Dollar Tree Sees Tariffs Pressuring Profitability in 2020
On Wednesday, Dollar Tree (NASDAQ: DLTR) announced mixed results for the fiscal fourth quarter that includes the key holiday shopping season. The discount retailer paired that news with a conservative outlook for 2020.
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Sales at existing locations, known as comps, rose 1.4% in the Dollar Tree segment and fell by less than 1% at Family Dollar. Overall, comps were up 0.4%, putting the chain behind most industry peers. Walmart notched an increase over 2%, for example, and Ross Stores grew comps by 4% in the fourth quarter. Dollar Tree also noted weaker profitability thanks to higher tariff payments and increased labor costs. Yet earnings landed near the top of the outlook range management had issued.
Source Fool.com
