sales for the first quarter are expected to climb 3% to 5%.
FactSet expects Q1 earnings of $1.49 per share on $7.86 billion in revenue.
For 2025, Dollar Tree expects adjusted earnings to range from $5 to $5.50 per share on $18.5 billion to $19.1 billion in sales. FactSet analysts predict full-year earnings of $5.42 per share on $30.82 billion in revenue.
Dollar Tree Stock
DLTR stock swung 3% higher Wednesday. Shares slid 3.7% Tuesday.
Dollar Tree is down about 7.7% in 2025 and trading near the bottom of a yearlong consolidation.
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